1, different modes.
Bank financing:
"There are middlemen earning the difference", and investors buying bank wealth management products are essentially lending. However, because banks and shadow banks (channels of non-standard assets) are added to the simple lending relationship, the high interest actually paid by borrowers is deprived by intermediary financial institutions in the form of handling fees, leaving few investors.
P2P:
P2P is Internet-based finance. Investors and borrowers can directly realize capital docking. The high interest that borrowers are willing to pay can be directly converted into the high income of investors. P2P only plays the role of information transmitter and charges a small amount of intermediary fees.
To put it simply: buying bank financing is equivalent to shopping in the mall, while investing in P2P is equivalent to visiting cats or products, which does not require many intermediate links and has more natural benefits.
2. The threshold is different
High bank threshold:
The bank's lending threshold is notoriously high, leaving aside the wealth management side and mentioning the borrowing side alone. First of all, banks are not philanthropists, and some individuals and small and micro enterprises that are in urgent need of money will be directly rejected; Secondly, because bank loans need to go through many mortgage and verification procedures, the process is lengthy, and some of them voluntarily choose to give up during this period; Thirdly, even if all the hurdles are passed, the final loan amount is very limited, perhaps just a drop in the bucket.
P2P threshold is low:
P2P has a low threshold and can help more individuals or small and micro enterprises. The operation process is simple, thus saving time and cost, which is sometimes the difference between "jumping off a building" and "not jumping off a building" for some small and micro enterprises or individuals. In order to raise funds, small and micro enterprises or individuals are more efficient and willing to pay higher interest costs to obtain loans.
To put it simply: it is too difficult to get a loan from a bank, but it is easy to get a loan from P2P.
3. The cost is different
High bank costs:
In traditional banks, to complete the process of "lending", we must face high "operating" costs. This can be seen from the tedious process and the long time. It's not that they don't want to be fast, but they can't be fast! Just like a fat man wants to change direction, he must spend more physical strength. In addition, the income type, asset investment, currency, issue period, bank assessment, market interest rate and other factors will affect the yield of bank wealth management products.
Low P2P cost:
P2P platform is a transaction between borrowers and investors without so many twists and turns, which not only improves operational efficiency, but also greatly reduces operational costs.
Recently, with the reduction of operating costs, a wise P2P platform can win the favor of borrowers and lower interest rates to obtain quality projects; At the same time, it can also improve the wealth management income and benefit investors, thus gaining more lasting impetus for the development of the platform.
To put it simply: banks have low efficiency, high costs and low returns; P2P has high efficiency, low cost and high income.