Li Mingshun: We only do a good job in connecting the financial industry

(E-commerce Research Center News) "Good loans will not do simple lending things, nor will we simply do financial things, we only do a good job in the connection of the financial industry and effective distribution." On February 20, Li Mingshun, founder and CEO of Haolun.com, was interviewed by a reporter from China Times in his office, where he talked about the unprecedented opportunities brought by the Internet to the financial industry and the deepening of services to the real economy, especially the integration of China's Internet finance and traditional financial institutions.

Finance can also be simple

China Times: After so many years of product distribution and service of Internet business and credit, what gaps do you think Haolun has filled for the financial industry?

Li Mingshun: We started out as a team doing the Internet, different from the professional financial team, when we first did a good job of lending network, we did not see the opportunities in the financial industry, but from the perspective of consumers to see the needs of the market. We all know that loan officers go to customers every day by calling and other means, which is extremely inefficient. But the Internet industry can help the financial industry solve the problem of efficiency, solve the problem of user matching, that is, can provide me with services when I need it, so we have carried out the distribution of loan products, the connection service of users and loan products.

I think that the financial industry seems to be very complicated, but to some extent, it is actually artificially complicated, it is divided into banks, securities, insurance, trusts, funds, etc., and ordinary people are confused. But for me, a practitioner who has been engaged in the Internet for 16 years, I think finance can also be very simple, especially in the context of Internet +, the core needs of users are nothing more than two points, "money in" and "money out".

Money going in, refers to a few dollars in the bank, dozens of dollars in savings, as much as tens of thousands of dollars in financial management, and then a little more than a million trusts, all call money in.

Money out, that is, to provide loans to customers, to provide a variety of financial services, can help customers get money out, so that customers' financial needs can be met and solved. I think that in the next few years, as the overall financial competition in China becomes more and more fierce, the majority of loan officers should help customers get more money out of the asset side and from the service side.

But whether we put money in or money out, and no matter who issued it, we only care about the needs of users, only provide users with a variety of services, the difference between us and other credit institutions is that we are not p2p, nor is it an Internet financial platform in the traditional sense. We do not provide financial products, do not lend or do wealth management and financial assets, we only provide customers with demand consulting and product connection. Only committed to providing consumers with full financial advisory services, becoming a connection platform between financial institutions and consumers, our expectation is to make the world no difficult to do loans, no complex finance.

China Times: What are the results of this model so far?

Li Mingshun: At present, the good loan network covers more than 350 cities across the country, more than 600,000 credit practitioners, and the annual demand for distributing loans exceeds 500 billion. Benefiting from the existence, service and influence of good loans, many loan officers no longer need to obtain customers through traditional exhibition methods, as long as they can easily obtain customers through mobile Internet, mobile phones, and good loan apps. Just like the current Uber, Didi, the future of the loan officer will also be like the Uber / Didi driver, can not go to the street to wait for customers, but directly through the mobile Internet to get customers, I have always believed that the most important thing for loan officers to do is to give users the best service, and should not waste 90% of their energy on obtaining customers. Our recent survey data also clearly shows that in the entire credit market, more than 30% of the way to obtain customers is done through the Internet, and good loans play a very important role in it.

Share high-quality financial products and needs

China Times: What kind of enterprises do you think are real small and micro enterprises in China at present? What role do they play in China's economic development?

Li Mingshun: The criteria for small and medium-sized enterprises defined by financial institutions are called small enterprises with an annual income of less than 500 million yuan, and enterprises with an annual income of between 500 million and 5 billion yuan are called medium-sized enterprises. But the definition of small and micro enterprises as I understand it is that of enterprises with an annual income of less than 50 million, and enterprises with an annual income of less than 5 million are called small and micro enterprises, and I think that such enterprises should really need loans among China's 60 million small enterprises.

From the perspective of loan amount, more than 80% of the loan demand is less than 100,000 yuan, of which more than 50% is less than 50,000, and the loan is beginning to truly serve small and micro and small and micro enterprises, the State Administration of Taxation clearly stated that small and micro enterprises are the main channels for china to resettle new jobs, and currently solve the employment problem of 150 million people in China, and more than 70% of the new jobs and re-employment are concentrated in small and micro enterprises.

So our good loan network in the future wants to become a service of small and micro enterprises of the main force, our platform registered hundreds of thousands of loan officers, they are like a mobile financial outlets, to serve every customer around them, good loan network will become a million level of financial outlets in the country, this is the Internet finance in our hearts.

China Times: What do you think is the difference between credit and wealth management?

Li Mingshun: Wealth management is a high-access industry in many Western countries, and it requires companies to be able to distinguish customers' investment habits, investment capabilities, etc., but it is very difficult to identify a qualified investor.

At present, there is no law in China that regulates this matter particularly well, so I insist that more private companies should do less financial management and hand over financial management to large companies to complete and some companies with formal management capabilities to do.

Today, not only some traditional finance is doing a big financial management section, many large Internet companies like bat, Jingdong, etc. are also riveting in the wealth management business, I remember that some time ago, some time ago, the media once compared the interest rates of Yu'e Bao, JD.com, Baidu, etc., which far exceeded the same kind of wealth management products of banks. Why? They are using their previously beaten opponents to snatch quality customers from traditional financial institutions. I'm more bullish on their business in this area because technology can make them more efficient in terms of financial management, they have hundreds of millions of companies, and they have enough credit.

Trends in cooperation between old and new financial institutions

China Times: Do you think there will be more financial opportunities in rural finance, county finance and even third-, fourth- and fifth-tier cities in the future?

Li Mingshun: In China, we have found that the financial pursuit of third- and fourth-tier cities and fourth-tier cities will also develop by leaps and bounds, and many third- and fourth-tier cities today do not have financial outlets, but in the future, many problems may be solved through a mobile phone. We know that in China, there are more than 5 banks that can open outlets in townships and towns, and there are more than 5 banks that can open outlets in the county, and there are more than 10,000 outlets in China, and these large banks have not met the financial needs of more than 30,000 townships in China.

In addition, we also see some financial services with very low penetration in China, taking credit cards as an example, we know that in the United States, there are 4 to 5 credit cards per capita, and the credit card issuance rate in the United States has now exceeded 1 billion, while its population is only 250 million. Looking at our country, there are only less than 400 million credit cards, but the Chinese is more than 1.3 billion, that is to say, the average credit card holdings in Chinese are less than 0.3, and it is envisaged that if China reaches two cards per capita in the future, it will issue more than 2 billion credit cards, which is a huge market potential.

These financial services with low penetration rates will inevitably sink to second-tier, third-tier, fourth-tier, and fifth-tier cities, as well as townships and rural areas. If the loan officer cooperates with these financial institutions, it is completely possible to expand the bank's business to counties, townships and rural areas, and become the "mobile outlet" of the bank. The role of good loans in the future is to be able to become the service connector in the middle, so that the people of townships and counties can enjoy the dividends of inclusive finance like the first line of the north, Shanghai, Guangzhou, and Shenzhen.

China Times: With the development of Internet finance, China's financial industry is undergoing earth-shaking changes, do you think this has spawned a trend of cooperation between new and old financial institutions? What work has Good Loan done in cooperation with other financial institutions? For example, cooperation with traditional financial institutions.

Li Mingshun: In recent years, many private banks have been born, which was unimaginable in the past ten or twenty years ago. Now we see that many large banks have begun to consider cooperation with private institutions, at the same time, many private enterprises have also begun to consider whether we can initiate banks ourselves, such as the well-known entrepreneur Mr. Liu Yonghao and Xiaomi jointly opened a hope bank, which is an example of combining the energy of traditional financial enterprises with the energy of the Internet. In the future, perhaps there will be one or two such private banks in every province, and after the emergence of these banks, they will leverage the competitive awareness of traditional financial institutions to a greater extent, and there will be more diverse financial products, which is the best opportunity to participate in them now.

We have been cooperating with Beiyin Consumption, Jinshang Consumer Finance, etc., they are all consumer finance enterprises born in the past two or three years, these enterprises have thousands in China, and 17 of them have obtained relevant consumer finance licenses in the past 3 years, which is to benefit from the development of Internet finance and is also advocated by Internet finance. They have a stronger sense of competition and service than traditional financial institutions, and they also have a better spirit of marketization.

Such companies cooperate with us, and they are willing to share more, and they are willing to cooperate with more loan officers through the good loan platform. They have learned a lot of experience from traditional finance, and many people have come out of traditional financial institutions, so that they have combined traditional finance and the Internet in a real sense. (Source: China Times)

This article is from the China E-commerce Research Center, the department of entrepreneurs authorized to publish, slightly edited and modified, the copyright belongs to the author, the content only represents the author's independent views. [ Download the Entrepreneur app to read about China's 7,000 most profitable businesses ]