What is the impact of Internet finance?

At the 12th Internet Conference held on August 13, the Internet finance session was very lively. Xie Ping, deputy general manager of CIC, gave a keynote speech at the forum, talking about his influence on the Internet as a traditional financier. Financial understanding. He summed up the six major directions of today's Internet finance (sorted out by Sina Technology):

——Third-party payment. At present, the third bank has issued more than 250 payment licenses, of which 97 are actually engaged in Internet payment companies, and there are more than 150 prepaid card companies. The total payment volume of Internet payment companies is about 6 trillion, accounting for 0.5% of the total payment volume.

——P2P lending model. For example, companies such as Renrendai are actually clubs composed of N individuals, taking advantage of information asymmetry to borrow money from each other among club members. The core of P2P lending is to use the information asymmetry among hundreds of millions of people on the Internet to allow them to receive each other and reduce the information asymmetry to infinitesimal.

——Ali Small Loan Model. By analyzing a large amount of information on Taobao, Alipay is used to issue loans to everyone. This approach is completely different from what banks do, and is an automatic lending mechanism. All the behaviors of Taobao merchants constitute the pricing of their own risks, and then Ali Micro Loan sets the price according to the risks, and grants it a line of credit, which can lend at any time and repay the interest at any time. Finally, a dynamic risk pricing process is formed.

——Crowdfunding. In the United States, if a person has a good idea, he can put the idea online, let everyone invest, and then use this product to repay. Investors can earn equity by investing online. Only the United States in the world has officially passed a law that allows small businesses to obtain equity financing in this way. This method of crowdfunding is a step forward from venture capital and angel investment.

——Internet integrated sales of financial products, that is, the Yu'e Bao model. In fact, there is nothing special about selling financial products on the Internet, but Yu’ebao combines the functions of money market funds with online payment, breaking the boundaries of time and space, which is impossible for ordinary physical outlets.

—Internet currency. Internet currency may be the state where Internet finance rises to the top in the future. Now all Internet finance is only a challenge to the existing commercial banks and securities companies. In the future, the development of Internet currency will pose a huge challenge to the central bank.

Internet companies do "shallow involvement" in finance

Xie Ping pointed out In addition to the sixth point of "Internet currency", which may have a fundamental impact on the traditional financial industry, the other five trends seem to be only "superficial involvement" in the financial industry. For example, the recently popular "Yue Bao", its absorption level is only tens of billions, which is only a fraction of the trillion-level fund industry. There are numerous P2P online lending platforms with mixed quality, lax risk control, and frequent short-term loans and long-term investment. Many platforms have accumulated hundreds of millions of loans in a short period of time and then quickly fell into a redemption crisis. The loan company models that rely on e-commerce development such as Ali Small Loan are subject to financing constraints and cannot continue to expand their scale.

But the transformation of traditional industries by the Internet is an irreversible trend, and the financial industry is no exception. Internet companies that have a huge amount of user data and customer resources have a platform effect that cannot be underestimated. For example, many fund companies, insurance companies, and asset management companies have focused their attention on the Internet, expecting to cooperate with Internet giants to expand sales channels. Ali, Suning, JD.com, etc. hold a huge amount of information on small and medium-sized enterprises and merchants. These Internet platform enterprises provide loan services for small and medium-sized enterprises, which can effectively solve the problems of asymmetric credit information and insufficient guarantees that are difficult to solve in the traditional banking industry. According to the current situation, the bad debt rate of Ali Small Loan's 26 billion loan plate is only 0.8%, and the asset quality is very high. Its asset securitization project is becoming the target of competition among many securities, funds and other institutions.

Substantial intervention awaits regulatory breakthroughs

At present, the financial industry is still one of the industries most regulated by the government. Many Internet "financial" companies or "financial-like" companies can only engage in payment, For "peripheral" financial businesses such as transactions, the loan business still has not broken through the restrictions of small loan companies, let alone attracting deposits. The future development direction of Internet finance depends not only on the creation of these "barbarians at the door of the financial industry", but also on the breakthrough of traditional financial access and supervision systems.

In the traditional financial field, due to the fact that financial supervision measures are managed by institutions and licenses, and strict access models are adopted, private enterprises face many restrictive terms. Judging from the existing Internet financial model, whether Alibaba sets up an online property insurance company or does asset securitization, the partners are all licensed financial institutions. That is to say, the existing supervision methods do not provide financial institutions with Opportunity for fair competition.

If the supervision method does not change, once the Internet enters the financial field and becomes a vested interest, it is possible to form a new monopoly, that is, Internet finance defeats financial institutions, or squeezes into the market. It is only a financial enterprise of Internet finance. The overall system and framework of finance has not changed, and it is difficult to achieve the effect of innovation and change.