Liu Xingliang: How to understand internet finance?

The following is an interview record of the Voice of Economy of the Central Bank of China, “Transaction Live”.

Moderator: Immediately connect Internet experts Liu Xingliang. Recently, we have noticed that the most eye-catching thing in the domestic Internet industry is the official launch of Yue Bao on June 17 last month. It can be said that this incident has caused widespread concern and comments, and we also see the like in the capital market. Kim Jong Sook, as the support system for the docking system of the direct sales system and Alipay system of Tianhong Fund, was affected by such news. Its share price has risen all the way. Although such a concept has been sought after in the capital market, in fact, we also Concerned that there are some analysts say that Internet finance is a very difficult chore. For example, to take balance Bao, it will face a lot of pressure on cost management. How do you see such concerns?

Liu Xingliang: Compared to this Ali Group has always been relatively high-profile, the introduction of this time Yu Bao relatively low-key, but the balance of a word to launch a word is hot, I also join in the fun, put 4,000 yuan, be regarded as an attempt It. Why is it so hot? The first reason is that the balance of YUJIANB’s own description is full of temptations. Currently, the annual yield of money funds in China is generally between 3% and 4%, and the current account is usually only 3 points. In simple terms, you are 10,000 yuan. You only need more than 30 bucks for current deposits. You can get 300 to 400 bucks a year through the balance of your income. This income is still very impressive, which is about ten times higher than the current period. Secondly, many users have been relying on Alipay not only for Alipay but also for third-party payments such as Financial Link. They are all underwriting funds, which means that there is no use in my money, but these companies do not benefit, and many experts and scholars have strongly appealed to them before. The three-party payment should give the payment user balance a certain amount of revenue for them. The third-party payment reserve management method issued in 2011 also mentions the balance of the customer’s undertaking funds in Alipay. Alipay has the power to purchase the agreement deposit. The income obtained is owned by Alipay, meaning that it can benefit, but the user does not. Therefore, targeting such a new regulation, or saying that in this context, Alibaba launches Yu Bao, it should be said that the users have accounted for the funds in Alipay, and the banner of high yield, so it is also a hot phenomenon, including me Such people have to join in such excitement. In the third aspect, Yu Tsang believes that not only Yu Bao, but also related products will be launched in the future. It provides our investors with more options for investment and financial management. I think that our industry has always been talking about innovation and innovation. Should be the active exploration of market innovation. But hot and unpopular data is the best answer. I see the latest data balance Bao on the line for 18 days, the user exceeded 2.5 million, equivalent to 1900 per capita, which is an ordinary fund product is difficult to reach such a scale.

Moderator: So some people say that less than three weeks, the history of the country's largest number of users of the largest currency fund products was born.

Moderator: On the one hand, you just talked about the support of existing themes as well as performance. There are some comments in the front that also say that there may be great cost management pressure for Yu Bao. Is your analysis not the case?

Liu Xingliang: Yes, that is why the fund products like this include the possibility that the fund is not very easy for people to understand. Let's say the loan. You look at the bank loan. Why does it have a small amount? The cost of management is very high. Many banks require that they have to start at one million. It is possible that small and medium-sized banks may also need to start at 30,500,000, because each of its management costs is very high. Why is there a few financial loans like Ali? Thousands of thousands of production? Because of the Internet, it has made such costs very heavy, including Yuen Po, who can use such platform advantages through the Internet's technical means. It reduces the cost of the field to a very low level, although it makes a profit. You can still get a certain amount of profit in it, so it is managed by banks and funds in the ordinary sense. It still has some profit margins.

Moderator: If you expand it again, in fact, the birth of Yuebao is also a representative product of the popular Internet finance nowadays. There are also many discussions on Internet finance. How do you understand the concept of Internet finance?

Liu Xingliang: Internet finance is indeed for our common people, this is a relatively deep concept. In our industry, there is currently no unified standard or definition. I think that internet finance is not a simple Internet technology finance, but it should be based on the idea of ​​the Internet. The technology is only as its necessary support, otherwise it can Called Technology Finance or New Technology Finance, the concept of the Internet has gone beyond computer technology itself. It can only represent things like interaction, management and networking. Its core is no longer a technology but an individual. It is a participant. Therefore, I am more willing to regard it as a new form of participation rather than an upgraded version of traditional management technology or something. We know that the idea of ​​the Internet is a relatively difficult concept to understand. It is more efficient sharing, equal freedom or trust, and it is a grid of sharing and interconnection. But each individual can produce and produce content, and each person shares the same channels. Each person is close to equality, and they have a certain amount of trust and respect. Therefore, our future in Internet finance is a kind of financial concept based on the idea of ​​the Internet. Everyone will become one of them and have sufficient power and means to participate in such competition.

Moderator: We look at third-party payments As of now, the central bank has issued third-party payment licenses for 197 companies. The market shares like Alipay and Fortune Communications both reached 49% and 20.4%. UnionPay is now ranked number one. Third, the market share of 8.4% gives the impression that the pattern of monopolistic competition seems to have taken shape. What kind of judgments do you have about the development prospects of third-party payment platforms?

Liu Xingliang: Compared to some of our previous concepts, the form of third-party payment in the market is relatively long-term research and development. Similar to the third-party payment represented by Alipay, it already has such a gradual concept in the lives of Internet users, and We also have a relatively wide range of applications. So for third-party payment, I am an optimist for myself. I am very optimistic about the future development of this field. And after so many years of development, we now have a new stage in third-party payment. We are integrating with online and offline technologies, including the maturity of current mobile Internet technologies, including the new form of O20 to join the industry. With more extensive and more dynamic development, it should be said that Internet third-party payment has become the Internet industry and the mobile Internet industry. We have become an indispensable part of every financial life, and it has become a lifestyle that every Internet user cannot live without now. .

Moderator: But do you think its development is based on the development of the entire e-commerce?

Liu Xingliang: Yes, the development of e-commerce has brought a very direct boost to third-party payment. For simplicity, we can for example provide third-party payment such as Alipay, which is due to the rapid development of Taobao. We want to shop. We want merchants to sell things. When buyers go shopping, Alipay pays as a third party and initially reaches the best. The effect is similar to the effect of guarantee. We can first hit the money to him and get it back after receiving the goods. This avoids the risk of trust without face-to-face transactions and solves such problems.

Moderator: Now we are talking about a very popular WeChat, and recent news that WeChat will push the payment function on the line, the source of the news is this, Tencent WeChat product assistant general manager Zeng Ming, recently at the Tencent partner conference The WeChat sub-forum disclosed that the version of WeChat 5.0 is determined to launch features to be paid, enabling online payment and offline payment. China Unicom has already tested the business of recharging calls. Do you think WeChat launched the online payment function? What kind of impact may it have on third party payments?

Liu Xingliang: In essence, WeChat is also a form of third-party payment, so it is also a product of third-party payment development to a certain stage, but it also has its own particularity. What is the specificity? Because it is now also a very widely used social tool. There are many public accounts in this social tool. Many companies do some marketing or interaction inside, and doing some customer management is similar to this. Therefore, WeChat payment means that it will use the payment function in the WeChat function number to realize the purchase of some recharge, train tickets and airline tickets. In the future, there will be some consumption of digital content or digital virtual goods. Users may use other applications or lines. Under the purchase, such payments can be completed through WeChat, so special tools like WeChat third-party payment inside it will promote this whole as it has a good use of such technology and such user's affinity for users to use It is more convenient and it will promote the industry to new heights. I believe that in the future more and more companies and individuals will use WeChat to pay for such a product. In the future, not only WeChat, but also others will be more convenient. The third-party payment tools are no longer the same as the previous appearances of Alipay. It is another kind of face. The people are more acceptable, more affinity, or more convenient and quicker, to help us to achieve the line. Live on.

Moderator: But from a different point of view, will be more and more to join, the third-party payment will become increasingly fierce competition. For example, group purchase has always been very popular, and they have embraced it. However, it seems that there are not many group buying websites that can survive. Do you think third-party payment will also go through such a stage?

Liu Xingliang: You will go through such a stage. The group purchase you just mentioned is a good example. When it develops rapidly, we call the 1000 group war. We may need to have hundreds of companies to compete, and we certainly don’t need to so much. Including third-party payment, the central bank should have already issued more than 100 licenses. I think it is still more. It will eventually develop oligopoly. The current oligarchization has become more obvious. For example, the program mentioned Alipay, too. Wealthstone, they have reached such a monopoly position, just saying that our future is like WeChat. Its new form may have a certain influence on the previous pattern, but I think it will not have a fundamental impact. In the future, as long as this area is also an oligarchy to survive such a situation.

Moderator: In front of Mr. Liu Xingliang, he also mentioned that the future should be a market with a small number of oligopoly third-party payments. Including the original analysis of the dairy market, the guests' views were more consistent and they felt that there were several oligarchs. Existence seems to be more conducive to the healthy development of this market. In fact, here I would like to ask Mr. Liu Xingliang. Why, for example, if there are only three remaining such monopolies, then the trend of this market will be better? Because everyone thinks in the traditional sense, if more and more competitors in the industry are not able to promote competition between the industries, the more people can get more benefits, but if concentrated resources are concentrated in a few, will The market is not particularly good news?

Liu Xingliang: Yes, for ordinary people, the feeling is that the fiercer competition is, the worse the people are, the worse it is from the perspective of economics. Maybe the third party is not paying special attention to the people. Take the group you just said. It is a good example to give an example. If we say that we are still fighting a thousand missions, what kind of bad consequences will it have? For example, it would compete maliciously with offline hot pot restaurants. The last one said that you would need to give me a 70% discount, and another said that you would get 40% off, 50% off, and vicious competition, and it would eventually lead to hot pot restaurants. No money, a good ecological chain, it must be able to have interests in every aspect, this is a good industrial chain, it will lead to excessive vicious competition This is the first aspect. In the second area, if the competition is too fierce, just take the hot pot shop as an example. If you accept too many group purchases, its customer reception capacity is limited. When you have too many customers, its service quality. It must be declining, so the quality of the dishes enjoyed by everyone must be declining.

Moderator: It is equivalent to saying that when there are only a few monopoly markets, there is not only a competitive relationship but also a good balance in this market.

Liu Xingliang: If there are only three remaining homes, these three homes have reached a certain scale, they will cherish their own feathers, they will be more strict on their own management, and it may also serve as a (former), some stores. There will be a good market order. For example, when we go to this hot pot restaurant, we must not lose less than a few times. We must have a hot pot restaurant and do not have vicious competition. Second, we will not make some bad moves to do bad things. Things may have better results in all aspects of industry self-regulation.

Moderator: First of all, let's look at how many people in all media have reported that lending should be a very fresh lending model. Now it has entered our lives. How do you evaluate it for the development of such a financial model?

Liu Xingliang: In the past two years, personal Internet loans like what we call P2B have been very active in the private sector in the past two years, and it has played a very good effect in many financial activities. There is a good feature like this in the traditional Under the financial system, it is very difficult for you to get a small, fast micro-loan. You go to our banking system. Such an online loan can achieve this effect very well. It has several characteristics. The first feature is that it has a relatively low amount, which is generally less than 100,000 loans. The second feature is that it will be distributed to several people. For example, if there is a person who puts forward demand, he needs to loan 80,000 yuan. This website, which is an online loan, may divide the loan into four parts, with four people coming. Claim, each of you out of 20,000 loans to this person, mutual dilution of the risk, another feature cycle is very short, many months or even a month or two must be repaid, so it is very active, very flexible, it started When the first loan is made, it will not be credited to a too high amount. Otherwise, it would be a trap. In half of it, it may only give you up to 2 to 50,000 loans. It will be your second and third time. When you accumulate credit, you can lend various kinds of money. Of course, he also asks you to provide more qualifications. For example, if the company has more things to submit, your own property is submitted. After it has such flexible features, it has to be in our tradition. The needs of this part of the world that cannot be satisfied in the world have been solved. At the same time, it may breed a lot of people. Why do so many people go to lend out? Cities like Beijing and Shanghai will involve credit cards, and credit cards may have 30,000 to 50,000 credits. He uses this credit card to get money out. Then the money is released. For example, he may borrow for 6 months. After 1 month, he will return the credit card. Many people will use credit cards to do such a business.

Moderator: Just now you said that this feature is very lively and flexible. In fact, I see that the amount is relatively low. It includes a very decentralized loan. It also has a short cycle. It is not allowed to borrow for the first time. So many, later, as your credit rating system increases may allow you to borrow more, it may all be for the words "to avoid risks", not just for flexibility.

Moderator: Especially for platform loans, I think its development is very important, just like the credit assessment you mentioned earlier is very important. I would like to ask your last question. For the stock market investors, the concept that is hot now is third-party payment and internet finance. We very much hope to know exactly what the stage of development is now if it is now in the process of burning fire. At the money stage, it's a little early for you to invest in such companies, but if it is the right time, we investors can get very good returns. You help us analyze, what kind of stage is the Internet finance represented by third-party payment?

Liu Xingliang: Well, third-party payment has developed to the advanced stage of socialism according to our national system. It has already passed through the socialist junior class. This is the top company in the market. It is worth investing. Their development has entered such a benign nature, and each division of labor will have a certain difference. It does not mean that every family will do everything. It also divides a lot. It may be a bank card receipt. Some of them may be internet payment, some may be issued as prepaid cards. I think that you have a good return on the market. You often come in contact with it. .

Moderator: Thank you very much to Mr. Liu Xingliang, an internet expert, for this time. Goodbye.