Recently, the phenomenon of thunder explosion in the network loan industry has been common. If you understand the rules, you will know that behind the event is the process of cleaning up the shortcomings of the whole network loan industry. In this process, the industry turbulence is inevitable, but in the turbulence, the online loan industry to standardize the pace of healthy development, and accelerated a big step.

Three joint efforts to speed up the net loan industry to standardize the healthy development

At this time, the more painful the industry is, the leading role is not only capital, but requires a joint effort to push forward, so is the online loan industry. In view of the increasingly intensified regulatory tightening, platform exit phenomenon, network lending industry institutions, participants can not be disorderly, because the positive development signal, in the imperceptible is slowly released to the industry.

This positive signal can be judged more clearly from the positive response of the Mutual finance Association, regulatory authorities and the institutions themselves.

First, in view of the phenomenon of industrial turbulence, Mutual Finance Association has spoken out for many times and actively guided the institutions involved to withdraw in an orderly manner or take the initiative to rectify, so as to avoid disturbing the market order due to excessive exaggeration and promote the healthy development of the online loan industry. Mutua’s action not only reflects its positive response to the turmoil in the online loan industry, but also reflects its firm confidence in the sound development momentum of the whole Internet finance. Under the promotion of mutual finance Association, the online loan industry is approaching the distance of standardized development step by step.

Second, while orderly promoting the construction of Internet financial regulatory mechanism, the People’s Bank of China and the Banking and Insurance Regulatory Commission actively guide the institutions engaged in Internet technology to play a role in the allocation of financial resources. As CBRC Fan Wenzhong said: the network credit can not be killed, the future will appear really excellent network credit enterprises. The collective voice of the Central Bank and the Banking and Insurance Regulatory Commission is the affirmation of the universality of the whole online loan industry to China’s financial services.

Thirdly, in the face of the increasingly tight special rectification actions, the institutions actively embrace compliance. For many institutions in the industry, it takes a long time to solve the compliance problem, but for the platforms that have been in the first place, there is no doubt that they have seized the first opportunity to win, and the rights and interests of users can also be well protected. For example, in the past year when the supervision was implemented, the head platform Yendingdai made arrangements in advance to embrace compliance in the fields of information disclosure and capital deposit management, and recently became one of the first access platforms of Baixing credit investigation with 15 institutions, breaking the information island of China’s credit investigation industry and promoting the virtuous cycle development of credit data.

On the whole, the collective voice of authoritative institutions and the online lending industry’s promoting effect on the inclusiveness of China’s financial services are obvious to all. The positive response and good development momentum of the head platform have also restored confidence for the industry.

But then again, as online loan practitioners, compliance is only the starting point for long-term development, not a permanent exemption from death in the industry. What ultimately determines the life and death of a platform is whether it can win the favor of investors.

Behind the positive development, there are two big suggestions for investors

Supervision only plays a role in supervising and promoting the healthy development of the whole online loan industry, and the institutions themselves should also take half of the responsibility. In other words, this seems to be a regulation-led bureau, but at the end of the day, the responsibility lies with the institutions.

However, whether the platform can go long term ultimately depends on investors. At this time, the outbreak of panic to investors inevitably caused some interference, how to choose the right online loan platform, investors may wish to consider from the following two directions.

First of all, risk control ability is the primary factor. As the most basic requirement of the online loan industry, the level of risk control ability determines whether the platform can guarantee the safety of funds to the maximum extent and give investors confidence. As early as 2015, The Company was listed on THE New York Stock Exchange. With years of deep cultivation in the industry, its risk control technology has been constantly optimized and matured. For example, it has launched the “Honeycomb System” based on the risk control technology of big data in China, which has strong machine learning ability and can effectively conduct anti-fraud identification.

Second, it is an outstanding platform for fintech capacity building. In addition to embracing compliance, institutions in the online lending industry also need to have certain strength in fintech capacity building and export work if they want to win the favor of investors. The fintech capability sharing platform, YEP, has strong fintech capabilities, providing partners with credit assessment, accurate customer acquisition, and lower customer acquisition costs. Since the platform was launched in 2017, Yirendai has partnered with 40 industry organizations.

In addition, investors need to consider many other factors when choosing investment platforms, such as lack of experience in line and operation, high rebates, slow compliance progress and other platforms, investors should be cautious. The safest investment choice is undoubtedly the platform with rich experience and outstanding comprehensive strength.

The bell of new spring is ringing in the industry

In general, although round after round survival of the fittest is a normal phenomenon of the online loan industry towards standardized development, there are inevitably some over-exaggerated and interpreted voices in disrupting the market order, but also hinder the pace of the industry forward. From another point of view, the net loan industry as if in the “uncertain future” moment.

According to incomplete statistics, more than 110 P2P platforms have exploded since June 2018. And it can be expected that there will be problems in the late platform withdrawal.

At this point, what the rest of the online lending institutions need to do is to return to the original intention of the industry, use their own powerful Internet technology to provide good services for inter-individual credit matching behavior, and supplement the service vacancy that traditional finance cannot reach.

However, as mentioned above, in the turbulent period of the online loan industry, the withdrawal of a large number of platforms is the performance of eliminating the false and preserving the true, and it is also the new beginning of the bright development of the industry. Under the promotion of mutual finance association, regulatory authorities and industry head platform, the online loan industry in the turbulent period is not the coming winter, but is ushering in the spring of the industry and investors.

Article/Liu Kuang public account, ID: Liukuang110