Author: Zhou pure, Editor: Yang Hao, head Figure from: Vision China
Editor’s note:
In the past week, the local financial supervision bureaus of Hunan and Shandong provinces successively announced that since the special rectification of online loans, no platform has passed the acceptance test completely, and all P2P online lending institutions that have not passed the acceptance test will be fully It is banned. The strong wording of the announcement triggered a shock in the industry.
This may be a landmark event.
When the online lending industry is struggling to wait for the pilot program, the ban on announcements is tantamount to a cold water, ruining their little hope. Will there be more provinces taking similar actions next? Becoming the most concerned topic of online loan practitioners at the moment.
The Director of the Financial Markets Department of the Central Bank, Zou Yu, mentioned in a recent media briefing that he will strive to basically complete the stock risk recovery in the online loan sector in the first half of 2020. This also means that the industry has entered the countdown: The head platform has tightened the compliance transformation, and the small and medium-sized platforms are automatically eliminated.
In a few short years, the online lending industry has gone from being a highly sought-after innovation to running out of the way, and the thunderstorm continues until it is cleaned up. Among them, which ones have problems?
“Prisma” recently talked about an entrepreneur who was the first to engage in the development of online loan system. He witnessed the whole process of the industry from booming to decline. He used the technical vision to re-enter the network loan industry from the very beginning with the original sin, the early lack of supervision of the pool of funds, for the back of the industry to bury the hidden worry.
“When the bosses of the online lending platform see the pool of funds, their eyes are bright,” he said.
The following is his self-reported original text, “Prisma” has been reduced accordingly:
“A system is online and can be operated immediately”
I entered the online lending industry in 2009. At that time, there were only two online lending platforms in China. One was Shanghai’s auction and the other was Shenzhen’s Hongling Venture Capital. itThey were just getting started, and no one realized that this thing would break out later.
I just left the company to write code, and I accidentally found a friend who found me and wanted to be a platform like online loan. I have studied it. Although the capital flow and other parts are complicated and technically demanding, it is not difficult for us. Therefore, we have helped them to make a system out of technology outsourcing.
After the completion, more and more people came to us to do the online loan system, so slowly opened the entire market. XX loan is our relatively famous customer in the early days. In fact, there were many homes in the online loan system at the time, but they did not succeed, and we succeeded. Before 2012, our system’s market share was as high as 80% to 90%.
I didn’t do encryption at the time, put the code on the open source platform, and our system was imitated by many people. In addition, in 2013, online loans began to get more and more popular. Everyone is more optimistic, and many online loan system developers are starting to emerge. At that time, the online loan business did not need to be approved for filing. As long as one system went online, it could be operated immediately, so hundreds of thousands of online loan platforms emerged.
In 2014, we developed a new SaaS system, and we can build a P2P system in one minute. Apply immediately and open it immediately, it can be put into use. This is a direction of our technology development. . Experienced the outbreak of online lending in 2015. By the end of 2016, we had really made hundreds of customers and signed contracts with us. Some system vendors say that they have done thousands of platforms. This data is impossible. There are too many fake things in it.
“See the pool of funds, your eyes are bright”
We are all engaged in technology. We didn’t understand financial stuff at first, so the financial attributes of online lending platforms are all based on customer needs. The bosses of many online lending platforms are out of the financial industry. He will tell us the needs, and we will provide them with system development as a technology outsourcing.
This involves an essential issue, and when it comes to system development in the early days, it involves online payments. The third-party payment that was involved at that time was a payment channel. Their technology gave us the concept of a pool of funds, that is, all funds can be aggregated into one total account. At that time, everyone did not think too much. The security of the fund pool, the only risk control of the system is for the online loan borrower,There are almost no risk control measures in Taiwan.
This has led to a large outbreak of the fund pool platform, which has buried hidden worries for the running tide of the platform.
When the bosses of those online lending platforms see the pool of funds, their eyes are brightening, thinking about the accumulation of funds and the transfer of funds. Who cares about risk control? Human desires are infinite, and humanity cannot stand the test.
Once, I was drinking tea with the owner of a online loan platform. During his mobile phone text message, he kept showing the sound. He showed me triumphantly: I have just paid tens of thousands of dollars. Originally, he tied the company’s bank account number to his mobile phone number and could see the investment information of the platform in real time. He can also use this fund at will.
This makes me very shocked. Isn’t this way to move money away at any time? What is the security of such a platform?
It can be said that all platforms before 2014 are almost all fund pool models.
“P2P platform has never been possible to be truly regulated”
In 2014, everyone began to realize the risks of this model. On one occasion, the CEO of an online lending platform brought us together with a responsible person of a third-party payment. We sat down and talked about it and felt that we could make a deposit. For our technology, it is nothing more than a question of who to supervise the system. For third-party payment institutions, the responsibility for supervising funds falls to them.
But in fact, there is no real motivation for third-party payment to do supervision. They just technically implement a so-called regulatory concept, that is, open another N investor account under the total account of the platform, only the investors themselves. The password can be transferred to the platform or the borrower. However, for the operators of online lending platforms, they still have the means to transfer funds from third-party payment accounts. So technically, third-party payment depository is not advisable.
After thinking about another way, let the bank do the supervision and open all the accounts to the bank. Although the bank has the functions that third-party payment, such as absorbing and freezing funds, does not have, the bank depository can not solve a problem, that is, the problem of information transparency. This piece of information is still in the hands of the platform.
So from the evolution of the entire technology, from the pool of funds to the deposit of funds,Going to the bank depository, there is no way to regulate the platform in the true sense of this evolution. In fact, to achieve true supervision of online loans, it is necessary to supervise two data: one is the data of the platform operator, and the other is the data of the deposit funds in the bank. Like a formal financial institution, its data must be reported to the country, but for the P2P industry, this is not done at all, and it is impossible.
Aware of this, we later cooperated with a local financial office to help them with financial supervision technology and developed an information publishing platform, requiring all online lending platforms in the jurisdiction to be connected through interfaces to operate their own operations. The data is uploaded to this information publishing platform; in addition, their interface data in the bank, although we can not operate, but can be queried. In this way, real supervision can be achieved.
But at this time the whole P2P industry has gone, this practice is tantamount to reinstating.
“The data from the beginning of the platform is almost always fake”
So I have always said that there are too many original sins in the online lending industry, because all platforms do not start from government supervision at the beginning, but start from the pool of funds. The unregulated pool of funds is the biggest original sin in the industry.
In addition, there are almost no restrictions on borrowers. At that time, many customers found us and said that you can help us make a few fake targets and change some data. So the data of the platform at the beginning is almost all fraudulent, but the investor’s funds are real.
For example, if a target of 1 million yuan is used, the platform will pretend to have an investment of 200,000 yuan to attract other real investors to invest, but they need to distinguish between real data and fake data. Move some hands and feet on the system and change some data. There is more to do, is to mark somewhere, let us delete the background database directly.
It can be said that in the early days of the online lending industry, the real borrowing of a platform accounted for 30% to 40%. After the concept of fund deposits came out, the situation improved slightly.
The temptation here is too big. The investors’ funds are constantly running into your account. The truth is not yours, but it is also yours, because who can you know when you turn away? Originally, you have earned a few million a year, but now you have to give you billions of dollars. How can humanity withstand such a big temptation?
“I watched a lot of people go up, and many people went on”
The stock market crash in 2015 has a great impact on the online loan industry. Because many P2P platforms lend money to listed companies and even buy listed companies, the stocks of listed companies have plummeted, causing the network chain of the online loan industry to become tense, and more and more problems have begun to emerge.
I was thinking, If the stock market can be stable at the time, the online lending industry may have a different ending. Because the industry developed over the past few years, it was the stage of the merger and acquisition, the big fish to eat small fish. But this situation did not appear. After the stock market crash, the merger was basically gone, because everyone had no money, and the stock market drained the money.
When the online loan industry boomed, we also set up a “selling water alliance”, which included the network loan system, the SMS platform, the data risk control, and the industry third-party information website. It is the upstream and downstream of providing services to the online loan industry.
By the time of 2016, everyone felt that the online lending industry had no hope and started to find another way out. Among them, a large number of people have transformed into the direction of the blockchain. Some people have returned to the traditional financial industry. Some people have switched to other industries, and basically have withdrawn from the online lending industry.
After the previous round of supervision began to investigate the data company, even the SMS partner was also required to not provide services to the online loan business, indicating that the supervision began to force the clearance.
Experienced the rise and fall of the online loan, I watched many people go up to (listed), and many people went on. Span class=”text-remarks” label=”Remarks”>(in prison). Today, the industry is finally coming to an end.
Author: Zhou pure, Editor: Yang Hao