The P2P industry has been "exploding" constantly, and in the last three months alone, more than 250 platforms have had problems of varying degrees of severity, including even platforms that were once in normal operation and had a cumulative turnover of more than tens of billions of dollars. Although the P2P industry in the rapid expansion at the same time, the platform survival rate has not been high, but a short period of time such a serious situation in the development of the P2P industry in the past 10 years is still rare, causing a high degree of concern from all walks of life, but also led to a number of social issues.

The recent wave of mines, so that public opinion from the past on the P2P like a swarm of enthusiastic, quickly changed to one side of the blame and denial, the most extreme comments and even think that 99% of the P2P platforms will be in this wave of mines in the demise of the wave. It can be said that the current P2P since the birth of the industry's most difficult time.

However, from the recent introduction of a series of policy measures, regulation is not "one-size-fits-all", but tends to be mature and reasonable. Now that the regulation has been first, the public and the market correctly view P2P, as well as the P2P business compliance is particularly important.

First, P2P landed in China's original intention

P2P is based on the Internet platform, the use of artificial intelligence, big data, cloud computing and other cutting-edge technology development of low-cost new lending model. As an imported product, P2P was officially introduced into China with the establishment of P2P in 2007, and showed explosive growth from 2012 to 2015.P2P supports the weak links in the economy, and to a certain extent makes up for the short board of the financial support of the real economy, promotes the development of inclusive finance, and is also conducive to the improvement of China's financial system. This is the original intention of China to support and encourage the development of the P2P industry.

Due to the underdeveloped credit system in China, it is often difficult to meet the requirements of traditional finance for small and micro-enterprise business loans and consumer loans for low- and middle-income people. P2P significantly reduces the information collection cost of both borrowers and lenders, surpasses the traditional social acquaintance lending model, breaks through the limitations of traditional financial institutions unfavorable to small and micro borrowing, partially meets the needs of personal consumption and small and micro enterprise loans, and at the same time, also broadens the channels of public finance. As of the end of June this year, the balance of P2P loans has been close to the scale of 1.32 trillion yuan.

The results of financial inclusion promoted by the P2P industry are also evident***.

First, to meet the financing needs of the real economy, especially small and micro enterprises. According to the statistics of Zero One Finance, P2P net lending from its birth in 2007 to July 2018, has cumulatively satisfied the capital demand of about 25 million borrowers and about 7.2 trillion yuan (excluding offline financial platforms); after deducting the net markers, recognizable fake markers and self-financing markers, the cumulative amount of borrowing is in the range of 5 trillion - 6 trillion yuan. At the same time, P2P lending cumulative for more than 40 million investors (according to the various platform investors cumulative, the data contains double-counting investors) to earn investment income of more than 400 billion yuan (excluding pending interest, activity incentives, rebate income).

It is worth mentioning that the P2P industry provides a large amount of short-term financing for small and micro enterprises. Short-term loans obtained by enterprises from P2P platforms have shown exponential growth in the past few years, from about 6.38 billion yuan and 45.60 billion yuan in 2012 and 2013 to exceeding the 100 billion yuan mark for the first time in 2014, reaching 123.32 billion yuan. Subsequently, it exploded to $400 billion in 2015 and doubled to $800 billion in 2016.

Secondly, it promotes the development of China's consumer finance market and promotes domestic demand. The proportion of consumer finance loans in P2P loans rose from 1.03% in 2013 to 5.07% in 2016, and the scale increased dramatically from 1.1 billion yuan to 99.1 billion yuan, an increase of 90 times. Affected by the regulation of cash loans, a large number of P2P platforms have transformed into the field of consumer credit. It is estimated that the scale of consumer finance loans on P2P platforms was around 400 billion yuan in 2017, more than four times that of 2016, meeting the consumption needs of more than 7 million people.

Second, the advantage of P2P lies in the information intermediary

The essence of finance is the financing of funds, in which financial institutions play an intermediary bridge role. This intermediary role can be divided into two categories: one is the information intermediary, the second is the credit intermediary. Information intermediation is to provide information for the supply and demand of funds, to solve the problem of information asymmetry. The role of financial information intermediary is relatively easy to understand, we can see, there is not much controversy, while the role of financial credit intermediary may not have a deep understanding of the role of many people are not even fully aware of, but this is precisely the core of modern finance. The so-called credit intermediary is a financial intermediary in the process of capital financing, with their own credit as a guarantee, to ensure the safety of the principal and interest of the contributor, to assume the responsibility of controlling the risk of the loan.

In fact, P2P was born on the basis of technological empowerment, playing the role of information intermediary. As early as June 2016, I have written an article that P2P should be mainly located in the play "information intermediary" function, because this is precisely the advantage of P2P online lending platform. The use of big data and network platforms, P2P helps the supply and demand sides of the funds directly docking, reduce intermediate links, improve efficiency, reduce costs, thus making up for the shortcomings of traditional finance. Traditional finance and Internet finance are not mutually exclusive, but the relationship between heritage and innovation.

However, in our financial market, "rigid cash" is the trend, and P2P platforms often have to be rigid in order to attract funds, essentially becoming a credit intermediary. The P2P is a great way to get the most out of your life, and it's a great way to get the most out of your life. First, the risk information is incomplete. Big data only covers online data, offline data access to traditional means, and P2P lenders are generally small and micro-enterprises or individuals, for this part of the group's credit system is far from perfect, business conditions, credit risk and other key information is difficult to obtain. Second, the risk control means is not as good as traditional finance. At present, most of the P2P risk control relies on property collateral, risk investigation and other means used by traditional financial means are similar, and the degree of risk control is far worse than traditional finance. Some platforms even outsource risk investigation. In addition, the risk compensation ability of P2P platforms is also very insufficient.

Traditional finance not only has both information intermediary and credit intermediary functions from the beginning, but its credit intermediary function is more important. Therefore, modern banks have developed a series of risk management capabilities, including risk identification, risk assessment and pricing, risk control and risk compensation and other specific measures, but also require borrowers to meet certain collateral, guarantees and other loan conditions; lending and post-loan monitoring measures; in the event of bad loans, there are provisions, capital compensation and other risk compensation means. It can be said that the focus of the modern bank lies in its credit intermediary function, the results of the bank's operation is also mainly reflected in the credit intermediary.

Confusing information intermediaries and credit intermediaries makes P2P platforms a weak link in financial risk management. However, with the new regulations on capital management, the P2P industry may usher in its return to the information intermediary development opportunity. Because of the breaking of rigid payment gradually make investors accustomed to the investment without redemption, but also promote the investors' returns and risk tolerance ability to match. The "match" and "guarantee" will emphasize the importance of the function of information intermediary, and guide the P2P to return to the origin of the information intermediary.

Three, rational view, calm response to P2P "mine wave"

According to the third-party network credit data platform network credit eye statistics, since 2018, January and July, two consecutive P2P platform payment crisis, successively 241 and 252 platforms shut down or appeared. 252 platforms went out of business or had other payment problems. How to correctly view this phenomenon?

The current P2P platform is indeed a lot of problems, but should not be "demonized". In addition to the problems of the industry itself, P2P frequent "mine" also has the objective reasons of the market. We know that the risk is often in the weakest link outbreak. Recent market capital tensions in some ways can be called the pressure on the P2P industry "the last straw". Panic triggered by the run, and even borrowing enterprises maliciously escape debt, exacerbating the risk of contagion and proliferation. According to net credit home statistics, July P2P industry turnover of 144.754 billion yuan, down 17.6%, down 42.9%. There was even an outflow of 73.088 billion yuan, compared with an inflow of 44.743 billion yuan in the same period last year. In fact, no financial sector can withstand a large-scale run on the bank and flight from debt.

In the face of the P2P industry's trust crisis, a strict distinction should be made between whether the problematic platforms belong to the illegal platforms with real but irregular business, or the illegal platforms without real business or engaged in illegal fund-raising. On the one hand, some of the problematic platforms still have live financial management business, continue to carry out term mismatch, capital pooling operations, and engage in credit intermediary services, which are of a non-compliant nature, and are businesses in the gray zone before the introduction of the new regulations on capital management, as well as a common phenomenon in the industry, but are no longer suitable for the current financial regulatory environment. For such irregularities with real business platforms should be strengthened to guide the exit or transformation in a reasonable and orderly manner. On the other hand, some of the problematic platforms involve fictitious borrowing targets, self-financing and other behaviors, which are of the nature of telecommunications fraud and illegal fund-raising, seriously endangering the safety of public property. For this kind of false or suspected fraud platform illegal behavior should be vigorously combat, resolutely shut down and recovery of related assets.

From a series of policies and measures that have been released, it can be seen that the regulator's attitude towards P2P has been relatively clear, that is, the implementation of the P2P industry "benign guidance" rather than "one-size-fits-all shutdown. Financial Rectification Office, P2P Special Rectification Working Group Office put forward "allow compliant institutions to continue to operate", "the conditions are ripe for institutions to apply for the record as required" and other nine clear requirements; August 8, the National Internet Financial Rectification Office issued the "report on the P2P platform borrowers to evade debt information notice", requiring each P2P platform as soon as possible to report the information of the old scoundrels; August 12, the regulator put forward ten initiatives to mitigate the risk of network lending; August 13, the "online lending compliance checklist" 108 released, which means that the nationwide P2P compliance inspection officially kicked off.

Recent initiatives to prevent and resolve risks also show the importance of regulators to market stability. 16 August, the China Banking and Insurance Regulatory Commission (CBIRC) convened a meeting of the four major asset management companies to assist in resolving the risk of the P2P explosion. 22 August, the China Internet Finance Association (CIFA) launched the self-regulatory inspection of the P2P network lending member organizations to prevent the risk of contagion and proliferation of the urgent need to prevent the spread of the risk.

At the same time, it is very important to restore the confidence of the market. the delay in the completion of the P2P platform for the record, to a certain extent, affecting the public confidence in the industry. Therefore, on the one hand, you can speed up the inspection of P2P platforms and allow compliant platforms to be filed in accordance with the 108 provisions in the "Checklist for Compliance Issues in Online Lending". On the other hand, through the industry associations and platforms to establish a more complete industry self-regulatory mechanism, support the continued development of compliant leading enterprises, to achieve the reasonable integration, reorganization and elimination of platforms in the process of industry stock consolidation.

At the same time that external regulation is perfected, P2P platforms themselves should also strengthen self-discipline and internal regulation. The wave of explosions accelerated the P2P market clearance process, the number of platforms is expected to continue to further reduce the number of industry concentration will be further increased, but the P2P industry will not die out, those who comply with the operation of the information intermediary-based P2P platforms in the process of industry consolidation to do solid, strong, large, and is expected to become the mainstay of the industry.P2P platforms should also be to the traditional financial institutions to learn, to enhance their own Risk management ability, in the use of good big data and other technological financial means at the same time, to ensure adequate capitalization, and the implementation of effective risk compensation measures.

(The author is the former director of the Department of Survey and Statistics of the People's Bank of China and a counselor of the Shanghai Municipal People's Government.