Held in Beijing on June 28 this year, “the second financial technology and financial security summit”, zhongguancun Internet, chairman of the financial research institute, national culture institutions, blockbuster released the “2018 China’s financial science and technology competitiveness ranking of 100”, good network after the list for the first time in 2016, again with the ant gold suits, tencent financial along on the list.
With the implementation of a series of new regulations and policies such as the four red lines, ten Principles and Interim Measures for the Management of Business Activities of Online Lending Information Intermediaries issued by the CBRC, the first year of supervision of P2P platforms has been announced. It is understood that in June this year, there were nearly 60 network loan platform problems, in July even ten billion level of large platform has exploded.
However, from the beginning of this year to September 5, the cumulative loan amount of Yuly.com reached 20 billion yuan, according to data disclosed on its website. In the recent turbulent period of frequent thunderstorms on various P2P platforms, Youli.com can still maintain such a good record, which is inseparable from its adherence to the principle of “small scattered” borrowing, which can be seen directly from the proportion of the quota allocation of Youli.com borrowing projects: The proportion of loans with less than 10,000 yuan was 89.41 percent, that with 10,000 to 50,000 yuan was 6.31 percent, that with 50,000 to 100,000 yuan was 2.89 percent, and that with more than 100,000 yuan was only 1.39 percent.
“Small scattered” ideas blast the city, favorable network “deposed” large loans
What is microdistribution? Why does it leave the favorable net in the thunder tide alone? It is said that the large loan mode is more conducive to the network loan platform to control the credit risk of borrowers, why the Favorable network chose to adhere to the small scattered mode?
The popular phrase for microdiversification is “don’t put all your eggs in one basket.” In other words, the online loan industry refers to the way that P2P platforms distribute the lent funds to borrowers of different age groups, regions and industries according to a certain small limit. For example, 99% of the loans of Yousou.com are below 100,000 yuan. Among the borrowers, 10.2% belong to the post-60s generation, 41.72% belong to the post-80s generation. 28.9 percent belong to the post-90s generation. On the other hand, 60.87% were male and 39.13% were female.
What is the magic of the principle of “small dispersion” that can guide the beneficial network to cut its way through the thundertide and reap a lot?
Dispersion, as the name suggests, is the most important risk issue for P2P platforms. Review recent run of the network platform, which is mostly because of capital chain rupture, principal and interest receivable down as late as the platform, investigate its reason, is because the failure to properly scattered loan risk, caused due to a few bad debts has led to a shortage of funds, leading to the investor of the receivable cannot extend, capital chain rupture.
Second, microfinance wisely eschewed wholesale lending, where traditional finance competes. Recently, more and more P2P platforms have begun to reflect on whether the online lending industry and the traditional banking industry compete for resources or complement each other. Youlou.com has already told us the answer to this question with practical actions. Turning to the small loan market, which is complementary to traditional finance, is the way for the sustainable development of P2P platforms in the future.
Competing for market resources with the banking industry, which has been deeply engaged in large-amount lending business for many years, P2P platforms are at a disadvantage in policy support, principal risk protection, income protection and many other aspects. However, the existence is reasonable and the online loan industry has been relying on the characteristics of short, frequency and fast industry, which is the lack of the banking industry at present. Youlou network is also see through the essence, just focus on the banks can not meet the small fast consumption of the long tail group efforts, so far, Youlou network has met the borrowing needs of 4 million people, a total of about 86 billion yuan of loans, it can be said that the war is fruitful.
Third, take a look at the loan quota data disclosed by the official website of Favorable net: the total proportion of the target below 100,000 yuan is 99%. It can be said that Youli has completely abandoned the project of large loan and dedicated itself to “small scattered” projects. Why does Youli want to “abolish the hundred schools of thought and only respect Confucianism”? In the final analysis, it is because of the influence of the aforementioned “first year of regulation”. In 2016, China Banking Regulatory Commission (CBRC) made a series of clear restrictions on the borrowing amount of P2P platforms, such as “the borrowing limit of a single person shall not exceed 200,000 yuan, and the borrowing limit of a single organization shall not exceed 1 million yuan”, requiring platforms to strictly adhere to the principle of “small and decentralized” development.
Therefore, advantageous network exclusive “small scattered” concept is also to comply with the rigid tide of “compliance”. In the current online loan industry reshuffle period, shuffle rules are not only limited to the survival of the fittest between platforms, the most important and the decisive factor of “compliance”, the recent explosion of several online loan platforms has a profound manifestation: Tang Xiao Seng from 15 years since the establishment, has not been online bank deposit tube, finally in June this year because of suspected illegal fund-raising was the economic investigation of the end of the closure. Then a few days later, another four large private high rebate platform Lianbi Financial for the same reason, under the investigation of Shanghai Songjiang branch cool. So up to now, there is still a joke on the Internet, “Tang Monk on the road to the west, took away the router.”
“Small dispersion” has hurt, “beneficial net” mode has pain
“Compliance” does provide a guarantee for the healthy development of online loan platforms, but it also brings certain “troubles” to the platform. Beneficial network in the depth of the implementation of the “small scattered” principle at the same time, it will inevitably encounter the following problems.
First of all, after the risk “dispersion” a large number of good and bad credit qualification audit problem is a headache. The principle of “small diversification” does provide favorable room for the occurrence of bad debts, but in the early stage of the loan process, Favorable has to spend a lot of time on the huge and scattered credit review issues. And for favorable network’s current mode of checking letters, this “trouble” may be hidden in its fatal position of a time bomb.
Why do you say that? It is understood that favorable network and borrowers are connected through cooperation with each small loan company. This is a process in which small loan companies collect borrowers in need offline and then recommend them to Youli.com, which then connects borrowers and investors together through second review. Therefore, the task of the first audit completely falls on the small loan companies, while the second audit conducted by Youli.com is completely divorced from the offline field investigation.
Although the result helps to better network under follow the principle of “small scattered” quickly find borrowers, but for such umpire letter link, favorable network should not only strictly control the small loan companies credit qualification, but also handle a large number of different ages, different industry and different area of the borrower credit reporting data, and due to lack of transparency of offline on-the-spot investigation. Generally speaking, favorable network is established in the “small scattered” principle of the credit system is a large back operation space, this is undoubtedly favorable network a dark disease, and may be a hidden time bomb.
Secondly, small loans usually occur in the immediate consumption scenario, so it is a test for the quick decision-making and quick lending ability within The favorable network. As mentioned above, the initial audit of the loan end of Advantage.net is completed by small loan companies, so Advantage.net can directly borrow money, which can also be found on the official website of Advantage.net, there is only an entrance for investment, but no entrance for loan.
So if a borrower wants to favorable loan online, he first need to work after a small loan company in personal information, information, Banks, property, water information process, a series of audit through, pass good net internal relating to the personal credit information, property information, job/company information, such as audit letter process, finally to determine whether can borrow. Not only is the process complex, but the credit review process of different small loan companies is different, which increases the uncontrollability of the time. Obviously this is not consistent with the demand of instant consumption, but also a pain point of the current favorable network operation model.
Finally, “small dispersion” brings a large amount of data information to be carried, which increases the pressure on the beneficial network system load and human load. Whether loan project information, information, types of credits, the borrower or the docking between investors and borrowers, borrowing the collection business, etc., with the further development of “small scattered” model increases the number of data and traffic, this means that the favorable network not only need to follow up improve the bearing capacity of the system, it is more important, Is the need to invest a lot of manpower to ensure the quality of service.
To increase the data carrying capacity of the system, you only need to buy more hardware or raise the cost of fintech. However, at present, technology can not completely replace human services, to build a group of additional staff to provide quality services, advantageous network must spend a lot of time and money to meet the company’s surging demand. A few years from now, if ever, it’s really hard to imagine what youli’s “net loan factory” will look like.
It has been more than two years since the Banking Regulatory Bureau issued the principle of “small amount dispersion”. Favorable Network will “follow the principle of small amount dispersion” as the foundation for the development of enterprises, but from the above aspects, favorable network still needs to further carry out the idea of “small amount dispersion”.
Information transparency, loan end control, favorable network is still on the road
“It is the group of borrowers who can repay the money that is the underlying system to ensure the safety of the online loan platform,” said Wu Yiran, CEO of Youlou. It can be seen that Favorable network attaches great importance to the credit checking of borrowers, which is also the key factor for the operation of the “small scattered” mode. However, the establishment of a good borrower group is only the beginning. To carry out the principle of “small scattered” deeply, favorable network has yet to work hard.
On the one hand, “micro-diversification” means that the beneficial network needs to publish a large number of loan projects from different borrowers, and the complexity of these loan projects due to the diversification of borrowers “diversification” will make investors feel uncomfortable when evaluating the reliability of beneficial network. In terms of the disclosure information of loan projects provided by Youyang, there are still many deficiencies, such as the words of loan projects are not detailed enough, or most of the projects are not equipped with pictures.
Therefore, in order to enable investors to effectively judge investment risks, fully understand the loan destination of the platform, and enhance the sense of security of investors, Youli.com should improve the transparency of loan project information, and focus on the shortcomings of youli.com mentioned above. For example, detailed demand information of borrowers can be learned through field investigation, and accurate and true written expressions and picture descriptions of loan projects can be provided to investors.
Good network, on the other hand, based on the “small scattered in principle” credit audit system has been criticized by people, because good net on the borrowing side with small credit cooperation pattern, this pattern makes good network in the aspect of risk assessment is very passive, and once the small credit platform collapse or run, will be very adverse effects on good network.
However, according to the current development of Youlou.com, it is almost impossible for it to completely break away from the assistance of small loan institutions and independently take charge of the search and credit examination of borrowers. However, Youlou.com can strengthen the control of the lending end by partial acquisition or wholly-owned acquisition of more important small loan institutions, and conduct field investigation of borrowers’ credit, so as to strengthen the layout of the lending end.
The connotation of “petty decentralization” proposed by CBRC is to provide financial services for all social strata and groups in an all-round way, which coincides with the development strategy of “inclusive finance” as the goal of Advantage.com. But it is understood that the current domestic network loan platform can truly achieve the “small scattered” principle of less than 10% of the proportion, and today’s favorable network, not only toward the benefit of the people’s “universal benefit” direction of development, but also in a high-profile leading industry compliance trend. In the future, with the continuous exploration of favorable network, I believe that the system established in the principle of “small dispersion” will be more perfect.
Article/Liu Kuang public account, ID: Liukuang110, this article first leek finance