Through the ages, there have been countless stories of diaosi coming back. For example, Zhu Yuanzhang, emperor Taizu of Ming Dynasty, who was born in a poor peasant family, transformed himself into an emperor and self-made founder of JD.com, liu Qiangdong, transformed himself into a billionaire with a net worth of ten billion yuan, xiaomei, which was once worried about sales, and jumped into a unicorn company with a market value of more than 40 billion dollars. Tuandai changed from a little-known small platform, Now it has been promoted to one of the few P2P platforms in China with 100 billion RMB…
The story of diaosi’s counterattack is repeated every day. It’s important to note that not all diaosi can make a counterattack. Every diaosi who can make a counterattack must have something special about them. Among them, the body is in the high-risk areas of P2P thunder frequently, but still strong in the industry’s first team tuandai network is the focus of the market. Then, how did tuandai network in this hot Internet financial market, step by step, and successfully win a cup of soup?
The root to transform hundreds of millions of unicorns, the group loan network’s way back
2012 is the year when Tuandai was founded, and also the year of the development of P2P industry in China. In this year, P2P platforms have mushroomed, and the whole P2P industry has become a red sea. As of 2012, the number of platforms in China has reached 300, with an increase of 39.3%, and the number of investors has exceeded 50,000. At the beginning, there were 300 platforms competing with Tuandai for the “fat meat” of mutual finance industry, and the competitive pressure was not small. In addition, “grassroots” born, there is no backer to borrow from, the group loan network to successfully attract the attention of the market, it is not easy.
In order to attract more investors, the group loan network at risk, set off a “price war”. The investment mechanism established by him has raised the investment yield of Tuandai.com to around 30%, and even reached 40% at the highest point. Data show that the return rate of tuandai is at least 9 percent higher than the industry average. Through this gamble, tuandai not only improved its reputation, but also successfully attracted many investors who rushed to the high interest rate, so it has a firm foothold in the industry.
In order to promote further development of enterprises, the group loan network also began a new strategy. In December, Tang Jun, founder of Tuandai, splashed out a fifth of his fortune on a chance to have lunch with Shi. Through this interaction, tuandai not only expanded its network of contacts, but also received financial support. In 2013, it obtained 100 million yuan invested by giant network and completed A round of financing. Later, Tuandai obtained 200 million round B financing in 2015 and 1.8 billion round D financing in 2017, which were also related to this “lunch”. Through these rounds of financing, the asset end of tuandai network has also been well optimized.
The continuous blood of funds not only cured the old disease left by the “brutal” marketing before Tuandai.com, but also strengthened the internal construction of the platform. At the end of September 2015, Tuandai.com acquired the finance institute shortly after the “explosion of thunder” at a low cost, and successfully acquired the team known as the “small loan Huangpu Military Academy”. In addition, Tuandai successfully poached 1,000 employees from Duanlixin Financial, a subsidiary of Youlou.com, in 2016. It is not difficult to find that the group loan network through the acquisition of finance, sniper profit network, the team fighting capacity of the enterprise has not only been improved, the scale of the enterprise has been further expanded. Relevant data in 2016 showed that the transaction scale of Tuandai increased from more than 3 billion at the beginning of the year to more than 10 billion at the end of the year.
In addition, in order to grasp the lifeblood of the enterprise risk control system, the group loan network broke down the lack and closed barriers of personal credit data with the help of external forces. Through the big data provided by tmall, JINGdong, Amazon, Baidu Jinfu and other platforms, it judges the user’s credit investigation situation and repayment ability in multiple scenarios and multi-dimensions before the loan. Moreover, tuandai also uses relevant risk control models to evaluate the credit status of users, and then decides whether to lend money according to the evaluation results. In addition, relevant risk management has been developed. When the loan project is overdue, if the borrower fails to repay the loan on time within the specified period, the third-party guarantee company will advance the principal to ordinary members and the principal and interest to super members. After multiple risk control audit, tuandai network can effectively control the risk of personal credit loan.
Finally, the business involves collateral, bad debts are effectively guaranteed. The underlying assets of tuandai.com are mainly car loan and house loan. By taking these related collateral as the target of the loan, the platform can control its risk, have a great confidence to strangle the risk in the cradle before the loan, and reduce the overdue bad debt rate of the project. By The end of September this year, tuandai’s accumulative financing exceeded 125 billion yuan, and the amount of compensation was 1076.5656 million yuan, with the total bad debt rate less than 1%. These targets not only reduce the risk, but also ensure the effective operation of the group loan network.
In general, although tuandai was born with deficiencies, it successfully survived in the market after rapid development. And in just a few years, Tuandai from an unknown small platform to become one of the industry’s unicorns, and firmly in the industry’s top ten. However, after several years of radicalization, tuandai network has gradually shown its weakness, leading to its difficulty in achieving further success.
Although the market is favored, but the group loan network is still moving forward
The group borrows the grass root of net counterattack road, is full of “game sex”. It not only dares to challenge high risks, but also is good at using external forces to constantly optimize its weakest asset end and enrich the internal wings of the platform. Such a unique group loan network, so the market and the favor of capital. However, it is still carrying a heavy load throughout its exploration.
On the one hand, the deduction cost is high, affecting the consumption experience. The liquidity fees charged to ordinary members include 0.3 percent withdrawal fee, 0.5 percent early withdrawal fee and 0.7 percent debt fee. Compared with the fees deducted by other platforms, the related fees of tuandai are relatively high. After deducting the fee, the interest that the user finally gets is not as high as the profit rate stipulated on the platform. This approach will not only affect the user’s consumption experience, but also difficult to arouse the user’s desire to re-store.
In addition, tuandai network also developed a relevant automatic bidding agreement. From the time the user joins the We+ automatic service, the user’s funds will be frozen in the personal deposit account of the bank. It will take at least T+5 natural days from the start to the tender. And the setting of capital lock deadline, already affected the user’s capital income, but also extremely easy to kill the user’s patience.
Second, involving collateral, business content multifarious. At present, tuandai network in addition to consumer finance business, there are car loans, mortgage and other businesses. Although the amount of capital of mortgage loan is large, its cycle is long and the business content involved is also more complicated. It includes the procedures such as the user submitting application materials, the acceptance party reviewing materials, the asset related right holder signing in person, the appraisal of fixed assets, and the notarization by the notary department. Each operation requires a high level of professional competence of the relevant staff of tuandai network. If it is careless, it will not only affect the legitimacy of the business, but also cause the loss of relevant assets of users.
Third, go against the trend to adhere to the speed of development or blocked. At the end of last year, the relevant departments issued the Notice on The Special Rectification and Acceptance of P2P Online Lending Risks, which clearly stipulated that the establishment of risk reserves by platforms should be gradually reduced. This also means that the whole P2P industry is about to usher in a new trend to just add.
And in the huge wave to just add, tuandai network related person in charge of the investor meeting in August this year, still adhere to just add. Such insistence on rigid exchange caters to investors and can promote their investment in the platform, but it also indirectly hinders the development speed of tuandai. As the tide of going to gang becomes bigger and bigger, the regulatory pressure on the tuandai network will become bigger and bigger. In addition, since the P2P industry exploded, tuandai’s source of income from lending is shrinking, and the platform’s living space is also being squeezed. In the most depressed moment of the whole industry, the group loan network still insists on going against the wind, and its future development pace is bound to be slower than when it goes with the wind.
In a word, as the related business of Internet finance becomes more and more mature, investors’ requirements for the platform will become more and more refined. Therefore, in order to better capture the hearts of new and old customers, Tuandai should not only consider safety issues such as compliance and operation, but also consider how to improve consumer services on the platform. However, the existing factors such as high fees and the problem of product conversion also affect the choice of platform for some investors. In order to solve these problems and accelerate the development of enterprises, tuandai network still needs to take action.
The storm continues, how should the group loan network cleave the waves, set sail?
More than 5,000 P2P platforms have exploded in less than three months since the Internet finance industry entered the stage of strict regulation, causing panic among P2P industry insiders. In addition, the continuous problems of the tuandai network have increased the development pressure of the platform. If it wants to restore its former combat effectiveness, it needs to take the appropriate medicine.
On the one hand, improve the risk control system, improve the “sense of security” of investors. In this year’s explosion of thunder, many investors are not spared, heavy losses, the trust of P2P platform is plummeting. Therefore, how to recover the trust of investors has become one of the urgent problems for enterprises to solve. Therefore, the group loan network should constantly improve the risk control system, increase the output of artificial intelligence, big data, block chain and other advanced technologies, and constantly develop and build a more rigorous risk control model, so as to improve investors’ trust in the platform.
In addition, upgrade the operation mode, improve user consumption experience. Although the existence of liquidity charge can effectively reduce the number of consumers’ free circulating funds and improve the profits of the platform, it also indirectly reduces the consumption experience of investors. Tuandai can reduce or eliminate this cost by upgrading its operation mode, and the revenue model with small profits and quick turnover will be more popular with investors than the one with huge profits. Within the limits that can be developed, the safety factor that raises consumer and consumption experience of multi-azimuth, ability holds investor better “heart”.
On the other hand, strengthen the professionalism of the team and reduce operational risks. For P2P platforms, bad debts not only come from customers, but also from the operational mistakes of relevant staff. At present, tuandai network in addition to online business, there are stores for manual audit business. Under normal circumstances, manual audit error probability is also relatively large, it can be seen that the operational risk it faces is not small. Therefore, tuandai needs to constantly improve the professionalism of the team and gradually transfer the manual audit business to online audit. Only by constantly improving the business and better reducing operational risks can the enterprise be more stable and sustainable operation.
Finally, we must descend before the wind and join the great river we have just bought. Judging from a number of policies adopted in the past two years, it is a long-term trend of the development of China’s financial industry to break the rigid exchange rate, as well as an inevitable development trend of tuandai in the future. Therefore, tuandai network should follow the trend of The Times, break gangdui, as soon as possible into gangdui huge river. Only in this way can the relevant pressure be released and the enterprise be able to operate healthily.
Overall, the group loan network in the process of development, both joy and bumpy. Its dare to dare to fight the spirit and grasp the opportunity, so that the group loan network completed the transformation. But its existence deduction cost is high, insist to just add and so on problem still influence enterprise development. Therefore, tuandai also needs to develop operational strategies in line with consumer demand, constantly improve its own internal construction, and provide a better service platform for investors. Only in this way can tuandai network stabilize its market position and go further and better.
Article/Liu Kuang public account, ID: Liukuang110, this article first leek finance