Internet Banking Investment Is Approaching

The reporter found that LendingClub's subscription mail was very confusing to people's minds: "if you want to borrow money, you can find borrowers in a few minutes. They are just like you, and now they are willing to invest in you and your future."

Is there any reason to refuse? Last Thursday, the largest P2P platform in the US was listed on the NYSE, opening 67% on the first day.

Such performance has also given many similar Internet financial companies a stimulant. The purpose of these companies is that even if you have only a few hundred dollars in spare cash, you can pursue high yields, though not as high as lotteries, but at least the winning rate is much higher.

This game rule applies to Chinese as well. For many Chinese who are accustomed to Haichao, the era of "sea Investment" will soon come.

　　 Internet Full bloom of financial management

Because of the quantitative easing policy over the past few years, the interest rates on bank deposits are almost zero in both the US and Europe. A consultant from a third party financial management company told reporters that many European and American clients managed to win inflation only if there was a steady financial gain of around 2%.

However, thanks to all kinds of Internet financial companies that have emerged in recent years, individual investors with financial needs can shout higher prices. As long as you sit at home and open the Internet, you can find a series of low investment and concise investment websites in a few minutes.

For example, it monopolizes the LendingClub and Prosper of more than 95% of the P2P Internet lending market in the United States. These two platforms match the information of individual borrowers and individual borrowers by selecting credit ratings, so as to complete the loan and collect fees respectively.

From the profit model, LendingClub is totally different from traditional banks. Traditional banks earn a profit margin, and LendingClub is more likely to make money by matching information. Borrowers can borrow at least 25 dollars, even if the default rate and commission are reduced. There is also a 5%~8% yield.

In the field of real estate investment, there is a website of Fundrise, which is a public auction website for everyone, and there are also RealtyMogul, RealCrowd and Groundfloor equivalent websites.

The rules of operation of these websites are that developers list the projects. Individual investors can buy shares in several projects at the lowest threshold of 100 dollars, and profit from the rent or appreciation of real estate. The annual return rate of real estate investment projects involving Fundrise is usually between 6%~10%.

In pursuit of higher returns, there are websites like Loyal3 that can buy IPO shares at the lowest price of 10 dollars, and equity financing platforms such as AngelList and Wefounder.

　　 One key order Conduct financial transactions

More and more Chinese individual investors begin to want to layout overseas financial management. Although many overseas Internet financing methods can be operated in theory, the obstacles of transnational investment make the procedure more complicated.

So, just like those websites that help Chinese consumers buy consumer goods overseas, some of the new "Hai Ping" websites are designed to help Chinese individual investors place their money in a single key.

For example, offshore investment fund registered in the Cayman Islands offshore investment finance, the company and LendingClub, Fundrise and other foreign Internet financial platform docking, through due diligence to select the above public platform products, combined into an asset portfolio for domestic investors to choose.

"Maybe there are dozens of real estate projects or thousands of P2P projects in one asset package. So in essence, our role is an institutional investor to help domestic investors invest in products. Wang Jinlong, CEO of sea investment company.

There is also a "sea crowd" who specializes in overseas property investment and public investment platform. According to its website, the company fundraising funds to invest in real estate projects in New York, Washington and other places. The single investor contribution is limited to $50 thousand, $100 thousand and more than $100 thousand.

It is precisely because LendingClub and other Internet public financing companies do not provide principal and interest guarantees, forcing investors to choose high quality debt items in the context of considering the benefits and risks as far as possible. So in 2012, many American fund companies, which provided P2P investment management services for institutional investors and individual investors, began to rise, including funds from offshore investment companies to meet the needs of P2P debt project investment management.

Palm tree consultant Chen Wen, who focuses on P2P research, said that the general pattern of P2P investment funds is to buy bulk packaged debt from the P2P platform and sell it to individuals or institutional investors. The core technology is to select high-quality debt items through quantitative analysis of a large number of P2P debt items, and obtain the level of return that exceeds the average expected return of the P2P lending market.

　　 Risk, risk

However, whether at home or abroad, the level of asset risk of P2P fund platform still depends on the P2P platform itself.

In the case of LendingClub, investors are actually unsecured creditors of the P2P platform, rather than the borrowers' creditors. Therefore, when a loan default occurs on the platform, the lender will bear the loss of investment alone, and LendingClub will not give compensation. This is also very similar to brokers, who receive a commission matching transaction, but will not be held responsible for the loss of your stock investment.

A former Federal Deposit Insurance Company insider in the US also expressed concern about the possible outbreak of the subprime mortgage crisis in the P2P industry.

LendingClub's revenue in the first few months of this year has increased by 123% over the same period last year. This investor excited number is not a good sign for some risk sceptics.

"I have experienced several financial bursts, including 2008, and the common pressure of these bubbles is the pressure caused by the excessive growth of loans. Credit standards will eventually be relaxed, which in turn will lead to more loans, but forget how to return them. A financial market insider said, "there is another feature in the 2008 financial collapse that applies to LendingClub, the illusion of using advanced computer algorithms to protect investors from risk."

In addition, the US will gradually tighten its monetary policy into the interest rate cycle next year, and the attractiveness of LendingClub's high interest rate loans will gradually decrease. At the same time, some possible Black Swan events will also lead to a huge loophole in its credit system.

A personal investor who had invested in the P2P platform for a long time has summed up several practical points to avoid risks, including two Internet financing channels that are almost suitable for all low thresholds.

First, the best protection net for newcomers is investment diversification, making full use of the advantage of the amount of US $25 to diversify and diversify investment. This will minimize the impact of the breach. The second is to look at the details of loan history on the third party website that analyzes the history of LendingClub and Prosper lending to help increase returns.