User word of mouth is the key to the formation and sustainable development of corporate brands. Shanghai, which has long adhered to the principle of service first, knows this well. At the end of 20 19, Shanghai Paipai Loan finally completed its strategic transformation, upgraded to "Xinyi Technology", and will be transformed into a pure loan-assisting institution, funded by traditional financial institutions and banks, in order to bring better service experience to customers.
As a pioneer in the online loan industry, the trend of Shanghai's loan auction has always been the vane of the industry's attention. Zeng Guanxuan, the official of Shanghai Auction Loan, announced that by September 2020, the stock online loan business will be cleared and withdrawn. Since then, Shanghai has nothing to do with online loans.
After the transformation, the performance of Shanghai's auction loan has gradually entered the right track and become one of the few institutions with strong stock prices in financial technology. The financial report shows that in 2020, Xinye Technology contributed 646.5438 billion yuan in loans, with a total revenue of 7.563 billion yuan and a net profit of 654.38+96.9 billion yuan. From the perspective of revenue and profit, Xinyi Technology ranks among the top three listed mutual gold enterprises. After the results were announced, the share price of Xinyi Technology rose sharply, hitting a record high.
After the online loan business was cleaned up, the life of most online loans completely ended. In contrast, the head Internet financial platform, which started with online loans, transformed earlier, the role of financial technology changed, its performance re-entered the upward track, and it continued to participate in the resource allocation of consumer credit.
As early as 2007, the auction of loans became the first platform in China to carry out peer-to-peer lending information intermediary, and the chapter of online lending in China was thus opened. With the first-Mover advantage and user resources, Paipai Loan went public in the United States on 20 17, and the scenery was infinite. The cumulative number of registered users of the Group exceeds 1 100 million.
In 2020, in the face of the new rules of private lending and the risk of sinking customers, Shanghai Paipai Loan will gradually move up the customer group as a strategy to deal with pricing fluctuations and credit risks. Xinyi Technology said in its financial report that it has successfully completed its strategic transformation to a better borrower. By strengthening the risk assessment and management framework, it can continue to reduce financing costs and increase the number of institutional financing partners.
As far as the practical impact is concerned, the new regulations on private lending interest rates are not applicable to financial institutions. Mutual fund institutions such as Shanghai Auction Loan have been transformed into pure lending platforms, and lending institutions are all financial institutions, which will not have a great impact on their business.
Moreover, under the trend of stricter supervision, mutual financial institutions have started light capital business models, mainly focusing on low-risk and risk-free technology-based loan assistance models. Under the new requirements of commercial banks' internet loans, mutual funds institutions will become the mainstream with a high probability of neglecting capital and not covering the bottom. Of course, it also depends on the asset quality, technology and scene strength of the platform.
The loan-aiding light capital model, also known as the profit sharing model, means that when a loan-aiding institution cooperates with a financial institution, it is mainly responsible for traffic supply and initial screening, gathers users through its own scenarios and marketing, and then sends them to the lending institution through the first simple risk control survey, and then the lending institution conducts pre-lending credit review to decide whether to lend.
Under the light capital mode, the lending institution no longer covers all assets, but only shares the loan income with the employer in proportion, and the fees earned are only technical service fees for diversion and risk control. Generally speaking, the profit sharing ratio of lending institutions mainly depends on the right to speak before capital, and the basis of the right to speak lies in flow, technology and collection ability.
In the process of mutual fund institutions' customer base moving up, they will face competition from consumer finance companies and banks, while banks and other institutions have strong financial ability and comfortable pricing. The high cost of capital and the lack of advantages in pricing naturally become the disadvantages for mutual fund institutions to acquire customers. This also means that mutual fund institutions' scenes are expanding and new customers are facing difficulties.
At the same time, mutual fund institutions have a better understanding of the market, especially the users who know the sinking market. Coupled with flexible product strategies and gameplay, mutual fund institutions still have strong strength in scene expansion. At present, the combination of credit payment and cash loan is the mainstream way for mutual fund institutions to expand their scenarios.