Business Upgrade of Light Orange Technology On July 26th last week, Light Orange Technology held a press conference in Shanghai to announce the business and brand upgrade. The main business platform of Light Orange Technology is "cash card", which provides information matching services for small short-term loans for young people aged 23-35, with amounts ranging from 1000 to 5000. 20 16, 16 In February, the cash card completed the Series A financing of 65,438 billion yuan, which was jointly invested by 5 1 credit card, Meng He Venture Capital and Pancheng Assets. In April this year, we completed the second round of financing for Tiantu Capital and 5 1 credit card investment. Up to now, Light Orange Technology has more than10 million registered users, more than10 million borrowed users, and the highest number of matches per day exceeds 80,000. This business upgrade, from the previous single business platform cash card, was upgraded to a multi-business platform for B-side and C-side. Terminal C mainly provides small, short-term, consumption-biased, revolving loan information services, with specific products including "cash card", "cash 360" and "cash loan" to realize risk pricing, gradient service and loan management services; At the B end, it helps to provide risk control audit and financial technology export services, mainly including three products: "credit cloud", "future data" and "post-loan housekeeper". This business upgrade can be understood as follows: Shallow Orange Technology has accumulated a certain number of customers, data and financial technology level in the short-term microfinance field before, and the next step is to expand its business horizontally according to these business accumulations. In addition to micro-loan business, it also provides loan information management services to customers through "Cash 360" to meet the needs of users to find more suitable loan products and manage credit. "Cash IOU" is a scenario-based loan. At present, it is planned to expand the scene in the fields of games and live rewards. Light orange technology has accumulated tens of millions of users, and the proportion of users who provide lending services for it is about 20%. Other dissatisfied customers can introduce other products to them. This is the logic of C-side business expansion. This kind of business thinking is more common in today's mutual gold industry. Judging from recent cases, Pleasant Loan is building an open platform. When the customer's loan demand exceeds the loan quota of the platform, they will recommend the customer to the partner and get a certain commission. Fanghu.com, the housing mortgage business platform, cooperates with high-flow platforms such as Jingdong Finance, Baidu Finance and Kingdee in obtaining customers, and these platforms recommend housing mortgage loans to customers. On the B side, the horizontal expansion of business is mainly based on the big data risk control capability that has been formed, and technical output is carried out in the aspects of pre-loan risk control and post-loan collection.
Companies such as Qian Bao and Zhangzhong Finance also upgraded their brands before using them. At present, the main enterprises in the field of micro-credit loans are Youbaobao, Zhangzhong Finance, Lending King 2345, Quantification School, Light Orange Technology and so on. Before the brand upgrade of Light Orange Technology, Qian Bao and Zhang Zhong Finance had related actions. On March 28th this year, when the financing was announced, Qian Bao announced that the brand was upgraded to Rong Zhi Group. In the future, it will provide services in three directions: First, Qian Bao Mobile APP provides "thousands of people" products, providing different quotas and stages; Second, build a risk control system with artificial intelligence technology as the core-I.C.E. By pricing human risks through artificial intelligence, it can not only be used for its own products, but also realize the risk control technology for external output. Third, through the establishment of a credit process management platform based on big data and artificial intelligence automation technology, "Huichengbang", we can independently provide full-process services in the credit process. At the beginning of April, Zhangzhong Finance also announced the brand strategy upgrade, from "Zhangzhong Finance" to "Zhangzhong Financial Services", extending from single peer-to-peer lending in the past to more fields, exporting risk control capabilities, and reaching cooperation with banks, consumer finance companies and Internet small loans to provide more diversified loan varieties. Judging from the actions of several companies, some new businesses are generally explored outside of micro-credit loans, among which technology output is the general direction, providing big data risk control solutions for traditional financial institutions. In addition, it is the matching of credit products. Of course, all businesses are still in the exploration stage, and they are far from forming a certain amount of business, which contributes to the performance.
Why do people favor brand and business upgrade? Most microfinance companies are upgrading their brands and increasing their business lines. Business logic mainly lies in: on the one hand, it is an inevitable choice for users, data and technology to accumulate to a certain stage. When users accumulate to a certain extent, they need multi-dimensional financial services to keep users on the platform. After the income level increases, users need higher financial services. If there is no suitable product to recommend to customers, they will face the problem of losing hard-won customer resources. It is an inevitable choice to do diversified business exploration. In addition, data resources and technologies have accumulated to a certain extent, and the marginal cost of use is very low. Doing technology export can not only generate a certain income, but also enable partners to have the technical ability to serve the inclusive people. On the other hand, it is necessary to enhance business stability, enhance valuation and strengthen brand building. Although the profit rate of a single micro-credit loan business is relatively high at present, it will return to a reasonable level in the future due to the regulatory pressure of market risks such as interest rate and service fee. In addition to this business, exploring some related businesses on the basis of established businesses can increase income sources, enhance business stability and be beneficial to valuation. In addition, some chaos in the industry, such as high-interest bad debts and a large number of media reports, make the whole industry questioned, and brand upgrading is also a kind of protection for corporate image.
The fate of internet finance is that micro-credit plus micro-credit of financial technology is a mutual fund business that has emerged in the last two years and has become an important subdivision of mutual fund. It is characterized by using big data and other technologies to make small loans to serve people who cannot be served by traditional financial services. Around the industry, there are some doubts in the market, such as whether the interest rate is too high, whether it is reasonable for low-income groups to increase the debt ratio, and violent collection. However, it is undeniable that the industry is still in a prosperous period, and several major platforms are still expanding their business horizontally. The development of micro-credit loans mainly follows the basic law of mutual funds, that is, using emerging technologies to do business that traditional finance can't do, such as providing credit services to customers who lack credit records. This is the advantage of Internet finance. Instead of betting on financial technology, it is difficult to do business similar to banks in the traditional mode through the Internet platform. Hongling Venture Capital is an obvious example. Over the years, it has been famous in the industry for its big bidding mode, and transferred its corporate loan demand to the Internet to solve it. The scale of the transaction is really large, and the team is mainly composed of senior executives from banks. The projects that can be grabbed are often projects that banks are unwilling to lend, and the quality is average. Therefore, Hongling Venture Capital stepped on a lot of thunder, accumulated some bad debts, and the company was also at a loss. At the end of 20 16, Zhou Shiping, chairman of Hongling Venture Capital, said that with the introduction of online loan supervision measures, the living space of online loans was limited by the quota, and in the future, he would focus on financial technologies such as smart investment and financial IT, as well as financial big data solutions. However, the transformation is definitely difficult, and Hongling really lacks this accumulation. From this perspective, microfinance+financial technology is the standard of Internet finance. In the field of large-scale enterprise credit, Internet finance has not found a suitable technology to improve the efficiency and ability of risk control. After all, enterprises are organizations. Unlike individuals who have rich behavioral data, the current big data risk control technology is difficult to come in handy. This makes mutual funds have no advantage over banks. It is the fate of internet finance to use big data and other technologies to do micro-credit for individual users.
Under the influence of capital, market competition, supervision and other factors, the microfinance industry may be adjusted in the future. Of course, there are some problems in the micro-credit loan industry itself. From the perspective of industry order, at present, the industry is mixed, and the improper behavior of some enterprises has damaged the image of the industry, which also makes the industry face greater regulatory pressure. The whole industry needs to establish a healthier and more sustainable business model. From the source of funds, micro-credit loans often come from banks, licensed consumer finance companies, ABS and so on. And not raising funds from the public will not expand social risks. However, funds depend on licensed financial institutions, and in the case of tight market funds, it may be difficult to lend money, which will affect business development. Earlier, some media reported that the "flying loan" of cash loan products failed, and the reason was that the credit policy of cooperative banks was tightened. Capital is subject to people, which is not a problem when the market liquidity is good, but it may become a big problem when the liquidity is poor. Of course, whether you can get funds from financial institutions is also related to your own risk control strength. If the risk control ability is recognized by financial institutions, funds can be guaranteed to a certain extent. Judging from the regulatory situation, in the future, the regulatory authorities may put forward strict regulatory requirements on interest rates and service fees, collection methods, data privacy protection, etc., which will have a great impact on the industry, especially the interest rates and service fees are restricted, which may affect the profit model of many platforms. From the perspective of market development, in theory, the potential customers of micro-credit loans, that is, people who have not been served by banks, may reach hundreds of millions, but the people who serve micro-credit loans are concentrated around 22-35 years old and cannot lend to minors and students. The demand of older groups may be small, so the people who can serve will be limited to some extent. There are a large number of micro-credit loans in the market, and the cost of acquiring customers will be higher and higher in the future. Overall, under the pressure of market and supervision, it is expected that some inferior platforms will gradually withdraw from the market. However, the industry will not be too concentrated, and the loan market has always formed multiple service providers at the head. It is expected that the same is true for micro-credit loan services, and there may be more than a dozen or even more large service providers, which are located at the head of the industry. After all, companies that can walk at the forefront of the industry often have little difference in terms of capital, user scale and technical ability. And the services of different service providers are not very different, so it is difficult to replace each other. Switching between these service providers is not expensive for users. It is difficult for the market to form a situation dominated by a few enterprises.