Interview with economist Yi Xianrong: Do two things well, flying loans will become the next "Big Mac"

Why can an iterative launch of a product attract many economists?

On the afternoon of August 22, Feilun Fintech released the 3.0 version of Feilun at the Beijing National Convention Center. This mobile APP loan that achieves risk control through big data has helped banks and other financial institutions achieve full-line lending, and is the only Chinese financial case selected for the Wharton School in the United States.

The data shows that in the past five months, the volume of flying loan business increased by 30 times year-on-year, the number of users exceeded 3 million, and the total amount of credit has exceeded 10 billion.

At the press conference on the same day, Wharton Professor Amit and domestic financial celebrities Yi Xianrong, Ye Tan and Wu Xiaobo jointly attended the press conference to discuss the road of financial technology and innovation.

Professor Amit explained in detail the teaching effect of flying loans as a financial case at Wharton. Yi Xianrong, on the other hand, aims at the BAT giant, believing that in the era of financial innovation, in the era of mobile Internet, in the future, financial technology companies will appear and are expected to replace them as a new round of giant enterprises.

What is the secret for fintech companies like Flying Loan to grow into the new "Big Mac"? After the press conference, Professor Yi Xianrong analyzed in an exclusive interview after the meeting that on the one hand, it is to solve the availability of credit on the basis of mobile Internet technology, on the other hand, it is also necessary to gradually reduce the cost of credit products through big data and other technical means.

The "4.0 Mindset" of FinTech Innovation

In fact, attending the press conference of Feilun is not the first time that Professor Yi Xianrong has paid attention to financial technology innovation.

"Why did I run to Qingdao this year, why did I set up an Internet Finance Research Institute after arriving in Qingdao, the core reason is that in the era of the Internet, that is, after the emergence of smart phones, our future economic development and social development will undergo earth-shaking changes." Internet finance will definitely have a subversive impact on traditional finance through a new way. Since there will be a disruptive impact, it is necessary to study this trend, to study this product, to let the public know what will happen in the future. Yi Xianrong explained his recent research direction in this way.

In an exclusive interview, Yi Xianrong distinguished financial innovation based on the traditional Internet from financial technology innovation based on mobile Internet such as Feilun.

In his view, where is the core of our past doing business and production? It lies in the use of existing technology to improve the technical level of the enterprise, so as to carry out large-scale production and enhance product profits. At that time, consumers wanted cheap and high-quality products, so our production put all the attention on the product itself. And it is generally believed that if an enterprise can produce high-quality and inexpensive products to supply the market, the more products, the larger the market, the larger the scale, we think that the enterprise is efficient.

"But this is the era before the emergence of smart phones pioneered by Jobs, Yi Xianrong analyzed that after the emergence of smart phones and mobile Internet, there was an 'Industry 3.0' way of thinking." "Specifically, the core problem of doing business is not just to produce a good product. Instead, it is necessary to stand in the perspective of providing value to customers, like Flying Loan, to create a product that can provide endless value to consumers. ”

In an exclusive interview, Yi Xianrong specifically mentioned the concept of "customization". The way of thinking of Industry 4.0 is the era of intelligent Internet with mobile Internet as the main body. The core is to rely on intelligent technology instead of the human brain for complex process management, huge data calculation and decision-making process optimization, the ultimate purpose is to provide customized products and services for rich and diverse individuals, from the user value side to find potential needs, to provide users with fully personalized customized products and services.

"The core difference between the 'Industry 3.0 era' and the 'Industry 4.0 era' is here," Yi Xianrong concluded.

"Customization" and "Dynamics" of Flying Loans

Coincidentally, at the press conference on the same day, Meng Qingfeng, chief strategy officer of Feilun Fintech, also highlighted the "customized" and "dynamic" characteristics of Feilun when explaining the mobile Internet and technology financial attributes of Feilun.

Many loan products on the market are now a standardized product. For example, when applying, the withdrawal amount and repayment date are fixed, why is it fixed? As a loan product design, it is also more complicated for banks and other financial institutions, involving the accounting and liquidation behind it. Designing standardized products will save a lot of money for financial institutions, but it will cause too many pain points for consumers.

Since the development of this APP, it is based on the concept of "customization", which allows customers to customize their own loans, and can withdraw cash, repay operations and set terms according to their own capital situation. The amount of withdrawal can be in accordance with their own requirements, the term is very free and flexible, the setting and change of the repayment date is equally flexible, and the application is completely based on their own wishes, so the design concept of this loan allows consumers to make their own loan plan according to their own cash flow situation. Meng Qingfeng introduced.

In addition, flying loans are "dynamic". In fact, anyone's personal credit situation is constantly changing at different stages. It is possible that the credit profile will get better and better, or it may be that the credit profile is declining. As a risk control, the amount of loan that everyone can apply for is actually based on their credit status. Taking the flying loan product as an example, this amount does not mean how much the flying loan gives the user, in fact, the flying loan is based on the user's actual credit status to determine the credit line, so the credit line is determined by the user himself. With the dynamic change of personal credit, the amount will also be dynamically adjusted. The better the credit status, the higher the limit, and the corresponding fees will fall. If the credit status deteriorates, the amount will be lowered and the corresponding fee will rise. "It is based on this that the product can truly maximize the interests of customers."

Fintech is expected to produce new "Big Macs"

It is precisely because financial innovation based on the mobile Internet can create "endless" value for users, Yi Xianrong believes that in this field in the future, Feilun is expected to become a new giant enterprise that surpasses BAT.

In modern society, whether it is your daily economic life or the economic activities of enterprises, you are facing a series of capital constraints - the need for capital turnover anytime and anywhere, the sudden interruption of capital flow, and so on.

We need to have such a product, which can solve the financial problems you may face anytime and anywhere, and may involve economic, life, development and so on. Feilun mobile APP loan is the use of the Internet's latest "black technology", such as device fingerprint technology, face recognition technology, data security encryption technology, etc., simply and conveniently solve the user's many pain points needs. In Yi Xianrong's view, China's financial market has developed for many years, small and medium-sized enterprises are still difficult to borrow, while vulnerable people, especially farmers, are always difficult to borrow money. Just because they don't have good collateral, traditional financial institutions don't have a corresponding risk assessment system, and there is no product like mobile APP loans. The emergence of flying loans is bound to change the consumption pattern of Chinese residents' credit. Behind this model, the convenience of users, the key is to achieve a rapid risk assessment of each consumer or lender through the use of modern high-tech means. If the future of flying loans can rise to the level of realizing the level of national loans, in the face of any ordinary people to do the risk assessment system, it can be said that our flying loans will have an endless market, the future will also have a huge impact on the development of the entire financial market and financial system.

In addition, Professor Yi Xianrong also highlighted the financing cost in an exclusive interview.

Financial issues always involve credit risk pricing. "Since we can use a series of modern technical means to control risks, we also need to gradually reduce the cost of credit products."

"Now it seems that Alibaba, Tencent and Baidu are very powerful, but in the era of smart phones, in the future, financial technology companies will appear and replace them as new giant enterprises in the future," Yi Xianrong concluded, "So, I hope that in the future, on the one hand, feilun products can become household names and channels for people to obtain financing at any time." On the other hand, through the use of modern technology and Internet big data, the cost of credit is gradually reduced, and the market is getting bigger and bigger. It is hoped that in such an infinitely large market, it will not only make Feilun a new giant financial enterprise in China in the future, but also make it an important tool to promote the future development of China's economy and help people improve their lives. ”