Xiaomi Consumption Gold takes over small loans Tianxing Digital Branch business continues to adjust

Following ant group, Xiaomi's Xiaomi Consumer Gold began to undertake the personal consumer credit business of Tianxing Digital.

Industry insiders said that Xiaomi's adjustment or reference to Ant Group's plan. At present, Ant Group's Huabei and Borrowing have completed brand isolation, which belongs to the independent brand of Ant Consumption Gold, and the business of Ant's small loan company has withdrawn from the market in an orderly manner.

At present, the market's wait-and-see mood on how to spin off finance and technology is increasing, and the partial spin-off of financial technology not only caters to regulatory needs, but also makes it easier to comply with regulations, and the business boundaries are further clarified, which is conducive to solving problems such as regulatory gaps and regulatory arbitrage.

Nowadays, under the background of stricter supervision, Internet finance has gradually bid farewell to the barbaric era. Xiaomi, which has been working in the financial field for 7 years, has won more than ten financial licenses such as insurance, factoring, and banking, and initiated the establishment of Singapore digital banking licenses with other institutions, basically realizing the layout of the full license. It is not difficult to see that with the tightening of supervision, brand upgrading and other factors, Xiaomi's business adjustment in the financial field will also be increasingly tightened.

Celestial Numbers "Slim down

According to media reports, recently, Xiaomi's financial technology sector Tianxing Digital Branch is reducing its business line. According to the report, Tianxing Digital Planning planned to reduce the original 900-person team by 1/3 as early as a few years ago, and the original 7 business lines will only retain the main lines such as supply chain finance and consumer finance that are still in the rising period.

In this regard, the official response of Tianxing Digital Department said, "There is no reduction in the team of Tianxing Digital, the relevant business lines in line with the principle of 'focusing on the main business, service entities', in the fourth quarter of 2021, the organizational structure was adjusted, and the relevant business lines were integrated into the Digital Industry Finance Department and the Digital Retail Finance Department, and the Digital Retail Finance Department consisted of credit technology business department, comprehensive business department, payment business department and international business department." The adjustment of the organizational structure is to better form a business synergy to digitally serve entity enterprises, serve the main business, serve the majority of customers, promote the process of industrial digitalization, and support the development of the digital economy. ”

Although it responds to the situation that "there is no reduction in the team", in the past two years, it has experienced brand upgrades, business changes, and personnel adjustments, and Xiaomi's financial business is also constantly adjusting. The latest response of Tianxing Digital Science said that Xiaomi Consumption Gold is undertaking the personal consumer credit business of Tianxing Digital In an orderly manner.

According to the Tianxing Financial APP, the "Suixing Lending" service under Tianxing Digital Has been changed to be provided by Xiaomi Consumption Gold, which was previously provided by Xiaomi Small Loan.

According to the Tianxing Financial User Service Agreement on the page, the agreement is still signed by the registered users of Tianxing Financial who are eligible and can use the Xiaomi account service with Tianxing Digital Technology Co., Ltd., Chongqing Xiaomi Microfinance Co., Ltd., Shanghai Xiaomi Financial Information Service Co., Ltd., Beijing Houji Insurance Brokerage Co., Ltd., Jiefu Ruitong Co., Ltd. and other affiliates of Xiaomi Group and their cooperative operating units. It does not mention xiaomi consumption, or it means that the work began soon.

Industry insiders said that Xiaomi's adjustment or reference to Ant Group's plan. At present, Ant Group's Huabei and Borrowing have completed brand isolation, which belongs to the independent brand of Ant Consumption, and the business of Ant's small loan company has withdrawn from the market in an orderly manner.

In April last year, Chinese Minmin Bank, the Banking and Insurance Regulatory Commission, the Securities Regulatory Commission, the State Administration of Foreign Exchange and other financial management departments jointly conducted regulatory interviews with more than a dozen online platform enterprises engaged in financial business, and Tianxing Digital Was also among them. It is understood that Tianxing Digital Has submitted several versions of the rectification plan to the regulatory authorities.

In recent years, with the change of the regulatory environment of financial technology, the market has become increasingly wait-and-see about how to spin off finance and technology. Not long ago, the "14th Five-Year Development Plan for Financial Standardization" jointly issued by the four departments of the Chinese Bank, the State Administration for Market Regulation, the Banking and Insurance Regulatory Commission, and the Securities Regulatory Commission clearly pointed out that it is necessary to adhere to the strict isolation of financial business and non-financial business, clarify the boundary between scientific and technological services and financial business, and prevent illegal and illegal financial business in the name of science and technology. At present, the partial spin-off of fintech is a trend, which not only caters to regulatory needs, but also makes it easier to comply with regulations, and business boundaries are further clarified, which is conducive to solving problems such as regulatory gaps and regulatory arbitrage.

More than ten financial licenses

In October last year, Xiaomi Digital, a subsidiary of Xiaomi Group, announced that its brand had been upgraded to Tianxing Digital, focusing on the use of digital technology to serve the financial needs of entity enterprises, the transformation and upgrading of financial institutions and the service of individual consumers. At the same time, the "Xiaomi Financial App" was changed to "Tianxing Financial App", the "Xiaomi Wallet App" was fully upgraded to the "Tianxing Financial Wallet App", and the Xiaomi Wallet Quick Payment brand was upgraded to Tianxing Payment.

Up to now, Xiaomi has collected more than ten financial licenses such as consumer finance, small loans, commercial factoring, third-party payment, private equity investment, and insurance. In addition to co-initiating the establishment of Xinnet Bank with New Hope and others, Xiaomi has also obtained a license from The Star Bank, a virtual bank in Hong Kong.

Industry analysts say Xiaomi seems to have been weakening the presence of financial businesses. It can be seen from the financial reports of previous years that its financial business is named in the name of financial technology business, and it is included in the Internet service sector together with Internet advertising and games. But in fact, the expansion of Xiaomi's financial territory has never weakened.

Xiaomi's financial report shows that in 2020, Internet service revenue reached 23.8 billion yuan, an increase of 19.7% year-on-year. As of June 30, 2021, revenue in the Internet services sector, including fintech businesses, reached a record high of RMB7 billion, with revenue up 19.1% year-on-year.

In terms of financial technology business, Xiaomi disclosed that in the second quarter of 2021, the revenue of other value-added services reached RMB1.6 billion, down 10.3% year-on-year, mainly due to its continued strengthening of risk control, active management of the scale of fintech business, and maintenance of stable operation. In the third quarter report of 2021, the financial technology business in Internet services was not mentioned.

In March last year, Xiaomi vice president and CFO Lin Zhiwei spoke about the development of its fintech business on an earnings call. He said that in 2020, the growth of the Internet business is mainly affected by the financial technology business. In the second half of 2020, although the revenue of the fintech business is still on a downward trend year-on-year, as we gradually move to the platform business, the profit margin has gradually improved.

Compared with the previous earnings call, in this year's interim report, Xiaomi executives did not talk about the topic of "fintech" business. For the Internet advertising business, Lin Zhiwei only mentioned that we also face some challenges, such as in the Chinese mainland market we see many regulatory restrictions, including affecting some advertising intensive areas, and then there are new data privacy protection laws. Of course, we will evaluate these effects. But overall, we are more confident in the advertising business, and we believe that the advertising business will continue to grow.

Editor-in-Charge: Meng Junlian Editor-in-Chief: Ran Xuedong