Xie: Internet finance should have imagination

The extent of Internet finance is evident from the Internet finance session of the China Internet Conference yesterday. From the financial, Internet, E-commerce industry and many cross-border practitioners discussed the Internet finance opportunities and innovation. Among them, China Investment limited liability company deputy General Manager Xie speech "The rise and impact of internet finance" has been a concern, Professor Xie for many years to study internet finance, 20 minutes of speech in simple, "business value" sorted out the core point of view:

The internet has basically overturned several important areas is books and music, and finance is not the logistics support industry. Finance is considered by abstract theory: all financial products are a combination of different data, and then the data is then restored to financial products via the Internet and the payment system.

Understand the rationale for Internet finance-first, remember that all finance is data. Second, the data in the online mobile contains everything, and then revert to a variety of financial products, to achieve number matching, deadline matching and risk pricing. This is the core of understanding the abstract theory of internet finance. This does not need logistics support, can be completed online.

1. Third party payment

At present, the third party Bank payment license issued more than 250, payment system is not a bank-specific business, who can do to pay. Online, people can make payments. There may be no third party payment concept in the future. The future development of Alipay systems may not be a third-party payment concept.

2, everyone loans (peer-to-peer)

The concept of everyone loan has been controversial, in fact, is the N-member of the club, the club members of each other to borrow, this information asymmetry in the situation tends to be infinitely small. When the Internet solves the information asymmetry between hundreds of millions of people and tends to reduce to infinitesimal, this is the key core of peer-to-peer loan.

3, Ali small loan

Using a lot of information on Taobao, and then making loans to everyone by using Alipay, this practice is completely different from what banks are doing. Every dollar, every day, it is a mechanism for automatic lending and automatic repayment, which is not the same as the banking process.

Every merchant on Taobao, all acts constitute the price of its own risk, then Ali small loan according to the risk pricing, give the credit limit, so that he can at any time loan repayment. This is a dynamic risk pricing process, so that the understanding of Ali small loans will be more profound.

4. Public-Raised

The pattern of public financing is very similar to everyone's loan, but everyone is a creditor's rights. A person put a good idea of their own online, so that everyone to invest, he used his products to repay. Gained equity in this way online.

In the world only the formal law of the United States through small businesses can obtain equity financing in this way. American law is also a convenience for small businesses to obtain equity financing. The way to raise finance is a step forward than the original angel investment.

5, the Internet to sell financial products

In fact nothing special, now special is the balance treasure. It is the function of the currency, the function of payment, the function of the financial product and the hedge of profit risk. Money market funds have the function of currency. In fact, money market funds, when invented in the United States, people realize that it will one day be able to have the payment function. The other feature of the Internet's financial products is that it breaks through the boundaries of time and space, which is now a common physical network.

6. Internet currency

The most rising state of internet finance is the internet currency. Now all of the internet finance is only the existing commercial banks, securities companies to challenge the future development to a certain extent, the shape of the Internet currency is the challenge to the central bank.

1. Basic framework

Here more abstract, internet finance and the current commercial banks, securities market two financial models, and listed as the third type of internet financial model, now the academic community does not recognize this model, that it is only securities companies and banks, or fund companies a tool, does not have the basic human financial model, I think it's possible to have a parallel model of direct banking and indirect financing, which is theoretically controversial.

2. Democratization

The reason why Internet finance is different from bank financing and securities market financing is that internet finance is a more democratic and popular financial model, just like Apple app, the future products should be used by people who do not understand finance. Internet finance can become a more democratic, public, universal Financial.

In the future, all products, like apps, are a simple video game, not controlled by a few elites. The Division and specialization of the financial sector may be greatly diluted in internet finance, and the inventors of market participants and products are likely to be civilians. Everyone may invent their favorite products on internet finance, which is the core of the future of internet finance.

2. The popularization of the sharing mechanism

Now we all feel that finance is very esoteric, complex models, complex pricing methods. These things will be possible in the future of software, immobilization. As long as you download a thing on the internet is fixed, risk pricing comes out, this is the internet finance and we now understand the most different place of finance.

1, the Central bank super net silver?

Internet finance is based on mobile payments, and Apple has widened the boundaries of mobile finance after it invented smartphones. Now mobile payment trends, we hope that through the bank card as the background. Suppose, if the society, the computer and the network are fully developed, everyone would open an account at the central bank's Super Net Bank, and if the central bank allowed 2 billion people to open an account directly and technically, what kind of payment system would that be? You can imagine. The radical reform of the human system is the central bank's super net silver.

2. Personal Data System?

The information processing of internet finance is very simple, big data, cloud computing. It can be assumed that every person from birth to the present, each person's behavior information, are data information, and this kind of data information, through the search engine, through large data can be queried at any time, we can find the Internet financial information base has.

Now we are encountering risks, scams, illegal fundraising, defaults, which are based on data and risk asymmetry. If you imagine that the problem will be solved in the future, the financial efficiency of the Internet is very high, and the personal information situation can be solved with large data.

This gives us the basic concept of time series dynamic risk assessment. Under the premise of large data, this can give any capital demand of risk pricing, or call dynamic default probability, the cost of giving this probability is very low. In this case, now the commercial banks of this set of risk pricing will be overturned. The cost of financial transactions is so high that everyone is busy looking for default probabilities. If large data can automatically solve the problem of default probability, the whole transaction cost is reduced, which is also the principle of understanding Internet finance.

3. Social networking Exchange?

Can the allocation of resources through the Internet, the bank loans These things on the internet to solve, automatically find the optimal configuration? Earlier Facebook had sold its own stock on the internet before it was officially listed, and many of its investors, not Facebook's institutional and 800 million netizens, had to buy it – not through the SEC. Eventually, of course, the U.S. government won't allow it. In fact, on social networks, they can form their own stock exchange market.