With interest rates falling and supervision tightening, the industry is bound to usher in a period of "fine operation". Among many products, Yixianghua is one of the representatives.
Written by | items in western
Produced by | Consumer Finance Channel
3 From 2022, it has been twelve years since the first batch of consumer finance companies initiated the establishment. Standing at this moment, looking back at the past and looking forward to the future, the consumer finance industry is experiencing a critical moment of shifting gears and shifting speeds.
On the one hand, the epidemic factors have not stepped on the industry's brakes, and its impact on asset quality is also lower than some market expectations.
Industrial Research Company previously proposed in its industry report that "consumer finance is the fastest-growing financial sub-industry since 2017." In addition, at this stage, the overall scale of my country's consumer credit market has increased from 19 trillion yuan in 2015 to 45 trillion yuan in 2020. The relevant data of iResearch Consulting predicts that the overall compound growth rate of my country's consumer credit (including mortgage loans) in the next five years can reach 21%.
On the other hand, supervision and rectification have been continuously refined to various institutions and links in the consumer finance industry chain, including information collection, big data risk control, collection, and joint loan models, which have undergone strict governance norms, and the institutions' business development methods and income structure have also undergone major changes. Especially since 2021, with the introduction of a series of laws, regulations and regulatory rules such as the " Personal Information Protection Law " and the " Data Security Law ", the collection and use of data have been subject to stricter restrictions.
With interest rates falling and supervision tightening, the industry is bound to usher in a period of "fine operations". How to achieve gear shifting and shifting while moving forward at high speed tests consumer finance entrants from different backgrounds.
shifting and shifting
Broadly speaking consumer finance industry covers various types such as bank consumer credit departments, licensed consumer finance companies, micro-loan companies, etc., and has shown a good heating trend in various sub-tracks.
Take licensed consumer finance companies as an example. In terms of the number of institutions, since 2020, five consumer finance companies including Xiaomi , Sunshine, Ant , Su Yinkaiki and Vipshop Fubon have been approved for establishment, and all of them were opened in 2021.
Secondly, the intensive capital increase measures of consumer finance companies are enough to reflect the investors' optimism about this track.
Head institutions such as Zhaolian Consumer Finance increased their capital to 10 billion yuan, and Ant Consumer Finance increased its capital to 30 billion yuan in large quantities. Although there have been some twists and turns recently, other institutions such as Su Yinkaiki, which has opened less than a year, and several consumer finance companies that have not increased their capital all year round have increased their capital for various reasons.
Furthermore, the overall performance of consumer finance has heated up significantly since 2021. Asset data and performance data showed a significant increase compared with 2020, and the asset scale and profit growth rate of some institutions hit new highs. Most companies in the industry are actively performing in key indicators such as asset scale, operating income, and net profit growth. The credit card market is not inferior to that of
. People's Bank of China data shows that after experiencing a significant increase in the three years of 2018-2020, the credit card loan balance continued to grow in the first three quarters of 2021. The credit balance of bank cards increased by about 8.25% year-on-year to 8.40 trillion yuan. The asset quality of
has also withstood the test against the background of the epidemic. In the first half of 2021, the non-performing loan rates of the top ten banks showed a decline overall, and the non-performing loan rates of some banks decreased significantly ( Postal Savings Bank and Pudong Development Bank's non-performing loan rates of credit cards decreased by 0.62% and 0.56% respectively). Only one of the top ten banks has seen a rise in the non-performing credit card rate.
And in the financial technology territory, "Yixianghua" is a typical case.
It is understood that Yixianghua provides credit loans and consumer installment services to individuals and enterprises, and at the same time empowers various partners to share financial technology capabilities. On August 25, 2020, Yixianghua App officially launched the Apple App Store. In just over a year, it was selected into the top ten of Aurora's 2021 dark horse APP list, with the number of monthly active users on the platform exceeding one million.
Looking at the overall market trend, the broad consumer finance industry is in a steady upward channel.
Fine operation
But it is worth noting that with the decline in interest rates and the refinement and tightening of supervision, the era of the consumer finance industry judging heroes by scale has to become a thing of the past. It is difficult to continue to run blindly, and the industry needs to "work hard".
has only been more than a year, and the number of monthly active users exceeds one million. "Yixianghua" can be said to be a growth "dark horse" in the consumer finance market.
From the perspective of Yixianghua's development, "fine operation" is its main line throughout the whole process.
risk control capabilities are the embodiment of the core operational capabilities of consumer finance institutions. On this point, Yixianghua has four measures -
· Anti-fraud: Based on the rich practical experience of the senior team, it integrates cutting-edge technologies such as machine learning, knowledge graph, deep learning, natural language processing NLP, and speech recognition to extract the characteristics of fraud laws based on massive data .
· Risk strategy: differentiated strategy deployment and rapid iteration. There are 150 online risk control strategy version iterations every year, 44 different credit strategies, and 50 different decision flows.
· Risk control algorithms and models: The team has 16 years of experience in scoring and modeling, and is good at combining traditional and innovative methods, and based on a deep understanding of the business, it achieves risk control coverage throughout the entire cycle.
· Compliance Management : The data is available and invisible. Focus on information security and compliance analysis, and data use can be traced. Full-link data authorization and closed-loop management.
Secondly, in terms of supervision, the essential requirement for the protection of personal information is the legality and refinement of the use of personal information. To this end, Yixianghua has carried out multiple rounds of iteration and update work, from products to R&D, from data compliance to security teams, and has conducted in-depth research and implementation of relevant laws, regulations and specifications.
Specifically, Yixianghua has established an information security management committee on the top level, as the highest decision-making body for information security and personal information protection. Relying on the Information Security Management Committee, Yixianghua adopts a hierarchical control model, which is closely linked by business departments, security and data compliance departments, and internal audit departments to form the "three lines of defense" for information security and personal information protection.
Go further, in the processing of personal information data, Yixianghua integrates key and core data security technologies such as data identification, data encryption, and data marking to collect different data security technologies according to different stages of data processing.
For example, during the data collection stage, Yixianghua will realize the online and automated detection of user data through technologies such as data identification, privacy compliance monitoring, and interface security detection, and promptly discover problems such as APP collecting data in violation of regulations and over-applying permissions. When user information is collected reasonably and in compliance, Yixianghua will protect data storage and data use through encryption, desensitization, de-identification, data watermarking and other means.
. At the product level, refinement is also reflected in the multidimensionalization of quotas.
It is understood that Yixianghua has achieved continuous upgrades from the original single-model credit to multi-model cross-credit, and can adjust the quota in real time according to the degree of perfection of the information submitted by customers, which can not only ensure the accuracy of customer credit, but also ensure the stability of the customer base.In the
channel, Yixianghua builds independent decision-making processes based on the characteristics of different channels, realizing the independence of API processes, semi-API processes, H5 and its own channels. With the help of constructing a differentiated access + quota + risk pricing matrix, it achieves the "thousands of people" of intelligent decision-making, which can not only adapt to diversified cooperation methods, but also ensures the overall uniformity of the business.
Link entity and empowerment entity
For consumer finance companies, it is not difficult to expand their business volume in the short term. The important thing is to maintain development and steadily advance, which requires the power of "reality".
Take Yixianghua as an example. On the asset side, at the beginning, the target customers were targeted to users who had small financial needs in daily work and life. They have confidence in their financial situation and understand the importance of personal credit. This group often has higher credit levels and consumption is more based on real demands.
In terms of building self-constructing scenarios and building traffic entrances, Yixianghua's approach is to build a real new consumer finance scenario, connect a large number of customers in various scenarios such as travel, shopping, social networking, entertainment, and live broadcasts, and dynamically explore their credit life needs.
Based on its own customer base positioning, Yixianghua launched an installment mall. On the one hand, Yixianghua selects globally characteristic and quality products through in-depth supply chain, checks at all levels, strictly reviews and category screening, and provides users with digital 3C, home appliances, beauty, light luxury, clothing, shoes and bags, food and other products, with SKUs exceeding 100,000+. It not only ensures the satisfaction of consumption needs of high-credit groups, but also ensures product quality and improves consumption experience.
On the other hand, by accessing life service scenarios, Yixianghua connects a large number of customers in various scenarios such as travel, shopping, social networking, entertainment, and live broadcasts, and provides users with products that best meet personal consumption needs in segmented scenarios.
Compared with many consumer finance companies at that time, they chose to cooperate with Internet companies as a "funding channel". Although the investment cost of self-built scenarios is higher and the return on investment is longer, they can create value in a longer cycle.
In addition to C-end users, Yixianghua also actively opens up the B-end, connects real enterprises, and guides diversified funds to the capillaries of the real economy.
Through cooperation with ERP, enterprise SaaS, tax communication and other platforms, Yixianghua quickly covers hundreds of thousands of small and micro customers. Benefiting enterprises are spread across 300 cities and 2,000 counties across the country, meeting the financing needs of more than 7 billion yuan from industries such as wholesale and retail, traditional manufacturing, accommodation and catering, indirectly supporting the employment of hundreds of thousands of people, and creating huge economic and social value.
On the capital side, Yixianghua continues to introduce partners such as banks, trusts, consumer finance companies and microfinance loans, and 100% of the business funds come from licensed financial institutions.
In this process, Yixianghua also actively provides support for the digital transformation of in banks and other financial institutions, helping financial institutions to strengthen the construction of capacity building such as traffic operations, digital and intelligent risk control, broaden the boundaries of financial services, improve the efficiency and experience of financial services, and achieve cost reduction and efficiency improvement.
In short, based on the advantages of technological and risk control capabilities accumulated over the years in the field of financial technology, Yixianghua plays the role of the "digital guide" on the map of inclusive finance - effectively matching funds from licensed financial institutions with diverse life scenarios and the financial needs of small and micro entities.
connects financial institutions with individuals and small and micro enterprises, which not only meets the demands of traditional financial institutions to find high-quality assets, but also meets the real and reasonable financing needs in multiple scenarios.
From the macro perspective, the consumer finance industry is entering a critical period of "shifting gears and shifting", with a broad market, but competition among institutions with different sizes and huge backgrounds in the industry is becoming increasingly fierce.
How to integrate its own advantageous resources and establish a market positioning that is different from competitors while meeting regulatory requirements, and then form differentiated and sustainable development advantages through "sophisticated cultivation", test every market participant. The industry has not stopped, and Yixianghua and other players still need to work hard.
