Where Is The Opportunity For Rural Internet Finance?

There is nothing in this world.

But since the market economy, people have seen the financial world, bureaucratic habits and structural imbalances.

It also has separate businesses and licenses.

Just as it happens, the Internet of efficiency and equality is deeply rooted in the hearts of the people.

It is thought that under the tide of the Internet, all kinds of financial innovations; financial Shenfu, there are also Internet penetration.

So the theory of subversion is spread around the world.

Since ancient times, there have been numerous people with lofty ideals to attack the financial regulatory system, factoring, small loans, trusts and guarantees.

In addition to a small number of them, they are still hanging around as shadow banks, and the rest either go to power seeking rent-seeking or are caught in prison for financial crimes.

Compared with other industries, the Internet seems to be at a disadvantage in terms of resources.

However, a group of smart and intelligent people have gone forward and devoted their whole lives and struggled.

So far, though not solving all the problems, there are so few enterprises, Ma Yun, one of the most typical representatives, who has overturned traditional Chinese business models.

People all think that the Internet calls for rain and omnipotence, and more people go ahead and join in it.

Internet banking starts from breaking up regulation.

De centralization and de regulation of dual wheel drive

Speaking of Internet finance, Li Feng of Frees said that the development of Internet Finance in the US is only the single wheel drive of the Internet technology. The big opportunity only appears in the promotion of technology to the traditional financial efficiency; and the development of Internet Finance in China is driven by the double wheel drive of "de regulation" and "centralization".

In the United States, deregulation has been completed in the financial crisis from 1970 to 2008, and the financial industry in the United States has been highly competitive, highly leveraged and well served.

The development of Internet finance is only relying on information technology to fight against the original financial players through higher efficiency. The main opportunities are concentrated in the field of big data.

In China, however, the situation is different: net loan was born in 2007, but not until 2013.

Before the birth of the world, the development of net loan industry has never stopped.

After the birth of the balance treasure, the volume of the net loan industry increased by tens of times, and the state relaxed its policy.

The volume increased instantly by hundreds of times, and people's livelihood, CITIC, peace, Alibaba, Jingdong, Tencent and other large capital have landed on the beach.

The net loan product itself has not changed. This shows that the development of China's net loan industry is not entirely dependent on the driving force of information technology, but is driven by the loosening of regulatory policy.

According to Beijing North think tank and IT oranges data, in 2015, China's Internet financial investment and financing market occurred in 402 cases of investment and financing, financing amount of more than 40 billion yuan.

In last year's two tier market, A shares had 49 companies involved in Internet finance, and 14 years from July to 15 June, the Internet financial industry index rose 540%, ranking first among all industry indexes.

Concern is also a concern. When an industry is recognized by everyone, BAT and financial institutions are beginning to harvest on the mainstream racetrack.

Where is the opportunity for early entrepreneurs to go to the B round industry?

Many opportunities exist in the subdivision area, and it is difficult to do well.

Internet financial companies seem to be in a state of disorder, but they can be summed up in 4 ways. These four models are: capital side, intermediary, asset end, and post market.

The capital side attracts funds to buy online financial products, and intermediaries cooperate to match, including financial supermarket and investment platform; assets end creates assets that can be purchased, such as student debt, Bill debt, car loan mortgage claims, and then the market provides other services support for the industry, including accounting tools, community portals, enterprise services, and media.

What is slightly different from the general classification method is that I distinguish the intermediary from the capital side alone. The intermediary mode especially refers to the C2C information intermediary without risk and pure diversion. And the capital side refers to the credit intermediary of the C2B2C mode that first purchases assets and then pfers, gains more benefits and bears risks.

But when we analyze them one by one, we increasingly agree with what Jingwei Qian said: there are opportunities in many fields, but it is difficult to do well.

Fund end, Matthew effect is more and more serious, an unnamed P2P platform can get thousands of passengers' cost, and the platform of pure capital platform basically goes to the B round.

Because the capital side and risk are indivisible, a few assets have to build their own funds, but ultimately it is difficult to get competitive position in the market.

The intermediary mode is mainly information management and loan guiding platform.

However, what differences can be made in financial supermarket depends only on the ability to get good assets; the 360 of the loan platform and the good loan go to the D round.

The post market is mainly divided into tools, social networking and media. Due to the monopoly effect of social media and media, the opportunities are mainly focused on enterprise services.

However, the threshold of this line is very high. Neither credit nor payment seems to be a game that entrepreneurs can afford to play.

Because of the huge market, extreme dispersion and various kinds of assets, there are few opportunities in the traditional fields such as small loan, supply chain finance and so on.

But for some traditional financial places, there is still room for the Internet.

First, consumer finance: under the background of residents plus leverage, many consumer scenarios in the Internet field are waiting to be developed.

Second, rural finance: when we talk about residents plus leverage, there is no doubt that the incremental market space exists for almost no leveraged farmers.

However, it is still a question whether the Internet is going to land in rural areas and whether it has to fight against dimensionality.

Third, asset securitization of new varieties: including non-performing assets, corporate equity and other value-added assets that we did not expect.

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120 billion rural financial market

The reporter once described a heart stirring dream: Internet companies will create a large number of "farmers who get rich first". Their income level and consumption level are not inferior to those of white-collar workers in the first tier cities.

Their high quality of life, elegance and health make it difficult for them to look at their nape.

The vast field is full of hope, and the situation of brain drain will be gradually reversed.

If there is a vast world and a great deal of work, if we can fundamentally change the fate of the 900 million Chinese peasants, how many Nobel prizes are not enough to reward.

After talking about the feelings, let's talk about the reality: from the perspective of customer groups, the white-collar workers with high credit per capita are traditionally served by financial services, and college students are divided into services by stages. The blue collar with low per capita credit and farmers are the incremental market yet to be developed.

The lifetime of blue collar users as Internet Co users will not be too long. Once working for several years, traditional finance will inevitably touch on and provide them with lower cost services.

Farmers are both hard to swallow and have long-term value. There are 400 million potential customers. According to the target penetration rate of 10%, the passenger price is 3000 yuan, and the market size of 120 billion can be estimated to be enough to support several unicorns.

And we anticipate the future trend. Due to the development of urbanization, the rural population will be out of flow. The elderly will lose their labor force over time.

Even in some places, families who go to work in cities directly grow their families on fir trees at the same speed, and then go home for a few years.

Therefore, the government put forward a policy of "moderate scale". Tens of hectares of family farms need hundreds of thousands of dollars a year, not to mention the allocation of agricultural machinery and manpower costs.

Moderate scale means large amount of financial demand.

However, the existing financial services for rural areas do not provide a good solution: the coverage is not comprehensive, the number of gray areas is much, the government forces are in a mess.

On the one hand, the structural shortage of the supply side, on the other hand, is the unique situation of the demand side of rural finance.

First, it has not been covered by traditional financial services: there are 40 thousand townships in China, a total of 800 million rural population, with a potential customer group of 4-5 billion.

China's rural areas remain largely in the clans' society, and commercial financial institutions can not form a mode of operation that allows rural clansmen society to eat.

Whether it is state ministries, large state-owned enterprises, or private enterprises focusing on small and micro credit in rural areas, if the essence is not positive, unilateral guarantees, mortgages, policy subsidies and grey collection will hardly make fundamental changes in rural finance.

On the other hand, the overwhelming majority of the peasants are the first group of loans, and the room for increasing the leverage of the residents is really tempting.

Second, mainly for productive Loans: traditional farmers are more conservative about borrowing for personal consumption, while agricultural machinery, pport vehicles, fertilizers, pups and other productive loans have always been in demand, which are generally solved through credit sale.

However, because of the integration of production units and living units, production and consumption are difficult to separate.

Third, lack of stable credit: farmers have no credit system or standardized collateral.

Although there is no credit system for students, students are mostly standardized, while farmers differ greatly from place to place.

If we want to talk about the commonality, most farmers have no concept of keeping promise, rules and regulations and so on. They need to be bound by social relations and production management relations in combination with different geographical conditions.

No wonder that rural credit is a hard nut to crack.

No matter how much the amount is, the manpower and time cost of the whole process will be almost the same.

In the vast rural areas, we only have to resort to force.

If the traditional way of rural small and micro credit is bound to be uneconomical, in view of this problem, a small number of enterprises have given the answer:

At present, the bright future is the Alibaba's "Wang nun loan": the person in charge of the rural Taobao service station is in charge of lending, because it is a village partner who has received training and familiarity with the village.

While promoting commercial relations, Alibaba promotes financial instruments with constraints of production and business relations, and effectively controls customer default rates.

The typical representative of rural consumer finance startups is Shi Ma Finance: the division of electric vehicles and motorcycle consumption, and direct cooperation with distributors can cover the scattered countryside at low cost.

When customers buy electric cars, they naturally enjoy financial services. For users, they are traditional credit sales. But for merchants, the support of financial support has greatly relieved financial pressure.

Risks are mostly underpinning by brand dealers and dealers, and capital terminals are connected to north bank consumer finance.

Through the output technology and risk identification ability, the traditional credit sale scenario has been innovated.

Others also have small loans or P2P to set up loan service stations in different villages. They are either separated or spread rapidly through franchisee mode.

In the early days of Internet finance, such enterprises enjoyed the bonus of first mover advantage, but such a mode was difficult to scale expansion. With the expansion of business, the cost of management was rising.

All in all, because of the strong regional and dispersive degree in rural areas, it is not clear to try to get blood pfusion through urban power.

All of us need to think about the two question. How can we reach users who are extremely scattered in low cost? How can they expand in a highly regional market?

The rural market is not only a financial failure, but also a difficult area for businesses to catch up with. It is impossible to talk about finance in terms of finance.

At present, companies that make achievements in rural finance, whether in agricultural division or operating loans, are doing business first and then permeating finance, and most of them are using small B's strength to reach the countryside.