What is the operating strategy for compliant cash loan products?

At this year's 315 Gala, 714 high-interest loans were the finale news, and usury became a hot topic again. Basically, 90% of usurious loans are for a period of 7 days, and the annualized interest rate exceeds 1500%.

There will be no long-term operating investment in usury products, and their users are relatively simple and direct. They download the APP hoping to get the money as soon as possible. It is an absolute rigid demand, and as long as you are willing to lend money, there will be a high enough conversion rate and loan amount. The front-end customer acquisition is simple and crude, and users are purchased from Daichao and other platforms.

The usury loan platforms are products that are put on the shelves for short-term survival and do not require investment in sophisticated operations.

Buy users -> simple risk control -> loan -> violent debt collection -> delisting (one cycle is about 6 months)

This wave of crackdown on usury will cause some users to flock to compliant cash loan platforms, which can be regarded as a wave of dividends for cash loans in 2019. Today we will talk about cash loan user portraits, product design, customer acquisition logic and user growth system.

The most basic requirement for a compliant cash loan platform is that the lender is a financial institution, the comprehensive loan interest rate does not exceed 36%, and there is no such phenomenon as interest rate cuts and violent debt collection.

User Profile

1. Temporary loan

Young white-collar workers or people with stable jobs usually have no shortage of money. Occasionally, they may be short of 10,000 to 20,000 yuan due to personal relationships or other unexpected situations. They are too lazy to borrow from relatives or friends, so they find a cash loan platform to temporarily borrow money for a few days and will quickly pay off the loan.

• Platform selection: They are sensitive to loan amount and interest rate, and prefer platform loans from financial institutions.
• Borrowing frequency: The frequency is not high and the cycle is not too long, but the loyalty to the platform is high.

1. Moonlight Clan

They are mainly young people born in the 1990s, who have low salaries that are never enough to spend. After receiving their salary, they will pay off their loans immediately, or choose to make equal monthly installments of principal and interest. This group of users are not sensitive to interest rates and only calculate whether their salary minus expenses is enough to pay off the loan next month.

• Platform selection: Most of these users are white household or have incomplete credit data, so financial institutions cannot grant them credit, and their credit card limits are relatively low. They are the preferred users of Internet cash loan platforms.
• Borrowing frequency: There are always many days when you are short of money. The key is to cultivate users' financial habits and increase their reborrowing rate.

1. Credit card holders

After the popularity of credit cards and cash loans, this group of people always have hundreds of thousands or more in loans. They need to remember to go to the cash loan platform to renew the loans on every credit card repayment date. They have to borrow money from here and there every month, and a large proportion of their salary is used to pay the interest, but the users are unaware of it. They cannot control their financial situation, and the debt snowball keeps getting bigger and bigger.

• Platform selection: We will carefully select platforms with large credit limits and low interest rates. Of course, many users cannot clearly calculate what the annualized interest rate is, so they will apply for many platforms.
• Borrowing frequency: Many times every month. Once the credit card or platform reduces the limit or clears the loan, repayment ability may become a problem.

1. Lao Lai Customer Group

The industry supports millions of deadbeat users, who create groups every day to exchange experiences, find new opportunities, and teach classes. Once a platform has a loophole, these users will quickly spread the news like wolves.

The card maintenance, mobile phone number, and income flow are sometimes used to make normal repayments on some cash loan platforms, and then large loans are taken out on multiple cash loan platforms at the same time, and then the mobile phone cards are thrown away and the person disappears.

Business Process

360 Jie Tiao is a lending platform under 360. In recent years, its development speed and scale are in the first camp among its peers. After its successful listing in 2018, its development momentum has been even stronger. 360's initial traffic was mainly diverted from 360's platforms, and it also purchased traffic from major platforms such as Toutiao, and directed unwanted traffic to third-party loan platforms. The overall traffic operation effect of the platform is relatively good. Today we will introduce the business process with the product of 360 Jie Tiao.

1. Download the APP and register

Downloading and registering are relatively simple and user-friendly. There is no need to set a login password. Just enter the SMS verification code each time, and users do not need to remember the login password.

1. Application Process

(1) The first step is to set a transaction password. The 6-digit password is consistent with the bank card password policy.

(2) Face recognition

Liveness verification uses a third-party SDK, a technology that is currently being developed by Tencent and Alibaba, and is relatively mature.

(3) ID card authentication

The front and back of the ID card are photographed and identified. This step does three things: first, verify the authenticity of the applicant's identity with the public security network, second, retain your ID card photo information, and third, prove that the original ID card is in your hands.

(4) Card Binding

Card binding is the most core step in the user application process. Users need to enter the mobile phone verification code reserved for the bank card to perform four-factor authentication.

(5) Operator certification

In this step, you need to enter your mobile phone number and operator service password. The crawler in the 360 ​​background will go to the operator's website to crawl your mobile phone call records. You need to enter the SMS verification code when the crawler logs in to the website.

The 360 ​​platform will obtain your data:

1. Phone contacts (the APP will ask you whether you want to authorize).
2. All your call records on the operator's website.

(6) Activate credit

Complete all the application steps, a total of 6 steps, which is relatively simple and easy to use.

After completion, the system will automatically send a red envelope, which can be shared with friends. This is the same fission routine used by apps like Ele.me.

During the credit limit calculation process, you can share gift packages with friends, and you can also ask friends to help increase the credit limit.

Fission routine:

1. Red envelope sharing;
2. Friends help increase the credit limit;
3. The invitation is polite.

1. Credit approval

The approval process will go through an automatic risk control process, which may check the credit report of the People's Bank of China, third-party credit reports, and lists, and then process these data into risk control variables. Different links will go through the decision-making process, and each decision-making process may be rejected.

A small number of users will go through manual approval, and the user's risk level and limit will be approved after all risk control processes are completed.

360's approval time is too long. Generally, a mature risk decision-making process takes about one minute, while excellent products like Wanka and Dumiaozhizai can make decisions within 3-5 seconds.

1. Apply for a loan

I don't know why the approval of the quota was so slow, it only came out the next day.

Interest calculation method: equal principal and equal interest.

Annualized rate after conversion: around 20%, which is not particularly high compared with other cash loans.

1. Loan approval

Users applying for cash withdrawals need to go through a list of risk factors. If the time interval between credit granting and withdrawal exceeds 1-3 months, the user's qualifications may have changed significantly, and some data will need to be re-acquired and decisions made.

In general, the withdrawal approval rate for users within one week of obtaining credit is very high.

1. Payment

When transferring money to the bank card bound to the user, different bank cards use different payment channels for fund routing, which requires reducing payment fees and increasing payment success rate.

User growth model

The operation time of cash loans is relatively short. Compared with other Internet industries such as e-commerce, the operation routines and methods are much lower-level. Currently, user operations mainly focus on customer acquisition, activation, conversion and fission.

Compared with e-commerce users, cash loan users are much more purposeful, and their activity and conversion rates are also relatively high.

The main problem and difficulty faced by the platform is attracting new customers. The cost of acquiring customers has continued to rise since the beginning of 2018, and the quality of users has also been declining. Therefore, fission sharing is a method of attracting new customers that cash loan platforms pay more attention to.

1. Organic traffic

The natural traffic is most likely to come from two types of people. One type is the group of deadbeat customers who are always looking for money. The new platform will spread quickly in the group, and everyone will study what qualifications and information the platform requires, and what kind of customers are easily accepted by the platform.

Another type of users who are in urgent need of money are looking for cash loan platforms on search engines and the like.

There is an obvious characteristic among cash loan users: the quality of users who actively come to us is biased, especially the first wave of users after the platform goes online. Our experience is to reject all of them in the initial stage and accumulate list data.

If it is a licensed financial institution, a listed company or a platform with a certain brand awareness, the natural traffic will be much better. After the platform operates stably, it will have good natural traffic relying on products, reputation and brand.

1. We Media Operation

Frankly speaking, I haven’t seen any cash loan platform that is doing well in self-media operations yet. I don’t know if people just don’t pay attention to it or are unwilling to invest resources in it.

Currently, almost no one is doing the conversion of self-media such as Zhihu and Douyin, and only public accounts on various platforms have made relatively limited investments.

• Event operation: holiday activities, hot spots, birthday draws, member day draws, etc., require more new ideas, and all activities can bring more or less traffic.
• Content operation: popularize financial knowledge, financial management knowledge, product introduction, personal credit and other content.
• Recommended area: dedicated to fission, prepare prizes and share templates.
• Welfare operation: prepare more small benefits to make fans feel that there are many discounts and increase conversion.
• Function: It can increase fan stickiness and differentiate operations from APP.

1. Purchase traffic

Purchasing users is now the mainstream way for various platforms to acquire customers, through promotion in major app stores, ASO, and loan supermarket entrance diversion.

Placing information flow ads or SEM on headlines and other platforms is also a common way to divert traffic.

Advertisements in the information flow are popular APP opening screens or banner ads. According to the attributes of the target population of the cash loan platform - middle- and high-income, highly educated, white-collar workers, male proportion >70%, etc., and industry characteristics - professional, authoritative, and formal, consider choosing news apps such as Toutiao, NetEase News, Phoenix News, and Yidian Zixun; social channels such as Weibo and WeChat, and other high-quality media channels that gather a large number of highly educated, young, and male-oriented groups.

When interacting with others, pay attention to using welfare as an advertising entrance. After users click on this entrance, they will be presented with various interesting interactive activities, such as a big turntable, smashing golden eggs, scratch cards, shaking dice, etc.; users will be given raffles, interest-free coupons, interest reductions and other benefits.

Interactive advertising can closely integrate advertising content with user interests and benefits, allowing the advertisement to ultimately reach users in the form of "monetary rewards", thereby "tempting" users to significantly increase conversions; in addition, interactive advertising is rich in form and full of fun, which makes it easier to attract user attention and encourage interaction.

There are too many loan sharks in the market now, and many of them are inflating their traffic. The big loan sharks are Rong360, Cash White Card and other large traffic providers. In the past, they used CPS to settle fees, but now the strong loan sharks settle based on CPA and require prepayment. The user conversion rate, quality and overdue rate are all getting worse.

1. Fission

The more basic routine is to return N yuan for inviting registration, N+M yuan for successful credit, and X% for successful loan.

(1) Invite and receive cash

• Cash rewards after registration.
• Receive a cash reward.
• Successful loan, cash reward.

(2) Earn money through partnership: 30% interest income for the first installment

(3) Exclusive recommendations

1. The creative content of cash loan platforms should be closer to life scenes, so that users can feel real and involved, thereby improving conversion rates;
2. You can use words and scene pictures that are more likely to resonate and tempt users, such as saving money, discounts, red envelopes, etc., to stimulate users to borrow money;
3. Appropriate news-like headlines can be used to reduce users’ aversion to ads and attract them to click (e.g. Be careful! Pay attention to these matters when applying for a loan for the first time!);
4. In addition, the financial industry has many restrictions and strict controls on channel distribution. Platforms should ensure that they have complete qualifications, their products are compliant and legal, and their materials must strictly prevent violations of the rules.

summary

For cash loans, first of all, we must understand what users care about more. The only demand of users coming to the platform is to be able to borrow the money they need. First, the approval rate must be reasonable, and second, the credit limit must be sufficient. The biggest reason why users do not borrow money after having the credit limit is that the credit limit is not enough, followed by the stability and ease of use of the platform.

The operation team must ensure that the product has sufficient exposure, whether it is the application market, SEM, information flow, or any website, forum, post bar, or even advertisement, to let everyone know that you are a compliant, low-interest, and convenient loan platform.

Fission, fission, and fission are very important. Users are encouraged to actively recommend their friends and users are induced through methods such as increasing credit limits, discounts, and cash rewards. Improve retention and user stickiness. We are not an e-commerce company. A user borrowing money once does not mean that he needs to borrow money every day. Moreover, after borrowing money, the user may not use our APP during the repayment period. The impact of operations on these users is relatively limited.

Source: Thunderbird Community