Standing On The Consumer Financial Outlet, How Does The Banking Department And The E-Commerce Department Cooperate And Win?

All say

This year is hard, but Consumer Finance Companies has made a fortune.

Consumer finance has been developing rapidly in the past two years.

First of all, "people and", with the pformation of consumption, the public's consumption concept has also changed. Instant pleasure and willful shopping have become the consumer behavior standards of young consumers. In addition, the rapid popularization of mobile payment has gradually weakened the concept of money of the younger generation. After 80 and 90, the consumption consciousness of consumers is strong, and the consumption mode of credit consumption and advanced consumption has gradually become the mainstream.

Data show that in the seven years since 2010, the average annual compound growth of short-term consumption loans for residents has reached 33.2%, an increase of 24.8% over the 16 years, and a bright prospect for consumer financial markets.

Looking at the "geographical advantage", the bank's credit business is mainly for the white-collar with steady income. Students, blue collar and other middle class consumers who have no income or no steady income are credit blind spots. Although these consumers are small in credit line, low in personal credit rating and high in risk, there is huge demand and huge market space, which is worth digging.

At the same time, the traditional financial businesses of banks are facing more and more fierce competition. Meanwhile, the rate of bad debts is also rising. As the main source of income of banks, the company's business is affected by financial disintermediation, narrowing spreads and increasing credit risk, resulting in the decline in net income of banks, and retail business has become the main driving force for bank income growth.

However, in recent years, there has also been a downward trend in retail loan lending, and consumer finance has broad market, which has become the direction of bank pformation.

Finally, we will talk about "sky time", that is, the national policy encourages the development of consumer finance.

Since the 15 annual executive meeting of the State Council decided to expand the Consumer Finance Companies pilot to the whole country, it has issued a series of Guiding Opinions on promoting the healthy development of Internet finance, the 2016 government work report, the Internet financial information disclosure standard consumer gold blend (Draft), and encouraging private capital, domestic and foreign banking institutions and Internet companies to set up Consumer Finance Companies to launch consumer finance business.

Based on the above reasons, many banking giants and Internet giants have stepped into the consumer financial market. The banking department is the two largest factions of the consumer financial market. Consumer Finance Companies and e-commerce department have achieved net profit growth after launching the consumer finance business.

Jingdong Q2 financial report shows that Jingdong financial consumer financial business revenue increased by nearly 200% compared with the first half of the year, the Bank of China held a year-on-year net profit growth of 190.9%.

According to statistics, the current scale of consumer finance in China is approaching 6 trillion yuan, and is expected to exceed 12 trillion yuan in 2020. There is no doubt that consumer finance has arrived.

Under this draught, the banking department and the electronic commerce department have their own advantages and disadvantages in developing consumer finance business.

The banking sector takes advantage of the licence advantage to occupy most of the consumer finance, but there is also the "Achilles heel".

Banks refer to Consumer Finance Companies, which are banks and major shareholders or investors. In addition, banks can gradually expand their customers from high-quality customers to sub prime customers and expand their consumption scenarios. Moreover, banks have a lot of advantages.

First is the licensing advantage.

Since the CBRC promulgated the "Consumer Finance Companies pilot management measures", 20 of the 23 Consumer Finance Companies that have been approved have banking background, and Beijing bank, Xingye Bank and China Merchants Bank have established Consumer Finance Companies.

Because the consumption finance license is a scarce resource and the gold content is very high, it can not only get credit data directly from the central bank's credit reporting system, but also enjoy the 15% income tax policy of financial institutions.

At the same time, the banking Consumer Finance Companies operating leverage is higher than other unlicensed Consumer Finance Companies, which can achieve 8-9 times.

The second is capital advantage.

The Consumer Finance Companies pilot management law clearly stipulates that Consumer Finance Companies should not absorb public deposits. However, thanks to the strong background of the licensing rights and banking institutions, the Bank of Consumer Finance Companies can accept the deposits of shareholders and banks, issue financial bonds and enjoy peer lending. The source of funds is extensive and the cost of capital is significantly less than that of non licensed institutions and small loan companies.

Moreover, it is the advantage of the wind control system.

Based on the central bank's credit data, supplemented by large customer data of banking institutions and higher approval standards, the banking department has a relatively mature wind control system, and its ability to control wind is stronger than other consumer financial institutions, especially in the four big powers such as ICBC.

In addition, the bad loan rate of banks is relatively low. According to the CBRC news, the bad loan rate of commercial banks was only 1.74% at the end of last year, which indicates that the banking sector has strong overall control capability and the trust degree granted by users is relatively high.

Last is the advantage of offline traffic.

The layout of consumer banking, mainly relying on credit cards and consumer loans, is a long line financial giant. Traditional credit cards for consumer credit have also been developing for many years, and banks have huge financial customers to achieve the goal of rapid migration of stock users to the Internet.

ICBC's E platform is a typical example. Data show that users have exceeded 17 million in one year.

Although banks are backed by banking institutions and have unique advantages, they also have weaknesses.

First, the consumption scenario is relatively simple. Although banks are actively developing online and offline consumer scenarios, banks are mainly focused on traditional credit reporting because of their control of offline traffic flow. They do not involve vertical consumption scenarios and market segmentation. They have not yet been able to well cover the main audiences of consumer finance, nor are they experiencing good experience for users.

Secondly, the basic data of credit reporting is insufficient.

On the one hand, the accumulation of data under the banking system is not enough. The credit record of the central bank's credit rating system is still not perfect, which has increased the risk of default. According to the data of Yi Guan, by the end of June last year, there were only 380 million people in the central bank's credit rating system, but there were 880 million people covering the credit rating system.

On the other hand, as a result of the difficulty of obtaining the banking institutions, and too much reliance on channels for traffic, small banks are more than 80% of the customers who come from the channels of cooperation, and the intermediaries used by banks are complex and low in control.

Previously, the Bank of Beijing was punished by 9 million yuan by the Beijing Banking Regulatory Commission because of the fraud of intermediaries. This incident also made other peers have to alarm.

Electronic commerce department holds the dual magic weapon of scene and data, but wind control is short board.

As the name suggests, the e-commerce department refers to Consumer Finance Companies, which is backed by the giant business tycoons, such as Jingdong finance and ant gold clothing.

Although the Department of electronic commerce does not have the advantage of holding the banking system, it has the advantage of online layout with the lack of banking system.

Jingdong white stripes, ants flower chant, ants borrow chant, Tmall staging and so on are the heavy consumer financial products launched by the electronic commerce department.

The electricity business department mainly serves the network consumption habits, and the consumers with high credit consumption and advanced consumption consciousness are equal to controlling the unique traffic entrance, which makes the cost of developing consumer finance business by electricity providers is very low.

For the user experience, the consumer finance products provided by the e-commerce Department simplify the audit process, and apply for quick and convenient applications, such as Jingdong IOUs, ant flower chant, Tmall installment, etc., so the credit card user stickiness of the e-commerce department is also very high.

At the same time, Jingdong, Taobao and other large integrated electricity providers almost cover all the consumer scenarios. Therefore, compared with the banking system, the business department has the advantage of rich consumer scenarios.

Secondly, Jingdong, Alibaba and so on.

The giant has a billion base user base, huge pactions, logistics records and other data supported by the big data analysis technology, which can provide support for the wind control system of the e-commerce department, so as to give credit rating, and then give credit lines through a series of algorithms.

At the same time, the advantages of product end and user side can also provide funding sources for it.

The product end can provide funds and consumption scenarios for the Department of electronic commerce. Users can provide data, while consumer financial business can provide users with credit facilities to drive the growth of users, thereby attracting more business support.

In view of this, the closed loop construction of consumer finance in the consumer finance market is more successful, but it also has disadvantages.

First, the credit system of the electronic commerce department is based on the membership data of the platform, and the data is directly proportional to the wind control capability. But the members or new members who have less consumption are lack of data support, coupled with complicated consumption scenarios, scattered loan consumption and low access threshold. The risk control system of the electronic commerce department has a higher risk, and it is also the main target of the bad elements, and fraudulent fake incidents occur frequently.

The bad rate of the electricity supplier department is higher than that of the banking department. According to statistics, the bad rate of the double 11 is 2%~3.7% between last year.

Second, the source of funds of the e-commerce department is too single, mainly depends on the product end of the electricity supplier, and the strength is far inferior to the listed bank Consumer Finance Companies.

Learn from each other's strengths, the banking department and the electricity supplier cooperation win-win way.

With the advantage of licence, the banking department is still the main force in the consumer financial market, but the advantages of the electronic commerce department can not be underestimated.

From the perspective of future development, the banking department and the electricity supplier department are not hostile relations, but rather a practical partnership.

With the competition in the consumer financial market falling into homogenization, "small monetization and large scale scenario" will become the trend of the future. How to expand and tap the consumption scene has become the focus of all parties, and the cooperation between the banking department and the e-commerce department will achieve the 1+1>2 effect.

First of all, the consumption scenario of the banking department is relatively small, and it needs to extend the consumption scenario. However, it relies heavily on channels to expand the consumption scenario and unify the bad intermediaries.

To this end, it is the best policy to cooperate with the business department with a rich consumer scene.

Secondly, the core of consumer finance is consumers, that is, traffic and data. Imperfect domestic credit reporting system will become a stumbling block in the development of consumer finance.

The central bank's credit data coverage is not wide enough, while Jingdong financial, ant gold services and other Consumer Finance Companies belong to the private credit agencies. The data are independent of each other, and become an isolated island. No matter which data is missing, it will increase the difficulty of wind control for the whole industry.

Through cooperation with the electricity supplier department, the banking department can realize complementarity of the wind control system and effectively avoid the risk of fraud.

Finally, big data wind control, intelligent wind control and other wind control methods will be the trend in the future, but the threshold is high. Although banks have the strength of intelligent credit innovation, it is necessary to develop and put into use from 0 to 1, which requires experience and time cost.

Jingdong financial and ant finance as the representative of the electricity business department consumer financial institutions have data advantages, as well as the strength of big data wind control. It is undoubtedly the best choice for banks to cooperate with them to achieve complementarity. It can also speed up their own development process. At the same time, open technology capability can bring new profits to both sides, and the business department can also get cheap funds from banks.

In addition, the approval of consumer financial licenses has not yet been released. If the business department wants to obtain a consumer financial license, cooperation with banks is also a way to save the nation through curves.

In view of this, the business department can jointly invest in establishing Consumer Finance Companies with banks. For example, Shanghai Shangcheng consumer finance Limited by Share Ltd, jointly invested by Ctrip and the Bank of Shanghai, won a licence shortly.

To sum up, although the banking department is competitive with the e-commerce department, the core of consumer finance is traffic and wind control, and scenario is the trend of the future. The advantages of the banking system can make up for the weakness of the e-commerce department, and vice versa. Therefore, the cooperation between the banking department and the e-commerce department can maximize the benefits and jointly promote the consummation and evolution of the consumer financial system and win a win-win situation.

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