Financial technology, U.S. stocks, "thaw" subdivision mode differentiation now exists

Financial technology, U.S. stocks,

Author: Li Hui source: China business network

Since Jane & Poor's technology landed in the U.S. in December last year, China's financial technology companies have once again brewed a new wave of capital operations in the U.S. capital market.

On September 19, XYF. NYSE, a domestic personal financial services platform, landed on the NYSE. This is the end of last year, after a round of interest stores, auction loans, and credit, Jane Pu technology, Lexin and other institutions listed in a centralized manner, the U.S. stocks add new. And according to people familiar with the matter, including micro-lending, you and I, and other institutions will also be in the U.S. and Hong Kong stock markets after October, together with Titanium products which have already submitted prospectuses, and Samoye Golden Garments, which are preparing to submit prospectuses, are expected to usher in another round of financial technology institutions in the end of this year.

However, compared with the same period last year, at the macro level, the domestic regulatory environment, market enthusiasm, investor confidence has undergone tremendous changes; and at the micro level, the same competition in the field of consumer finance institutions in the pattern, the crowd is gradually showing a trend of segmentation. Against the background of weak external environment, the halo of the concept of financial science and technology itself is attributed to rationality. A series of solid indicators, such as how to integrate with potential markets, how to choose models, how to optimize the quality of customers, tamp wind control technology, and even strengthen credit enhancement, are becoming the focus of institutional competition.

Capital markets have doubts about the market.

In the view of the industry, the Internet financial industry is still not completely out of the turmoil of the special period, the successful listing of head enterprises still has a positive value to boost confidence in the industry. The small-win technology offered a volatile day but the overall trend was positive -- $15 at the start, nearly 60% higher than the issue price, jumping to $20.3 in the session and triggering a fuse. Since then, the shock has closed at $11.97, or 26%. According to the "China Business News" reporter observation, the same day pleasant loan, Lendding Club and other concepts of stocks have a wave of pull up.

It is noteworthy that the fundamental turmoil in the lending market in recent months will clearly have an impact on companies listed at this time. According to the small-win technology prospectus, in July 2018, its monthly loan matching fell by 30.8% from the first half of the average monthly level, the bad rate rose. To mitigate the impact of changes in earnings and market risk on share prices, Win-Win Technologies lowered its IPO to $160 million in its September 11 update.

In fact, many respondents admitted that they were under pressure to "go against the tide" at difficult times. According to people familiar with the matter, Win-win Technologies had been planning to go public in July or so, but a series of market changes forced it to postpone its IPO plan. With the platform data stabilizing and market volatility decreasing in the past month, the high-level bidder set a deadly order to go public in September. "On the one hand, there is confidence in the business, on the other hand continue to wait is not necessarily a good time to absolutely." The source said.

In an interview with reporters, Cheng Shaoyong, president of Win-Win Technology, admitted that investor sentiment did fluctuate during the IPO, compared with the popularity of the earliest test run, mainly because he had more doubts about the domestic regulatory environment and market trends, but eventually all that remained were institutions that recognized Fintech's model in China. Several rounds of communication with SEC are mostly at the accounting level. And he also disclosed that the platform has not yet achieved the record certainly has an impact on valuation, but also for the subsequent market value growth left room.

Some of its core shareholders disclosed that, considering the domestic regulatory and market environment, there had been a shift in attitudes in the subscription process, but by the end of the issue a few days ago, many institutions had turned positive in their subscription attitudes.

In fact, in terms of business model, small-win technology chooses a story type that is easier to understand in the foreign capital market - breaking into the credit card compensation market. According to the data of Xiao win technology prospectus, the main loan products of the platform include credit card, loan and loan. Among them, the card lending business rose rapidly: in 2016, only 0.9% of its matching loans, but by 2017 and the first half of 2018, the number has reached 36.7% and 69.6%, becoming the core business.

According to the central bank, by the second quarter of 2018, the total number of credit cards issued in China had reached 638 million, an increase of 22.7% compared with the same period last year; the per capita card holdings were only 0.46. According to the Oliver Wyman report, the balance of China's credit card balance transfer loans is expected to grow from 46 billion yuan in 2017 to 441 billion yuan in 2021, a compound annual growth rate of 76.0%.

Li Guangyao, vice president of online lending Tianyan, told reporters: Compared with the previous listing platform, the credit card compensation model of the crowd level is relatively high quality, "the cardholders often credit coverage and good record, market participants in this field in recent years formed a certain amount of data accumulation, making commercial value appear."

It is worth noting that deep cooperation with Zongan Online was once the weight of the rise of small-win technology and confidence, which was refined in the small-win prospectus as an important core competitiveness. With the success of its listing, will the impact of Zhong an online be gradually reduced? Cheng said he would still maintain close cooperation, but he also sought to introduce more insurance institutions.

Differentiation of consumption finance mode

In fact, with the rise of the credit card compensation market, the same type of institutions have tried to water the capital market.

In the first half of this year, 2003.HK, which also focused on credit card compensation market, landed on Hong Kong stocks. According to the report, by the end of June 2008, the company's revenue was 1.27 billion yuan, an increase of 15.5% over the same period of the year; the adjusted net profit was 95.6 million yuan. However, some people in the industry told reporters that because Victor Focus on the asset side, only docking institutional funds, business diversity and profitability and win-win technology are not completely comparable.

Obviously, market participants in credit card compensation business are indeed harvesting. According to people familiar with the matter, Samoye Golden Garment, which also focuses on this area, also intends to prepare for landing in the U.S. stock market, or will submit an IPO document in the near future. So this year, the top 3 players in this market segment will most likely complete the listing.

Indeed, driven by factors such as the outbreak of China's consumer financial markets and domestic Internet lending quotas, most of the financial technology institutions that landed on U.S. stocks have focused on this sector. But from a micro perspective, these institutions are not exactly homogeneous in market stratification and customer choice.

Lee Kuan Yew told reporters that the U.S. listed financial and technological institutions are generally divided into two camps: before, pleasant loans, and loans mostly for 1 to 3 years, the amount of mostly 20,000 to 140,000 yuan, early from the majority of offline borrowers. The loan, credit and rich, etc. pay more attention to the consumer loan installment business, the term is mostly within a year, focusing on the short-term, the amount is between 3000 yuan to 20000 yuan.

And if you compare the small climax of institutions that went public at the end of last year, one of the salient features of this small climax is the focus on more subdivisive areas, with greater emphasis on data value and wind-driven models driven by the complete online acquisition and completion of the borrowing process.

Senior industry sources told reporters that the consumer finance platform to earn profits is going in two directions: one is to cover the risk with high interest rate returns, prior to the rise of blue-collar people's cash loans is in line with this law; the other is to carry out accurate risk pricing through moderate interest rates, relative to the latter's wind control capability requirements. It's higher. "In the case of extremely limited room for interest rate diversion, it would be difficult to make profits if bad debts could not be controlled within a limited range by wind control."

Zhang Jianliang, CEO of Rongzhi Home, told reporters that institutions usually design different credit products to cover different groups through interest rates, scenarios, quotas and other dimensions. If interest rates change by three percentage points, they will form a group of people. Different groups correspond to different wind control strategies.

According to the prospectus data, from the first half of 2008, the typical products of small-win card loans and small-win loan annual rate fluctuations range from 9.98% to 36.00% and 11.47% to 21.61% respectively. In fact, it also describes the value of loan differentiation pricing established by this institutional model.

In fact, with the financial technology landing on the "normalization" of the capital market, how to tell new stories to the capital market is becoming a core challenge for institutions. Especially in this industry shock, some listed companies are also affected by liquidity constraints. From this point of view, listing or not can not become a magic weapon for enterprises to increase confidence, before the business scale, length of exhibition, profit performance and other factors are also moving towards micro and detailed, and ultimately to penetrate the business model and wind control quality.

And some industry insiders have pointed out that the current U.S. financial technology companies are in the critical moment of the continued downturn in Internet lending, before the big good is still a regulatory signal, and whether the listing of some headquarters can stimulate confidence in the domestic market and stimulate the next round of listing trend is worthy of attention. Whether these headquarters will continue to amplify the Matthew effect through acquisitions and mergers of some platforms in this wave of industry consolidation also needs to be observed.

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