First-tier cities become P2P Red Sea. Last year, many platforms turned their attention to third-and fourth-tier cities with low financial awareness and strong financing demand. P2P platform in Shenzhen is one of them. The path for everyone to gather wealth is the "joining mode", which is the core of the P2P3.0 mode proposed by everyone. It gathers the institutional resources of high-quality small loan companies and guarantee companies in third-and fourth-tier cities and provides them with funds, brands, risk control, product customization, law and professional training. Franchisees provide local high-quality projects for everyone to gather wealth and conduct the first risk control survey.
Compared with the direct mode, this mode has the advantage of low operating cost. In addition, the strong local network resources of franchisees are also the reasons why everyone gathers money and values franchisees. It is easier for 3354 franchisees to clearly understand the background of borrowers. 18 On the afternoon of April, Renren Jucai held the first investment promotion meeting of 20 15 with the theme of "Small Power" in Sannuo Wisdom Building, Shenzhen. After the meeting, Huang Fang, the founding partner of Renren Jucai, accepted an exclusive interview with 2 1CBR, explained their joining mode in detail, and revealed their thoughts on P2P industry in the second half of the year. The following is an interview record:
2 1CBR: Everyone gathers wealth and puts forward the P2P3.0 model. How is it different from 1.0 and 2.0?
Huang Fang: The whole P2P lending chain is divided into three links, one is to find borrowers, the other is to do risk control, and the third is to match funds. The last link is completed online, and the main difference lies in the first two links. If one and two are completed online, this is the 1.0 mode, which is adopted in the United States. Limited by the domestic environment, it is unrealistic for China to copy this model. Move the first link offline, that is, 2.0 mode, and open stores in every place to find borrowers. However, the risk control link should be centrally approved by the headquarters, and then the online matching funds should be concentrated. The disadvantage of this model is that the management radius is long. Each store has employees, city managers, regional managers, and then the head of the headquarters, which requires layer-by-layer permission setting. Too long radius can easily lead to moral hazard, overdue and bad debt rate is high.
Later, we adopted the 3.0 model, cooperated with local small loan companies and guarantee companies, and handed over the first two links to them, and everyone pooled their money to take charge of the last link. Of course, we will strengthen the control of intermediate risk control, and after they have completed the first risk control, we will also add a final audit of the headquarters.
2 1CBR: How long have you been practicing the joining mode? How many franchisees are there at present?
Huang Fang: It has been more than a year since we started practicing the franchise model last year. At present, there are about fifty or sixty franchisees.
2 1CBR: How to collect the initial fee and deposit? Are there any other charges?
Huang Fang: We charge franchisees an initial fee of 200,000 yuan, which is a one-time payment. We will offer different discounts to high-quality institutions. All deposits are charged at 10% of the loan balance, and each payment, such as loan 100000, requires100000 deposit.
2 1CBR: franchisees are everywhere. How to make everyone rich and achieve effective management?
Huang Fang: We have many ways to control it. First of all, the aforementioned 10% deposit is used for the bottom. Secondly, in addition to franchisees, the actual controller will also provide us with the full guarantee of joint liability. If the borrower has overdue bad debts, the franchisee must advance them to everyone within three days, and then recover from the borrower. Another key point is that our funds are not directly given to franchisees, but directly to borrowers. When we pay back the money, we also deduct it directly from their cards. After we get the intermediate interest difference, we will return the profits that the franchisee should have. Franchisees don't touch money.
We set up a periodic assessment mechanism for franchisees, and make a dynamic analysis of franchisees every month according to the overdue repayment we see from the withholding data. For example, the withholding mode, this franchisee has 100 borrowers. What is the withholding status of these borrowers? Did the deduction succeed that day? We have an analysis of the success rate of withholding, but there is no successful part of withholding. We will look at the indicators of franchisees, such as timely prepayment rate and margin adequacy ratio. Under this assessment mechanism, if the performance is not good this month, it will affect the conditions for franchisees to cooperate with us next month. For franchisees who have always maintained excellent performance, we will consider implementing incentives such as reducing the margin and returning the franchise fee.
Generally speaking, on the franchisee's side, before entering, we will conduct due diligence to understand their qualifications, business conditions, data authenticity, credit information and so on. After entering, we will conduct regular or irregular audits to find out whether they have violated the rules and help them improve their problems. As for the project, we will input the daily project into the ERP system, where we will conduct the final review. The Commissioner will check with the borrower by telephone and pay a telephone call back after the loan is issued. If the project information is insufficient, Renren Accounting will ask the franchisee to supplement it.
2 1CBR: Can you further introduce the punishment system and exit mechanism of the joining mode?
Huang Fang: If the regulations are violated, the franchisee will face penalties such as fines and non-refundable deposits. In the worst case, they will cancel their cooperation, be fined and never cooperate again. After franchisees come in, they will be graded according to the size of each person, the time of establishment and other factors, and there will be differences in terms of authority, products and credit scale. As for the exit mechanism, each franchisee has to face a four-month running-in probation period. During this period, if the concepts of both parties deviate and the product design fails to meet our initial expectations, everyone has the right to cancel the cooperation between the two parties at any time, and the franchisee will buy back the creditor's rights of the implemented project, thus realizing the withdrawal.
2 1CBR: How many franchisees do you want to add this year?
Huang Fang: I hope to increase it to 100.
2 1CBR: Will it continue to develop into more grassroots cities in the future?
Huang Fang: The joining mode will be a long-term strategy. We are likely to go to more grassroots units, and we may cooperate with real township financial institutions such as the Postal Savings Bank to serve more people in agriculture, rural areas and farmers.
2 1CBR: then how do you gather money to lay out the first-and second-tier markets?
Huang Fang: In first-and second-tier cities, we will choose stronger institutions to cooperate instead of joining, and those institutions themselves have strong credit endorsements. At the same time, we will develop a small-scale direct sales model and may open a branch office.
Form.
2 1CBR: Everyone gathers wealth and advocates that P2P should adhere to small-scale decentralization. How do you interpret the essential logic of P2P?
2 1CBR: what kind of thinking do you think is suitable for industry supervision?
Huang Fang: I think it is more appropriate for the regulatory authorities to supervise the registered capital, qualifications, experience, fund custody, information disclosure and risk provision of senior managers, and not to interfere with the daily production and operation of P2P in particular. Let the inferior institutions slowly withdraw smoothly, rather than across the board, which is more grounded. At the same time, allowing new institutions to reach the threshold and then enter can effectively purify the industry environment.
2 1CBR: What changes do you expect in the industry format this year? Where is the key point of competition?
Huang Fang: There will be a reshuffle this year and next. This year, 50% of the institutions will be eliminated, leaving only the platform that has done well in the past. The key point of competition still lies in risk control. In fact, the capital side has begun to take shape, and whether the foundation behind the scale is solid or not is very important.
Related Q&A: Related Q&A: Can P2P platform join? Hello.
As you mentioned, with the development of social economy, personal investment and financial insurance, financial consumption and personal consumption credit have entered thousands of households! However, in some remote areas, financial credit loans and personal consumption loans are still underdeveloped, and the market in this area needs to be explored and deepened.
P2P platform is essentially a joint-stock company, so most of them can join.
If you want to join, you can learn more about some companies and take the initiative to investigate and contact. Generally speaking. As long as you have certain strength. There are still many companies willing to cooperate and open up new markets.
However, it should be noted that careful investigation is needed. After all, most investment, consumption and financial lending companies such as P2P are not real financial institutions. So there are certain risks.
There are three main risks.
First, are the relevant national laws, regulations and policies stable and supportive?
The second is funds related to capital security. Is it standardized and can it be restored in time?
Third, is the relevant investment return of funds reasonable? Excessive return on capital is usually unsustainable.
According to my years of working experience, there are three basic modes of operation for such companies.
One is to use its own funds to carry out related financial activities.
The second is to use social funds to carry out related financial activities.
The third is to represent some large formal financial banking institutions.
Therefore, if you want to engage in this industry, you must have a deep understanding and make a multi-party inspection before moving. Never be impulsive! And do a good job in relevant risk management and control.