The risk of Internet finance has dropped sharply. The number of P2P online lending institutions in operation nationwide has gradually decreased from about 5000 during the peak period to zero in mid November this year. On November 27, Liu Fushou, chief lawyer of the China Banking and Insurance Regulatory Commission, said in an open forum.
According to the data released at the CBRC news conference on September 14, 2020, by the end of August 2020, there were 15 online lending institutions in operation nationwide, down 99% compared with the beginning of 2019; the loan balance decreased by 84%; the number of lenders decreased by 88%; the number of borrowers decreased by 73%; the number of institutions, loan scale and the number of participants had decreased for 26 consecutive months.
The rectification of the online lending industry began gradually from the end of 2017. In January 2019, the regulatory authorities issued the opinions on the classified disposal and risk prevention of online lending institutions (jjbh  No. 175, hereinafter referred to as No. 175 document) and proposed that online lending institutions should return as much as possible, and close down. At that time, from the perspective of the industry, this paper also pointed out the possible direction for the transformation of the online lending industry, that is, to obtain the business license qualification of the network small loan or consumer finance company, and become a lending platform.
In the process from 1 to zero, more provinces are accelerating the clearance of online loan platforms within their jurisdiction. On November 9, the local financial supervision and Administration Bureau of Shaanxi Province announced that the latest number of P2P institutions in the province was zero. Recently, the office of the leading group for risk prevention and resolution of online lending industry announced that the seventh batch of two online lending platforms in the province voluntarily withdrew and declared that the online loan business had been settled.
According to incomplete statistics of public information, from October 16, 2019 to now, at least 19 provinces and cities have publicly announced the total ban on P2P business, and dozens of provinces have disclosed the clearing notice. Senior practitioners of a financial technology platform listed in the United States in East China estimated that only 1% of the platform cleared online lending business and completed the transformation, only a small number of platforms can survive by relying on the strong strength of shareholders.
Who can survive
Whoever transforms early will survive. The transformation of the above-mentioned platform business people in East China refers to that the former platform mainly engaged in online loan intermediary matchmaking business has turned into a financial technology platform, which provides risk reserves through cooperation with banks and other institutions, or simply relies on the technical output of risk control and customer group operation to cooperate with institutional funds to help loan to earn profit sharing or business income.
Recently, financial technology platforms listed in the United States, such as Xinye Technology (paipaipai loan), Jiayin Jinke (you and I loan), 360 Digital Technology Co., Ltd., have successively disclosed the clearing of P2P business. At the same time, the assets of these platforms from licensed financial institutions such as cooperative banks and trust have reached nearly 100%, and these businesses have gradually contributed most of the revenue.
There are three modes of loan assistance business. One is the purest mode, which is also known as diversion mode. The platform side only provides risk control data without increasing credit, and outputs it to the institutional capital side; the other is that the platform side obtains users through various scene channels, conducts preliminary screening, and classifies the labels such as joint venture product quality, credit record and scene consumption preference, and then gives them to the institutional capital side At the same time, the platform also needs to pay a certain proportion of margin, that is, financing guarantee, to share the risk with institutional investors; the third is the joint loan mode understood in the market, in addition to the platform sides technology output, it is also one of the financing parties, which can also be understood as a risk sharing. In addition, in the process of loan assistance business, the platform will generally undertake the functions of customer operation and overdue collection.
In this process, we can see that the head platform, especially several financial technology platforms listed in the United States, have financing guarantee licenses. (financing guarantee license) is not necessarily the standard configuration of the platform, but with the license, the platform side will be more legal and compliant to carry out loan assistance business with institutions, on the other hand, it will be easier to cooperate with institutions. Wang Shiqiang disclosed that for risk control, the bank will focus on the financing qualification and strength of the platform side, so as to effectively reduce the risk of overdue bad debts of loan assistance business while standardizing the business.
In fact, judging from the recent three quarterly reports released by China Financial Technology Corporation, it is the general trend that many companies continue to make efforts in the consumption field during the epidemic period and cooperate with financial institutions to expand business, which has also led to the recovery of performance.
According to the financial reports of China Financial Technology Co., Ltd., as of the end of the third quarter, 360 digital technology has cooperated with nearly 100 financial institutions, resulting in a transaction amount of 66 billion yuan, an increase of 17.9% compared with the same period in 2019, and revenue of 3.7 billion yuan, a year-on-year increase of 43.4%; Xinye technology has contributed to a loan amount of 17 billion yuan, a revenue of 1.793 billion yuan and a net profit of 596.9 million yuan, and the source of funds of the platform has all passed the machine It has successfully connected with more than 50 licensed financial institutions such as banks, consumer finance companies and trust companies.
In their view, first, under the strict compliance pressure of commercial banks Internet loan management measures and new regulations on small online loans, the cooperation between institutional investors and financial technology platforms has become increasingly strict; second, most of the cooperation between banks and other institutions and the platform side is the second mode introduced by the above platform people, that is, priority / inferior structure + financing guarantee Mode, which puts forward high requirements for the platforms capital strength, risk control and operation and other technical capabilities.
After the platform transformation, first of all, there is a new identity change. The assets and logic of the loan assistance platform and the online loan platform are completely different, which has become the focus of the platform business transformation. In the opinion of the above-mentioned East China platform, one department that did not have before is the institutional capital cooperation department, as well as the supporting product design and business innovation capabilities of the institutional cooperation departments. How to expand channels to obtain lower cost funds and better assets is the most important.
Another problem is how to expand new users and how to retain and transform some old customers? The reporter of Securities Times has noticed that it has realized the retention and transformation of old users through self built scenes and membership system, and the platform with business foundation has preempted the opportunity. At the end of the third quarter of this year, Lexin promoted a 69.6% year-on-year increase in the total number of users through various new services such as Le card and Lok Hua card. At the same time, it opened up online and offline consumption scenarios, and the total number of orders reached 84.4 million, with a year-on-year increase of 49.9%.
The organization of loan assistance business is completely different from that of online loan business. The former is funded by financial institutions such as banks, while the latter comes from individuals. The staffing of operation and customer service is completely different. In Wang Shiqiangs view, this means that the platform does not have a flow. For example, for the proportion of margin, some platforms only need to pay 1%, while some platforms need to pay 10%. This has nothing to do with the large and small scale of platform traffic, but depends on the credit qualification of the platform, such as the loan scale of the main body strength, overdue rate and post loan management ability. In his opinion, although the current performance is getting better, it is difficult to say that the platform which used to be the main business of online loan business has successfully turned around, because it will take a cycle to comprehensively test the capital scale, risk control level, operation ability and post loan ability of the platform. Similar to his view, the above platform business personage thinks, the market is still accelerating shuffling, and the effect of constant strength of the industrys top strong will be more obvious. P2P officially quit the stage of history. Source: Securities Times editor in charge: Yang Bin_ NF4368
The organization of loan assistance business is completely different from that of online loan business. The former is funded by financial institutions such as banks, while the latter comes from individuals. The staffing of operation and customer service is completely different. In Wang Shiqiangs view, this means that the platform does not have a flow. For example, for the proportion of margin, some platforms only need to pay 1%, while some platforms need to pay 10%. This has nothing to do with the large and small scale of platform traffic, but depends on the credit qualification of the platform, such as the loan scale of the main body strength, overdue rate and post loan management ability.