Internet finance is not a "naughty child"

Ma Huateng once pointed out that for many traditional industries, Internet information technology has changed all traditional industries as much as the invention of electricity. From the endless emergence of financial models in the industry in the past two years, we can also see that the financial industry, which has the genes of the Internet, is no longer calm.

From online payment, Yu'ebao-type money funds to the current p2p, the field of Internet finance is booming. In our industry, there are constant doubts and confusions. But fortunately, these doubts also prove that Internet finance is making continuous breakthroughs and moving forward.

"God's Logic" Subverted

A scholar once pointed out sharply that almost all industries have changed beyond recognition in the past 300 years, but the basic system and operating logic of the banking industry have not changed much - "This is almost unjust."

By 2013, this impregnable "magic logic" was finally overturned. With Yu'ebao as a pioneer, Internet finance began to catch banks off guard. However, the challenge facing banks is far more than products and interest rates, but the public's high recognition and acceptance of new methods, new services, and new thinking. The convenience of Internet financial services, the low cost of acquiring customers, the understanding of credit, and the interactive service chain are completely unfamiliar to the banking industry. In other words, banks did not do anything wrong, but were defeated because they did not do enough.

"The first thing I do when I wake up in the morning is to open my phone and check my Yu'ebao account." This has become a daily habit for financial management novices. In addition to putting bank deposits into Yu'ebao to earn some pocket money, Internet finance has also penetrated into every aspect of our lives in ways that are not easy for people to notice. For example, people have begun to try QR code payments, WeChat taxis, and online lottery purchases.

The emergence of Internet finance has obviously created more convenient and efficient living, payment and financial management conditions for us. With the further development of Internet finance, more targeted and in-depth vertical segmented services will emerge in the industry, which may completely change your life and mine.

Not a "naughty kid"

Internet finance has overturned the thinking of traditional finance and innovated the financial service model. Although it is called a "troublemaker" of traditional finance, Internet finance is not a "naughty child". In terms of serving the real economy, Internet finance has achieved remarkable results.

From the perspective of the p2p platform, one of the significances of Internet finance is that it opened up China's subprime mortgage market.

In the United States, the "subprime" and "prime" loan markets are divided based on the borrower's credit conditions. Lending institutions treat borrowers differently based on their credit, thus forming a two-tier market. In my country, this stratification also exists. For a long time, the credit rating of the financing party, the front end of Internet financial loans, has been imperfect and opaque. Grassroots and small and micro enterprises are mostly established for a short time and lack historical credit data. It is difficult to provide collateral. The amount required is small and urgent. It is difficult to obtain loans according to the current risk control standards of the banking industry.

At the same time, due to information asymmetry, financial institutions within the traditional system lack financing channels and financing systems that are adapted to the needs of small businesses, and financial services for small and micro businesses are still at a relatively backward level, resulting in a large number of small and micro businesses not having a loan relationship with traditional financial institutions and can only solve their financing difficulties through private lending. Therefore, there is a huge potential investment demand in the secondary market, which has not yet been fully released.

The advantage of Internet finance is that it can break through the limitations of time and space, and has huge cost advantages. Internet finance has a "long tail effect". Compared with traditional finance, it is more inclusive and popular, and can cover the needs of a large number of people that traditional finance could not reach in the past.

Second, it has promoted the process of asset securitization in my country.

I believe that many non-industry insiders do not understand why China's Internet finance is so popular? Especially your p2p online lending platform. In fact, whether it is a guarantee model, an unsecured model, a debt transfer model, or a purely private online lending model, it is a derivative process of re-securitizing assets. That is, re-securitizing debts, turning them into financial products, and then circulating and trading them. This achieves the effect of activating stagnant water into living water.

Although the reform of asset securitization in my country has not been fully implemented yet, Internet finance has taken the lead in the system and securitized assets that can be securitized in advance. It is this kind of innovation ahead of the system that has triggered the boom of Chinese Internet finance.

Diversified and personalized financial trends

In developed countries with financial services such as Europe and the United States, financial services are more diversified and three-dimensional, covering almost all people, and their wealthy class is basically in their 40s and 50s, so there are not many opportunities for Internet finance. In my country, because the wealthy population is relatively young, and most of those who use Internet finance are born in the 1980s and 1990s, they have a strong demand for the use of new technologies in wealth management. Therefore, providing diversified and personalized financial services to these main consumer groups may become a new direction for Internet finance in the future.

Internet finance does not replace traditional finance, but is guided by new Internet ideas and supported by new Internet technologies to optimize and enhance the functional performance of the existing financial system, bringing about a financial era that pays more attention to customer needs and personalized experience. In the face of new technological waves, Internet finance and traditional finance have equal opportunities. In the constant collision of new and old concepts of Internet finance and traditional finance, we have reason to believe that China's financial industry will usher in a brand new development opportunity in the Internet era.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.