The only product to enter the financial sector is to get rid of gold.


The only product to enter the financial sector is to get rid of gold.

The only product to enter the financial sector is to get rid of gold.

Times weekly Reporter Zeng Ling Jun Intern Wu Siyu

Originating from Guangzhou

Times weekly reporter recently confirmed to the only product finance that it is currently applying for consumer financial license.

According to previous information, Weipinghui and Fubonghua Bank plan to jointly launch the establishment of a consumer finance company in Sichuan, to be called Weipinghui Fubong Consumer Finance Co., Ltd. Fubonghua will invest 125 million yuan, accounting for 25% of its shares, while Material Finance has not disclosed the amount of its contribution and the proportion of its shares, "there is no further progress to disclose".

Recently, consumer finance has also launched a licence battle. According to incomplete statistics, this year the two companies were licensed in September, the current queue for approval of about 12 companies. On September 29, Xiamen Jinmeixin Consumer Finance Co., Ltd. was approved by the Xiamen Banking Regulatory Bureau, which is the first consumer finance company to be approved for operation since the merger of the China Banking and Insurance Regulatory Commission and the first cross-strait joint venture consumer finance company.

Liu Xiaofeng, general manager of small and medium-sized finance, told TIME that many capitals are closely watching the cake of consumer finance, which is related to the adjustment of financial supervision. "We are concerned about tighter regulation of Internet finance, suspension of licences for online small loans, and policy support for consumer finance. This attracts more capital from the Internet finance, network small loans and other areas to shift to consumer finance, making consumer finance again set off a license craze.

In recent years, more and more e-commerce platforms carry out financial related business, intending to share a cup of cake in the financial field. There are Ali, Jingdong, Gome and Suning in the past, and Weiquan also started its financial services business in 2013. The financial services provided by Weiquan include supply chain finance, consumer loans, financial management, insurance and so on. It has obtained licences for small loans, factoring, insurance consignment and third-party payment.

Join the Bank of Fubon

Since this year, a large number of new enterprises, such as drip, American Troupe, and today's headline, have tried to test the consumer financial market, Ali, Jingdong and other veteran players have also carried out business innovation, a large number of capital focused on consumer finance this trillion-level market.

According to a research report issued by the China Business Industry Research Institute, China's consumer finance has developed rapidly in the five years from 2013 to 2017. The growth rate of consumer credit balance, excluding housing loans, has been maintained at more than 20%, with an average compound annual growth rate of 24.7%.

Only product finance also aims at consumer finance license. If approved by the regulatory authorities, the company will become the second mainland-Taiwan joint-venture consumer finance company after Kim Mei-xin. Fubon Hua Bank is under the control of Fubang. Fubon gold control official website shows that it is the second largest financial holding company in Taiwan, China, with a wide range of business. By the end of the second quarter of 2018, Fubon's assets had totalled NT $7.19 trillion (about 1.6 trillion yuan) and net income of NT $207.882 billion (about 46.499 billion yuan).

"Banks have low-cost capital, obvious advantages; only goods will have a consumer scene and customer groups, the combination of the two is a good choice." The person in charge of a licensed Consumer Finance Companies told the times weekly reporter.

In fact, almost all the companies queuing up to apply for licences have banks, such as Bank of Guangzhou, Bank of Gansu and so on.

Vip.com's plan to set up Consumer Finance Companies is not the first time to wade in this area. At the end of 2015, vip.com formally launched the first consumer finance product, "the only product". This application for a consumer finance licence reflects its determination to further enter the consumer financial market.

In addition to consumer finance, vip.com also strides forward in other financial areas. Since the establishment of the Financial Services Department in 2013 and the first financial involvement, Weipinghui has established Guangzhou Weipinghui Microfinance Co., Ltd. and Shanghai Weipinghui Microfinance Co., Ltd. in 2014 and 2015, and successfully won two online microfinance licenses.

In 2015, the Internet Finance Department was set up for the online "flower only" and financial channel businesses. During the same period, the Commission also took the factoring licence, and established a commercial factoring company, began to provide services for B-end suppliers and C-end consumers.

At the beginning of 2017, vip.com completed the acquisition and renaming of Zhejiang bainu and obtained the third party payment license. However, the current third party payment market pattern is more stable, and Alipay and WeChat payments occupy most of the market. Up to now, we have obtained a variety of financial licences, including small loans, factoring, insurance consignment, third-party payment.

In May 2017, Weiquan will officially announce the split of the financial business, the logic of the split is actually very simple, domestic enterprises are often easier to get a financial license. After splitting, the only finance started the first round of financing, but so far there is no new news. "Financing of the only finance is advancing smoothly." Only product financial reply said.

In recent days, Material Finance has explained the logic of distribution finance to Times: on the one hand, it can create a complete ecological closed-loop for users; on the other hand, financial business can also effectively feed back the development of e-commerce business, and promote the unit price of customers and overall sales.

Liu Xiaofeng analysis, e-commerce enterprises through years of deep ploughing, accumulate rich customer resources, these customers have high frequency of consumption, high repurchase rate and other characteristics, their shopping needs often radiate the whole family life cycle, which makes e-commerce enterprises born with financial genes - flow and scenarios.

Jingdong users look hard

Although materialist finance has obtained many licences, it lacks some core licences, such as bank, insurance and so on. One way of thinking is to cooperate with licensed financial institutions. Time magazine correspondent combed, in recent years with a number of banks to carry out business, such as February this year, Weipin will be in alliance with the Bank of Shanghai, signed a strategic cooperation agreement in consumer loans, Internet payments and other areas of cooperation.

"If the e-commerce enterprises want to get involved in financial business, they still need to make up for the shortcomings of licence, capital, credit and so on." Liu Xiaofeng analysis, and cooperation with financial institutions, to a certain extent, make up for this short board.

Zhu Jing, general manager of Weiwei Finance, has previously introduced that more than 80% of the main customers of Weiwei Financial Services are female users. It is also this special customer structure that has brought huge traffic and data advantages to vip.com.

"The VIP group has the characteristics of high repurchase rate, good reputation and high unit price. It is a very high quality base for the development of financial business. Relying on these high-quality customers, materialistic finance is conducive to radiating services to the financial needs of household users, forming its own characteristics of differentiated development, and further become a new growth engine of materialistic society. Only product financial reply said.

However, in the future development of commodity-oriented finance is still facing a lot of pressure and challenges, for example, the number of users is less than Ali, Jingdong, financial products are less competitive than the same kind. For electric business enterprises, traffic and the number of customers are "moat". Over the past 12 months to the end of March, 2018, the number of active users at Weiquan was 56.6 million, compared with 552 million in Ali and 302 million in Jingdong, the same business platform.

Not only does the user base differ enormously from the same industry, but the growth rate of active users has also dropped dramatically compared with the previous two years. According to the 2017 annual report, the platform's active users in that year increased by 11% compared with 2016, compared with the previous two years 42% and 51% of the growth rate of active users has a significant slowdown.

On the other hand, there is no obvious competitive advantage compared to similar products. "In the consumer financial market, the major e-commerce giants have already partitioned the domestic market by virtue of their own platform size and the number of users absolute advantage, the user habits have basically formed and difficult to change, and then materialistic finance if stuck to the existing business form, want to get a share of the extremely difficult." An inconvenient third party analyst told the times weekly reporter.


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