When the traffic giant starts to make a fortune, it must be lending.
Editor’s note: This article is from the WeChat public account “investing in the network” (ID: China-Venture), author Tian Mu, editor Han Honggang.
The domestic Internet companies with their faces are all lending. As a result, this generation of young people suddenly became the most dominant in the history of money, but also the most indebted generation.
The “Double Eleven” two years ago was a Saturday. When most people still made up for the big rush in the early morning, Chen Hao had already rushed to the Beijing Broadcasting Tower Hotel in Jianguomen from the home of Wangjing. There, there are more than 40 cash loan executives from all over the country waiting to hear him lecture.
The two-day cash loan training fee is nearly 10,000 yuan. Chen Hao is the opening instructor. His class is the most wanted by the students. At this time, only 20 days from the regulatory release of the “12.1” document, people have already felt a bit nervous in advance, and are eager to know the industry’s opinion on supervision.
Chen Chen, who was then CRO (Chief Risk Officer) and head of the credit business, gave his judgment. He believes that cash-selling products with an annualized interest rate of more than 36% will not be regulated. This means that a rude cash loan model that makes money from ultra-high interest rates will be difficult to survive.
Chen Chen’s judgment was quickly proved.
On December 1, 2017, the Central Bank and the China Banking Regulatory Commission issued the “Notice on Regulating the Reorganization of the “Cash Loan” Business” document. As Chen Yu’s judgment, the interest rate of cash loan products is limited to 36% annualized. Crazy for more than a year in the cash loan industry, stagnate overnight.
When the bosses of cash lending companies began to struggle for survival, this time node at the end of 2017, for the Internet giants such as “TMD”, has just blown the charge.
In October 2017, the US group launched the “Mei Tuan Living Costs” credit loan product; Didi received a payment license at the end of the same year, and the financial sector was upgraded to the Financial Division in the next year; the byte jump was in today’s headlines. And the buzzing loan advertisements earned a lot of money.
The golden age of cash lending has not come to a close, and a new wave of Internet companies has rushed to grab the baton from it.
Today, on Chinese smartphones, whether it’s chatting with WeChat, brushing and shaking, watching Weibo, or using Taobao shopping, Didi taxi, Ctrip booking hotel, even in the newly opened Xiaomi, Huawei, Internet credit products are everywhere on OPPO phones. And these are connected in different industries.The net giants finally have the same business – lending. The official statement is that consumer finance.
The starting point for all of this is in 2009. That was the first year after the financial tsunami. The Chinese economy needed to rely on expanding domestic demand, and banks could no longer meet the increasingly diverse financial needs.
From the first time in 2010, Ali Xiaoyu issued the loan to Taobao merchants. By 2014, Jingdong Baizhu was launched, and in 2015, Tencent, Baidu, 360, Xiaomi and other companies successively launched their financial lending products until 2017. The entry of TMD in the year; from loans to merchants to loans to individual consumers, from e-commerce with clear scenarios to APP traffic portals without clear scenarios, domestic Internet companies have entered financial, pioneering, layout, and harvesting for ten years.
The label of Internet people, in addition to “changing the world’s code farmers,” has since added another “Venice merchant” written in Shakespeare’s book, except for data and traffic provided by every ordinary user to the Internet giant. In addition, there is real money.
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In 2009, the world was still in the aftershocks brought about by the financial tsunami, and China’s small and micro enterprises became the support for China’s steady economic growth. They account for 95% of the total number of companies, contribute 60% of GDP, half of the tax revenue, and also solve three-quarters of urban employment.
However, their growth has gone wrong.
Business expansion requires funding, and loans are the best option at the time. However, banks are averse to risk. Small and micro enterprises have small business volumes, lack of financial data, unregulated operations, and weak anti-risk capabilities. Even though banks have set up SME credit departments at that time, it usually takes two or three months or more from the time of applying for loans to final approval – they are already lucky, and economist Li Yining said that year. Small businesses receive only 8.5% of loans, while micro-enterprises are even lower.
The government began to introduce policies to solve the financing problems of SMEs. The National Development Bank also invited Ulrich Weber, a senior bank consultant at the then IPC company in Germany, to open a small and micro enterprise loan business for some Chinese city commercial banks. Guidance and staff training.
At that time, international commercial banks generally adopted two modes in the pre-lending investigation of small and micro enterprise loan business: First, using the scorecard technology implemented by Wells Fargo, the company to score credits and serve as an important basis for loan disbursement; The other model is the information that IPC advocates to acquire customers by training loan officers. When Weber provided training for Chinese banks, he was explaining this model.
The first model saves more operations in the US where financial data and credit assessments are more complete.