Internet Financial Scramble For Another Battle

What will the future development direction of consumer finance be? At present, the Internet giants are taking advantage of the vast amounts of big data they have grasped, and mining the demand and innovating the design of new products will become the trend of the times.

This year, the Jingdong mall launched a value-added service called "Jingdong white bar", providing credit service for the high-quality Jingdong membership to "first consume, then pay" in the Jingdong mall.

Recently, Jingdong senior director of consumer finance business Xu Ling pointed out: "the future consumer finance will be deployed in expanding user coverage and expanding consumer scenarios, and focusing on mobile terminals."

Coincidentally, Baidu, Alibaba and other Internet bigwigs are also making efforts in consumer finance.

In September 21st, Baidu financial joined hands with the trust industry chiefs, CITIC Trust, China Film Corporation and Germany Heng Law Company jointly launched the "100 Hair Show" movie mass consumption Internet service platform, exploring the new Internet financial business mode of "consumer congregation + Movie + trust".

The phasing of Tmall was also launched in July of this year.

After the layout of the Internet financial infrastructure, the Internet giants began to march towards consumer finance.

In recent years, although China's consumer financial market has made rapid progress, there is still room for further development.

The central bank statistics show that in 2013, consumer credit accounted for only 15% of the credit assets of banking industry, while consumer finance accounted for only 3% of consumption credit.

Consumer financial market is undoubtedly a blue ocean to be developed.

In an interview with media coverage, Xu Ling put forward the concept of creating financial products and increasing data into thick data.

In the era of consumption change, mobile phones, computers, cars and so on have changed from durable goods to "fast moving consumer goods". Jingdong needs to be a financial consumer goods in the consumer finance field, providing financial services for these fast consuming industries, and pforming big data into thick data analysis, so as to provide users with more accurate financial services.

Thick data analysis includes not only user consumption records, but also deeper understanding of users through consumer trajectories.

Jingdong finance analyzes the data of user purchase and the time of decision making, so as to find out the different demands of consumers on consumer finance.

Yu Fenghui, a financial commentator, once wrote that at present, the biggest impact of Internet Finance on traditional financial and banking businesses is the settlement payment platform, financial management and financial intermediary products.

The most important core business of the financial industry and banking industry, asset business, has not been overblown by Internet finance.

In his view, "Jingdong white stripes" out of the world can be said to be the Internet financial to financial credit assets in the field of signs.

"This internet financial product, like a sharp dagger, directly enters the heart of traditional finance and traditional banking main business, and directly impacts traditional bank's credit card business".

After the initial development, the development of "Jingdong white stripes" began to advance.

Jingdong financial released data show that "Jingdong white strip" on-line for half a year, promoting Jingdong mall sales growth, bringing more convenient shopping experience for users.

The number of monthly orders increased by 33% after the use of IOUs, while the monthly consumption increased by 58%.

Of the users, 55% used installment services, and the installment price of goods (the average purchase amount of users) was 50% higher than that of non white users.

Not only Jingdong, but also Baidu is keen to catch the business opportunities extended by "consumption + finance".

Zhang Zhenghua, general manager of BaiduPay, recently said that in the era of Internet finance, consumer finance should have new annotations, that is, not only "borrowing money and consumption", but also "making money while making money". At the same time, with the efficient and convenient Internet, investors, financiers, producers and consumers will win a win-win situation.

On the way of Internet finance to develop consumer finance, the industry pays more attention to how to control credit risk.

It is understood that the launch of "Jingdong ious" service is based on a large number of high quality customer data and consumption data accumulated by Jingdong. Through the user's consumption records, distribution information, return information, shopping evaluation and other data, risk rating is established, and Jingdong's own credit system is established.

In fact, some analysts believe that the "Jingdong white" products completely subvert the passive credit evaluation and credit system of traditional banks.

Xu Ling told the first financial daily: "Jingdong white strip" has only six months since the beta test, and the current bad debt rate is far below the level of similar financial services.

Jingdong financial through the in-depth analysis and understanding of consumer and financial data, risk rating of users' consumption records, distribution information, return information, shopping evaluation and other data, Jingdong established a set of credit system.

He further indicated that

The whole process of risk management is implemented in many aspects, such as team composition, product function, model monitoring, and so on. The Internet technology and bank risk control concept are combined to design effective credit mechanism and process for potential credit risk.

And this wind control system is created by Jingdong finance combined with its own characteristics and advantages. Jingdong finance is analyzed by user's consumption records, distribution information, return information, shopping evaluation and so on, so as to make credit rating to users.

In fact, whether Alibaba or Jingdong, initially developed the upstream and downstream financial needs based on the electricity supplier based ecosystem and provided services. After that, tailored the needs of individual users and built the credit rating system based on big data.

Specifically, Xu also said: "everyone has a high degree of consumer behavior in the Jingdong, some are heavy users, some are mild users, through the information left in the Jingdong mall, such as consumption category, frequency, and so on, and then make corresponding judgments based on various indicators of users."