Rebirth 2010: I taught Mr. Lei how to make a mobile phone

Chapter 714 Chen Mo's Report
Feedback Report on Business Risks and Regulatory Suggestions of Internet Financial Lending Platforms

Chen Mo flipped through the report page by page, nodding from time to time, and circling and annotating key points with a red pen from time to time.

He frowned slightly, and the tip of his pen rustled on the paper. He occasionally stopped to think for a moment, then continued to revise.

For the whole day, apart from dealing with daily approvals and signatures, he spent almost all his time on this report. The sky outside the window gradually darkened, and the afterglow of the setting sun shone through the glass onto the table, reflecting his focused silhouette.

Finally, he put down his pen, breathed a sigh of relief, and looked at the final draft with satisfaction.

Since we want to "speed up" Lao Ma, we must first throw some bait to make him bite the hook willingly.

The "micro-loan" that Zhang Xiaolong is in charge of is like a trap on the playground, with the same green grass as the surrounding area on the surface, but there is a hidden danger underneath. What Chen Mo has to do is to show Lao Ma a "dark road" and make him think that this road is unobstructed.

In fact, Chen Mo does not advocate or is very disgusted with this consumer loan model.

For those who have certain social experience and are in urgent need of short-term cash flow, it may be able to solve the urgent problem.

However, if it is over-promoted, young people who lack self-control, especially college students who have a living expense of around 2,000 yuan a month, may use consumer loans to buy iPhones, bags and shoes worth thousands or even tens of thousands of yuan.

It will be like gambling, gradually distorting their immature consumption concepts and even destroying their future.

Chen Mo deliberately added a "combined edition" content at the end of the report, which not only sorted out and reviewed past policies, but also predicted future risks.

The rest can only be left to time and luck.

That's all he can do...

This time the channel he chose was the King of Hearts.

Feedback Report on Internet Financial Lending Platforms, Business Risks and Regulatory Suggestions

".A certain group relies on its financial platform ecosystem to carry out consumer credit business through products such as "Huabei" and "Jiebei", and uses asset securitization (ABS) to achieve rapid expansion.

Although its business is named "Internet technology innovation", it actually possesses the characteristics of financial systemic risks such as high leverage, maturity mismatch, and risk contagion, and requires high vigilance of regulators.

The main risk points are as follows.
Business model risks: It adopts the "joint loan + ABS cycle" model, leveraging a trillion-level credit scale with less than 2% of capital, and the leverage ratio exceeds 100 times (far exceeding the 10-fold regulatory red line of commercial banks).

This model circumvents traditional bank capital adequacy requirements and can easily trigger a chain liquidity crisis once the quality of underlying assets deteriorates.

User structure risk: The product induces young people to over-indebtedness through gamification design. According to public data, 30% of its users are under 50 years old, and more than 25% of them are under 70 years old. There is an obvious risk of sinking customer base. (See attachment for details)

Systemic risk hazards: The platform is deeply connected to various financial institutions such as banks, funds, and insurance companies. If a risk event occurs, it may trigger market panic, and the public and the treasury may ultimately pay the bill, causing major social impacts and misleading the country and the people.

We have learned from the US subprime mortgage crisis. The collapse of Lehman Brothers in 2008 was due to the deterioration of the quality of the underlying assets of ABS. Although the model of this platform is decentralized, it is larger in scale.

There has been a wave of P2P financial platform collapses since the second half of last year, with 90% of the platforms closing down due to mismatches in funding pools and maturities, leaving the city in a mess. Although this platform's model is standardized, its leverage risk is similar and even higher.

Finally, this business innovation model deserves recognition, but the current regulatory framework has seriously lagged behind its risk accumulation. Relevant departments need to pay close attention to it and nip it in the bud.

We hereby recommend that it be immediately included in the regulatory list of systemically important financial institutions to avoid repeating the P2P mistake of “first letting it go and then rectifying it”, causing irreparable losses to people’s property.

annex:

ABS issuance scale and leverage calculation table of a certain group (2013~2015)

Sampling data on the age and debt structure of business users on this platform (for reference)
International regulatory comparison cases (such as PayPal regulatory model)

Chen Mo January 2016, 1

"Heh~ It seems that Chen Mo's last words have a hidden meaning. He is obviously dissatisfied with the fact that the previous P2P warning was not adopted, and blames us for not paying attention."

"In fact, this guy's vision is still narrow. We still have to look at the big picture. P2P, as a representative of 'inclusive finance', fills the gap in the loan needs of small and micro enterprises and individuals that traditional banks fail to cover. In fact, our original intention was good at the beginning. The development has been very good since 07. Who knew it would become like this now?"

"Any financial innovation must go through the process of 'observation-regulation-improvement'. The lessons learned from this P2P have accumulated valuable regulatory experience for us."

"So, regarding the feedback submitted by Chen Mo this time, should we call the person in charge of the other party over to discuss it?"

"No hurry. It's not a good idea to alert the snakes. What if all the snakes run away? Wait a minute. I want to see how many ants on this boat want to climb the tree. Then I can catch them all at once."

“Then WeChat suddenly applied for lending qualifications a few days ago? Is it going to be blocked?”

"Not only should we not get stuck, but we should also handle special cases in a special way. Since someone wants to 'go to the tiger mountain even though he knows there is a tiger', we might as well help him do so."

"In fact, Chen Mo's suggestions and advice are quite forward-looking, whether it is the previous Internet+ concept, the P2P warning, and this time."

"I understand what you mean. You're afraid of discouraging this guy, right? When was the draft for soliciting opinions on fintech regulation originally scheduled to be released?"

"The plan is after the Spring Festival." "Let's move it forward to next week."

"Okay, I'll arrange it when I get there."

After reporting the incident, Chen Mo only received two words in reply: "Received."

And then nothing happened. Could it be that it would fall into oblivion again like last time?
If the voice is not taken seriously, it means that the strength is not strong enough, which in turn arouses Chen Mo's desire to win.

Since the voice is not loud enough, let the other side grow into a behemoth that no one can ignore.

Just when he thought that this time would end in vain, a turning point came quietly.

On January 1, the China Banking Regulatory Commission suddenly issued the "Interim Measures for the Management of Business Activities of Online Lending Information Intermediaries (Draft for Comments)".

On January 1, in order to standardize the business activities of online lending information intermediaries, promote the healthy development of the online lending industry, and better meet the investment and financing needs of small and micro enterprises and individuals.

The China Banking Regulatory Commission, together with various departments, has studied and drafted the "Interim Measures for the Management of Business Activities of Online Lending Information Intermediaries (Draft for Comments)" and solicited opinions from relevant departments. We are now soliciting public opinions. The deadline for feedback is February 2016, 2.

This first P2P regulatory document in the country was like a thunderclap in the financial technology field, causing thousands of P2P platforms to jump into chaos.

Late that night, the Ali Building was still brightly lit.

Outside the floor-to-ceiling windows of the top-floor conference room, the night view of Qiantang River is illuminated by neon lights, while the atmosphere inside is as heavy as iron.

Ma called together the core members of Ant Financial to interpret the documents overnight, and the whiteboard in the conference room was covered with densely packed analysis points.

After some discussion, everyone agreed that these twelve bans were like the gold medals that the army brought back home, which caused a sharp drop in the number of nearly 5000 P2P platforms in the country. In the end, only dozens of them survived and entered the era of standardized development, which helped investors to identify platforms for reasonable investment.

“.For us, tightening regulations is a good thing after all the bad news has been eliminated.

Those unconventional P2P platforms have died out, and users have fewer options. With nowhere to go, the money will naturally flow into our Alipay's "Huabei" and "Jiebei", so it is a good thing. It is conceivable that our users will increase greatly in the future.
After this, we need to agree on a statement that what we are doing is not financial leverage, but a healthier model of technology-enabled finance."

He turned around and wrote the words "TechFin" on the whiteboard. "This is our new strategy. Technology-driven finance will run through Ant's development."

Peng Lei interjected at the right time, "I received news these two days that WeChat seems to be planning a small loan business in Internet finance, which seems to be called Weidai."

"Micro loans?" Old Ma chuckled, as if he had heard an outdated joke, and could not help but snorted, "Now that Chen Mo sees the policy in place, he wants to engage in Internet finance. Just like Meituan is the only one in the market, and you set up Ele.me to grab the group buying business, can you see how it is now?
They don't consider the time when they want to do something. We have 4G, but they are still stuck with 2G.

They are really doing big things but are afraid of losing themselves. They have no sense of adventure at all. They are not worth the effort. We don’t need to care about them. Their financial qualifications and licenses are enough to make them suffer. Let’s just do our own thing.”

"clear."

"Next, I will announce the personnel adjustment. Peng Lei, the former CEO of Ant Financial, has been promoted to the chairman of Ant Financial, and the CEO position will be taken over by Jing Xiandong.

Our goal this year is to complete the B round of financing, continue to promote the TechFin strategy and launch a global layout, and vigorously promote 'Jiebei' and 'Huabei' to make our products popular. "

Peng Lei and Jing Xiandong looked at each other with fiery eyes and nodded in agreement. They had no doubt about the vision and
“.Remember, we are a technology company first and a financial company second.

Short-term pain is inevitable and we need to be prepared in advance, but once the shoe drops, the road ahead will be smooth.

You still need to work harder!"

"Yes!"

"The meeting is dismissed!"

After the meeting, Ma rubbed his slightly swollen temples. Compared with the gradually clear future of Ant Financial, the challenges faced by Taobao are even more daunting.

JD.com's logistics system, which cost tens of billions of dollars to build, is indeed tricky. SF Express's transportation capacity and Hummingbird's terminal delivery make the "speed" dimension a weak point of Taobao.

This kind of powerful and abnormal logistics capability is totally unmatched by Cainiao Network and SF Express.

He has read the data report and found that the logistics speed between Taobao and JD.com is 2 days slower on average, so from the perspective of "speed", Taobao is not competitive.

In fact, JD.com's slogan of "more, faster, better, cheaper" has already revealed the essence of e-commerce. Since it is difficult to surpass "fast", it must focus on "more, better, cheaper".

So next, whether it is Taobao, Tmall or Ant Financial, they all have a long and tough battle to fight.

Since we are going to fight a war, we need to do pre-war mobilization so that everyone can fight with a more full attitude.

And that's exactly what he's good at.

At 996 a.m., an internal letter titled "Working is a blessing" was quietly sent to the mailboxes of all Alibaba employees.
(End of this chapter)