Revealing the transformation and exit directions of 40 P2P platforms (attached table)

Since the release of the "Interim Measures" on August 24, the number of P2P online lending platforms in normal operation has been decreasing. Some of these platforms have encountered difficulties in withdrawing funds, have been involved in economic investigations, or have maliciously run away, causing adverse social impacts, but more have chosen a benign exit, closing down or embarking on the road of transformation. This article will focus on analyzing the P2P platforms that are undergoing transformation and exit and provide relevant suggestions.

Number and proportion of closed and problematic platforms

According to incomplete statistics from Wangdaizhijia.com and Yingcan Consulting, from August 24, 2016 to the end of April 2018, among the suspended and problematic platforms, the proportions of suspended platforms, platforms with difficulty in withdrawing cash, platforms that have run away, platforms that have transformed and exited, and platforms involved in economic investigation were 66.41%, 18.34%, 11.38%, 3.10%, and 0.77%, respectively.

It can be seen that the vast majority of P2P online lending platforms chose a benign exit, with the proportion of P2P online lending platforms that ceased operations or exited through transformation accounting for 69.51%. There are also some P2P online lending platforms that exit maliciously. The two main ways of malicious exit are difficulty in withdrawing cash and running away. The proportion of platforms that exit due to economic investigation intervention is relatively low.

Transformation and exit platform analysis

1. Transformation and exit platforms are concentrated in Beijing, Shanghai and Guangzhou

According to incomplete statistics from Wangdaizhijia.com and Yingcan Consulting, from August 24, 2016 to the end of April 2018, there were a total of 40 transformation and exit platforms, concentrated in three provinces and cities: Beijing (6), Shanghai (10), and Guangdong (8), with a total of 16 in other regions.

There are 24 companies in Beijing, Shanghai and Guangzhou, which exceeds half of the total number of platforms that have transformed and exited. Beijing, Shanghai and Guangzhou are the three most developed regions in my country's P2P online lending industry, with a large number of P2P online lending platforms. Moreover, the financial industries in the three places are relatively developed, and the transformation directions of the transformation and exit platforms are mostly related to the financial industry.

2. Most of the platforms that have exited the transformation are privately owned

P2P online lending platforms can be divided into listed, venture capital, state-owned, banking and private sectors based on their background. Among the 40 transformation and exit platforms, there are 2 listed companies, 1 state-owned enterprise, and the remaining 37 are privately owned.

The majority of the platforms that have transformed and exited are those with a private background, while the number of P2P online lending platforms with strong backgrounds that choose to transform and exit is relatively small. On the one hand, most P2P online lending platforms with a private background are relatively small in size and are more likely to turn around and exit; on the other hand, P2P online lending platforms with strong backgrounds such as listed companies are relatively large in size and have certain advantages in financial strength, risk control technology, etc. Therefore, a considerable proportion of platforms choose to continue to deepen their roots in the P2P online lending industry rather than transform and exit to engage in other industries.

3. Most CEOs of transformation and exit platforms have financial backgrounds

Among the 40 platforms that have transformed and exited, the background information of the CEOs of 34 P2P online lending platforms was disclosed in more detail. A total of 30 of the 34 CEOs had a finance-related background before engaging in the P2P online lending industry.

Among them, 26 have work experience in traditional financial industries such as private equity, securities , commercial banks, and insurance; 4 have backgrounds in the Internet financial industry; in addition, another 2 have worked in Internet companies; and only 2 have no work experience in the Internet and financial industries.

Among the four CEOs with backgrounds in Internet finance, two have experience as senior executives in well-known P2P online lending platforms.

At the same time, many CEOs of the transformation and exit platforms have high academic qualifications from prestigious universities, including many graduates from Peking University, Fudan University, Renmin University and other well-known institutions, and two of them have doctoral degrees and ten have master's degrees. In addition, most CEOs graduated from economics, finance and related majors.

4. Analysis of the transformation direction of the transformation and exit platform

There are mainly the following directions for transformation and exit platforms:

The first type is to transform and exit to become a traffic diversion platform, there are 9 companies in total. These transformation and exit platforms mainly use the popularity they have accumulated in the P2P online lending industry to divert traffic.

Some of them are used to divert traffic to financial products such as trusts and funds, and they display such financial products on their websites. After investors click on the financial items, they are redirected to the websites of the corresponding financial institutions that sell the financial products. Some of them are transformed and exited to become information platforms for equity investment and financing , diverting traffic to equity investment and financing projects. A small number of them are used to divert traffic to food and educational institutions.

The second type is engaged in traditional financial industries such as private equity and financial leasing. There are a total of 7 companies, of which 4 are private equity. Among all the transformation and exit platforms, the P2P online lending platforms that choose to transform into private equity are those with relatively large P2P online lending business scale.

Generally speaking, the larger the P2P online lending platform, the more high-net-worth customers it has, and high-net-worth customers are precisely the target customer group of private equity. Moreover, compared with the P2P online lending industry, private equity has higher professional requirements for financial knowledge. The smaller-scale P2P online lending platforms that are undergoing transformation and exit are relatively unattractive to talents who are proficient in private equity-related financial knowledge due to factors such as financial strength.

The third type provides consulting services, with a total of 6 companies. Some of these platforms use the risk control experience accumulated from operating P2P online lending platforms to provide risk control consulting for newly entered P2P online lending platforms, some provide operation-related business consulting, some provide big data technology consulting, and some platforms provide consulting services related to investment immigration.

The fourth type is to transform and exit to engage in other Internet financial industries such as crowdfunding and digital currency, with a total of 3 companies. On the one hand, new types of Internet finance such as crowdfunding and digital currency are a vast blue ocean market, and the financial technology in this area is not yet mature and needs to be developed urgently. On the other hand, compared with the restrictions imposed by the interim measures on the P2P online lending industry, other Internet financial industries such as crowdfunding and digital currency lack strict supervision.

In addition, there are 15 transformation and exit platforms that chose to engage in other industries, and the types of transformation industries are numerous and varied. Some chose to do judicial auctions of real estate, some transformed and exited to become real estate agents , and some engaged in e-commerce . Some whose transformation direction is unclear are also included in other items.

In general, the CEO background of the transformation and exit platforms is generally related to the transformation direction. The CEOs of several platforms that transformed and exited to engage in private equity all had experience working in the private equity industry before engaging in the P2P online lending industry. The CEOs of several platforms that continued to engage in Internet finance also had experience working in Internet finance companies. The work experience, customers, technology and other resources accumulated by the CEOs in their original backgrounds may be an important reason for their choice of transformation direction.

Transformation and exit are bumpy, it may be better to focus on P2P

For any P2P online lending platform, whether it chooses to continue to deepen its roots in the P2P online lending industry or chooses to cease operations or transform and exit to engage in other industries, it needs to make a careful choice.

A few years ago, the tide of Internet finance swept across China, and many P2P online lending platforms rushed into the door of the P2P online lending industry with great enthusiasm.

Today, competition in the P2P online lending industry is becoming increasingly fierce and supervision is becoming increasingly strict. If you choose to transform and exit, you will not only face the dilemma that the road to transformation and exit may not be easy, but you may also miss out on the dividends of the P2P online lending industry, which still has a bright future. Choosing to stay and focus on innovative business and strengthening risk control may lead to better development. Therefore, whether to stay or leave requires careful consideration.

First of all, as mentioned in the previous article, the background of the CEO of the transformation and exit platform is highly consistent with the direction of the enterprise's transformation and exit. Therefore, if the platform chooses to transform and exit the P2P online lending industry, it should pay attention to grasp the direction of transformation and exit. At the same time, after the transformation and exit, there may be many problems such as the reintegration of customer resources in new fields, lack of professional knowledge and talents, difficulty in obtaining licenses, etc. Therefore, the road to transformation and exit may not be smooth.

Furthermore, the prospects of the domestic P2P online lending industry remain bright. According to statistics from the Internet Lending Home, the loan balance of the P2P online lending industry was 957.62 billion yuan at the end of April 2017, and 1,297.588 billion yuan in April 2018, a year-on-year increase of 35.50%.

In addition, since the P2P online lending platform is currently in the critical period of filing, the number of issued bonds is relatively small, but after filing, the P2P online lending industry is likely to experience a new round of growth. If the platform transforms and exits now, it will likely miss out on industry dividends.

For platforms that choose to continue to deepen their presence in the P2P online lending industry, product differentiation and innovation are the key to maintaining a competitive advantage. Although the innovation of P2P online lending platforms is partly affected by regulatory policies, their businesses can still continue to be segmented on the basis of compliance.

As far as the auto loan business is concerned, the traditional auto finance model represented by vehicle mortgage and vehicle pledge has become a red ocean market, but the used car finance and new car lease-to-purchase model still have broad room for development.

At the same time, risk control remains a major focus of P2P online lending platform operations. Today, the overall comprehensive yield of the P2P online lending industry is declining and the customer acquisition cost of P2P online lending platforms remains high. If the platform wants to gain a foothold, it must carefully control risks. The violent debt collection model that was widespread in the past is not compliant and is now a thing of the past. Big data credit reporting is in its infancy. The platform can create user portraits by collecting, organizing and analyzing massive amounts of information across industries and multiple dimensions, thereby identifying the user's credit status and effectively preventing users from multiple borrowings, loan fraud and defaults.

Summarize

This article analyzes the transformation and exit platforms from multiple angles, including factional background, geographical distribution, and CEO background of the transformation and exit platforms. It finds that the proportion of P2P online lending platforms choosing transformation and exit is low, the transformation and exit directions are diverse, and are related to the background of the platform CEO. At the same time, transformation and exit need to be cautious.

On the one hand, the road to transformation and exit may not be smooth, as there are many problems such as customer resource integration. On the other hand, as an important supplement to the traditional financial industry, the P2P online lending industry practices the concept of inclusive finance and still has broad room for development. Choosing to continue to take root in the P2P online lending industry is also a good choice.

The author of this article @卢芷然 is compiled and published by (Qinggua Media). Please indicate the author information and source when reprinting!

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