Credit card compensation business accounts for only 30% of the total

Editor’s note: This article is from WeChat public account “New Flowing Finance” (ID: xinliucaijing), author Li Mi.

In the big waves of Internet finance, the market is mourning, everyone is complaining.

But the situation of a small number of mutual gold institutions is not as bad as people think, but it is low-key in the midst of turmoil.

New stream financial exclusive news, in the first half of this year, the total loan is over 20 billion yuan, and the monthly loan is about 4 billion yuan, which is even higher than most licensed consumer finance companies.

The amount of money has suddenly increased, which is quite different from the style that has been used in the past.

Since its inception in 2015, Shanghai Weihe Information Technology Co., Ltd. (hereinafter referred to as “Huhe Technology”), the operating entity of the company, has been in a state of loss. The net loss from 2016 to 2018 was 48.54 million yuan. 56.15 million yuan and 38.43 million yuan, until the first half of this year, turned losses into profits for the first time, achieving a net profit of 45.84 million yuan.

“The shareholders have to do the task, this is to prepare for the overseas listing, the business is not working hard.” A related person close to the shackles revealed.

It seems that under the spur of capital, the company can no longer continue the “Buddha”.

Online new APP, the loan balance is about 16 billion yuan

Dianhe Technology is affiliated with the media company of the listed media company. In February 2016, it began to test the credit card compensation business “returning”, almost completely against the “province” of the Samoyed gold service, and because both founders came out China Merchants Bank has become the earliest two “investment department” players in the credit card compensation market, with ultra-low installment price as its core advantage.

But in the era of staking, low-cost credit card compensation products quickly deviated from the second line in terms of market competitiveness and regulatory policy trends, both in terms of profitability and product positioning.

In 2019, from the latest version of the APP page, credit card compensation has turned into a small entrance, no longer occupying the “C position.”

“The bottleneck of the credit card compensation business has emerged, it is wise to expand or shift to other businesses as soon as possible.” Many practitioners said. It can be seen from the financial information of several years of several technologies that the profitability of the credit card compensation business does not seem ideal.

New Flow Finance has previously reported that the current mainstream credit card reimbursement players in the market have been shrinking in size, Baoyin Xiaojin, Sina has even given up this business, and the province has also drastically reformed and transformed. Still, although it has not given up, credit card compensation accounts for the overall business.