Survival or destruction, how to look at the development process of Internet finance

In 2016, the cumulative number of suspended and problematic platforms reached 1,741. At that time, some people questioned, is there a future for Internet finance? However, the data gives the answer, and the annual transaction volume of the online loan industry in 2016 reached 100 million yuan, an increase of 110% compared with the annual online loan turnover in 2015 (982.3 billion yuan).

High growth has brought out the market's recognition of Internet finance, but what should be done? In 2016, the regulator launched a special rectification in the field of Internet finance nationwide, with full coverage of online payment, online lending, equity crowdfunding, and Internet insurance, and on August 14, the "Guidelines for the Depository Business of Online Lending Funds (Draft for Comments)" was issued, and the most "lethal" of the draft was to propose that "the depository bank should perform the supervision responsibility of customer funds, and should not be outsourced or undertaken by cooperative institutions. Online lending institutions and third-party institutions shall not be entrusted to open transaction settlement fund accounts for lenders and borrowers on their behalf." On August 24, the "Interim Measures for the Management of Business Activities of Online Lending Information Intermediaries" was issued, which was known as the strictest supervision in history because it stipulated that the upper limit of P2P online lending for individual loans on a single platform exceeded 200,000 yuan.

However, after the supervision, the Internet financial institutions were not managed to death, but the Internet financial institutions more recognized the consensus of standardized development, and all enterprises have signed contracts with commercial banks to further realize the standardized development in the way of fund depository, such as the direct connection between the bank and the bank of Xi'an, which is an effort to make more standardized business development, and it is also to realize the leapfrog development of the asset side, with multiple business directions, multiple asset types, multiple capital scales, multiple risk characteristics, and multiple periods of comprehensive asset ends. Improve the overall risk control level of the asset side and better meet the needs of customers for multiple risks, terms and returns.

China's Internet finance can be roughly divided into three stages of development. The first stage is the Internet stage of the traditional financial industry from the 90s to 2005 in the 20th century; The second stage is third-party payments around 2005-2011.

the vigorous development of the city; The third stage is the development stage of the Internet's substantive financial business since 2011. In the process of the development of Internet finance, domestic Internet finance presents a variety of business models and operating mechanisms.

Extended Resources: Internet Finance.

1. Mutual enlightenment and online finance is a traditional financial industry.

An emerging field combined with the spirit of the Internet. Broadly speaking, all financial formats with the spirit of the Internet are collectively referred to as Internet finance. From a narrow financial point of view, it should be defined at the level related to the credit circulation of money, that is, the ways and means to achieve financial integration relying on the Internet.

Modern information technology represented by the Internet, especially mobile payment, cloud computing, and social networking.

and search engines, which will have a fundamental impact on human financial models. The Internet finance model will become mainstream in the next 20 years. Theoretically, any Internet application involving generalized finance should be Internet finance, which is in a period of rapid development, and now has six major Internet financial models, including third-party payment, P2P online lending, big data finance, crowdfunding, information-based financial institutions, and Internet financial portals.

2. Internet finance (IT FIN) refers to the use of Internet technology by traditional financial institutions and Internet enterprises.

and information and communication technology in the realization of financing, payment, investment and information intermediary services of new financial business models. Internet finance is a new financial business model in which traditional financial institutions and Internet enterprises (hereinafter referred to as practitioners) use Internet technology and information and communication technology to realize financing, payment, investment and information intermediary services.

The deep integration of the Internet and finance is the trend of the times, which will have a more far-reaching impact on financial products, businesses, organizations and services.

3. Internet finance is promoting small and micro enterprises.

It has played an irreplaceable and positive role in the development and expansion of employment, opening the door to mass entrepreneurship and innovation. Promoting the healthy development of Internet finance is conducive to improving the quality of financial services.

and efficiency, deepen financial reform, promote financial innovation and development, expand the opening up of the financial industry, and build a multi-level financial system. As a new thing, Internet finance needs to be driven by the market to encourage innovation, and policy assistance to promote development.

Analysis of the current situation and development prospects of China's Internet financial market There is still huge room for development in the market

The market scale has achieved rapid growth

In recent years, the domestic demand for automobile consumption and mu expenses has become increasingly strong, the financial demand of all parties on the automotive industry chain has been increasing, and the scale of the Internet automobile finance market has increased year by year. Statistics show that in 2018, the market size of China's Internet auto finance was 100 million yuan, and in 2019, the market size of China's Internet + auto finance market was about 100 million yuan.

With the popularization of the Internet and communication technology, Internet auto finance has become a blue ocean for many institutions to compete. At present, a number of Internet companies in China have been involved in the auto finance industry, mainly in auto insurance, auto loans, auto financial leasing, and second-hand car consumer loans.

With the gradual change of mainstream consumer consciousness to advanced consumption, the demand for credit consumption of durable goods such as 3C electronic products and automobiles with consumer finance as the core is increasing. From the perspective of development model, the development model of Internet + auto finance mainly includes C2C integrated service platform model, auto e-commerce model, auto manufacturer model, auto finance P2P model, giant comprehensive model and dealer model.

There is huge room for the development of Internet auto finance

At present, the traditional auto finance business is facing two major opportunities: one is that the micro-growth of the auto market has become the new normal, and the profit of new car sales is getting lower and lower, both car companies and dealers have begun to shift their business focus to the aftermarket, and the other is that the consumer group of automobiles is getting younger and younger, and the proportion of mobile Internet is getting heavier and heavier, and the use of Internet technology to actively explore the market has become the future development direction of the auto finance industry.

Compared with online auto finance, traditional auto loan approval is relatively slow, the review materials are more cumbersome, and the down payment is higher. The forward-looking analysis believes that the future integration and development of companies in the banking, e-commerce and auto finance professional services industries will be the main trend of the future development of the industry. It is expected that by 2025, China's Internet call cover + auto finance will exceed 1.5 trillion yuan.

As an emerging business model of the country, the development of Internet finance is carried out through the three mainstream models of "Internet + payment", "Internet + lending" and "Internet + wealth management". Among them, Internet finance refers to the new Huchun-type financial business model in which traditional financial institutions and Internet enterprises use the Internet and information and communication technology to realize financial integration, payment, investment and information intermediary services.

Compared with the past, Internet finance is no longer carried out in the form of simple network business, but has become an organic whole that closely combines network technology and financial business, and the differences in product nature and services between traditional financial institutions and Internet financial institutions are also shrinking.

Internet finance is not a simple combination of the Internet and the financial industry, and it is a new model and new business that is accepted by users (especially the acceptance of e-commerce), of course, in order to adapt to new needs. What is the history of the development of online finance?

1. What is online finance?

Internet finance is a new financial business model in which traditional financial institutions and network enterprises (hereinafter collectively referred to as employment agencies) use network technology and information and communication technology to realize financial integration, payment, investment and information intermediary services. The deep integration of the Internet and finance is the trend of the times, which will have a deeper impact on financial products, businesses, organizations and services. Internet finance has played a positive role in promoting the development of small and medium-sized enterprises and expanding employment, and has opened the door for mass entrepreneurship and innovation.

Promoting the healthy development of Internet finance is conducive to improving the quality and efficiency of financial services, deepening financial reform, promoting financial innovation and development, expanding the opening up of the financial industry to the outside world, and building a multi-level financial system. As a new thing, online finance needs to be market-driven, encourage innovation, and also need policy assistance to promote development.

2. The history of network development.

The development history of China's online finance is much shorter than that of developed economies such as the United States and Europe. So far, China's Internet finance can be roughly divided into three stages of development: the first stage is the Internetization stage of the traditional financial industry around the 1990s and 2005, the second stage is the third-party payment boom stage from 2005 to 2011, and the third stage is the development stage of the Internet substantive financial business since 2011.

In the process of the development of Internet finance, domestic Internet finance presents a variety of business models and operating mechanisms.

3. Network financial structure.

The current structure of Internet finance is composed of traditional financial institutions and non-financial institutions. Traditional financial institutions are mainly non-financial institutions that use the Internet innovation and electrical business innovation and APP software of traditional financial business, mainly electric business enterprises that use Internet technology for financial operations, online loan platforms (P2P) models, online investment platforms for procurement models, mobile asset management APPs for financial (models), third-party payment platforms, etc.