Consumer finance companies refer to non-bank financial institutions that do not absorb public deposits and provide loans for consumption purposes for individual residents in China on the principle of small amount and dispersion. Including personal durable consumer goods loans and general personal consumption loans. Because the loans issued by consumer finance companies are unsecured and unsecured, and the risks are relatively high, the CBRC has formulated strict supervision standards. The business of consumer finance companies mainly includes personal durable consumer goods loans and general-purpose personal consumption loans.

The future development of consumer finance;

1. The competitive advantage is not obvious.

At present (by the end of 2009), more than 80% of China's consumer credit market is mortgage and car loan, and the remaining 20% such as education, tourism and wedding are also provided by general commercial banks. Many credit cards issued by banks have the function of installment payment. Although the balance of consumer loans issued by consumer finance companies to individuals should not exceed 5 times of the borrower's monthly income, this upper limit is higher than that of ordinary credit cards and may not have much competitive advantage.

2. Prisoner's Dilemma under the Incomplete Credit Information System.

How easy is it for consumer finance companies to reach a certain trust relationship with consumers when the credit information system of the recommending country is incomplete? Either investigating a person's credit history can't be done quickly, or it can be done quickly, but it may face the credit risk of customers. This is obviously a prisoner's dilemma. Without speed and guarantee, it is equivalent to losing its unique competitiveness.

3. The source of funds is difficult.

Consumer finance companies cannot absorb deposits. The "Measures" stipulate that in addition to its own capital, it can raise funds through domestic interbank borrowing, borrowing from domestic financial institutions and issuing financial bonds upon approval. Although the "Measures" stipulate that the total assets of financial institutions as shareholders must reach more than 80 billion yuan, it still cannot eliminate the dilemma of consumer finance companies' own risks and financing difficulties.

4. The success or failure of the bank's chicken rib business is unpredictable.

However, unlike the RMB trade settlement pilot, consumer finance is not "profitable" as soon as the floodgate is opened. An obvious paradox is that in the future, the businesses of consumer finance companies will be in the fields of small consumer loans such as wedding, tourism and education, and these businesses actually belong to the personal loan department of commercial banks for a long time, but they have not been fully paid attention to by the personal loan department. At present, the establishment of consumer finance companies is an abandoned field.