The rise of Internet finance has led to the rapid development of consumer finance. Many platforms have used consumer staging to increase transaction volume. At the same time, those e-commerce platforms with Internet genes have greatly increased user stickiness. With the whole consumer tide returning from online to offline, consumer finance has begun to re-infiltrate offline markets. However, offline consumer finance has always been the battlefield of traditional financial institutions. Today, under the impact of new technologies, traditional financial institutions Have to consider open cooperation, especially in the field of credit cards, the use of financial technology to retain consumers is becoming the industry consensus.
Phenomenon 1: Jingdong financial white strips, ant flower buds have accelerated to the offline market
Compared with online e-commerce consumption, offline consumption has more market space, and there are more consumer scenes. In addition to shopping, there are also many online consumer experience scenarios such as catering, entertainment, and medical care. Since the beginning of last year, Jingdong Baitiao and Ants have begun to accelerate their expansion into offline consumption, covering a variety of offline consumption scenarios such as retail, education, medical care, entertainment and travel.
With the advent of the new retail era, the popularity of Alipay and WeChat offline code-based payment, consumer finance led by Jingdong Bait and Ants Flower Market has also begun to be popular in the offline market, especially by the users. After the 80s and 90s of becoming the main consumer group, they are welcome.
Phenomenon 2: Jingdong Finance and traditional banks cooperate to speed up
Beginning in September last year, JD, a subsidiary of JD Finance, cooperated with the bank to launch a “white strip flash payment†for the offline market, achieving full coverage of the offline market. In January of this year, Jingdong Finance reached a strategic cooperation with China UnionPay and signed a joint card with 12 banks. In just one month, they landed this cooperation with lightning speed, and the joint credit card “Xiaobai Card†jointly operated by Jingdong Finance and Minsheng Bank began to apply online.
The launch of “Little White Card†is also the demand for offline consumption of users, covering various preferential rights such as clothing, food, housing and transportation. Based on Jingdong Finance’s user big data mining and analysis, it can better meet the consumption habits and needs of young people. An important signal has also been released: financial technology and traditional financial institutions will jointly launch an offensive to offline consumer finance.
On the one hand, online financial platforms have begun to march into the offline; on the other hand, financial technology giants have begun to jointly attack the offline consumer financial market with traditional financial institutions, which will inevitably bring about tremendous changes to the entire traditional consumer financial market.
How big is the cake after the consumer finance market is reshuffled?
Relevant data show that China's consumer finance market has exceeded 9 trillion yuan in 2015. It is estimated that China's consumer credit will exceed 37 trillion yuan in 2019. There is still huge market for consumer finance in China. In the traditional consumer finance market, there are many market pain points that have been criticized by users.
Pain point 1: In the past, both banking institutions and consumer credit companies, as old players in the consumer finance field, due to their inherent thinking mode, their consumer financial products have always lacked innovation, unable to meet the post-80s, 90s and even 2000s. Waiting for the consumption needs and consumption habits of the new generation of young consumers.
Pain point 2: For most consumers, in the past, whether it is borrowing or applying for a credit card, it requires more complicated procedures. Even many times, users need to wait for a long time to realize loan consumption or use credit card consumption. Low has become a major pain point for traditional consumer finance to be criticized by users.
Pain point 3: For traditional consumer financial institutions, they often lack multi-dimensional data on user life behaviors, consumption habits, etc. It is difficult to quickly identify users' credit risks, and there is still a large gap in their own risk control. Insufficient, this is also an important reason for the slow development of traditional offline consumer finance in China. In contrast, in the United States, which has improved user credit data, its offline consumer finance market is highly developed.
Financial technology has infiltrated offline consumer finance, and has accumulated rich experience in user operations and risk control of offline consumers. Jingdong Finance, as a giant of financial technology companies, has reached strategic cooperation with traditional banks for the entire traditional offline consumer financial market. It will have a huge impact, and the past three types of traditional consumer financial products will face changes in the model.
1. Traditional consumer financial products with relatively low efficiency in the risk control system
At the beginning of this year, 12 banks signed a cooperation agreement with Jingdong Finance on the UnionPay branded credit card. After a month, they quickly launched a joint credit card “Little White Card†with Minsheng Bank. The first thing that relies on the bank’s trust is Jingdong Finance. The users are highly complementary to the bank users. Secondly, the bank is interested in a set of risk control technology and user credit evaluation capabilities of JD Finance. In the “Little White Cardâ€, Jingdong Finance exported the “Little White Credit Score†data risk control cooperation to Minsheng Bank, through the use of Jingdong Financial's risk control model system, quantitative operation model system, user insight model system and big data credit. Model system, "small white card" can describe users from multiple dimensions such as user identity feature image, individual user evaluation, performance history evaluation, relationship network assessment, network behavior preference, credit risk prediction, etc., thus providing risk control decision for credit card. This means that the bank's approval of credit card approval will be greatly improved.
Risk control is extremely important for any financial product. Especially for consumer financial products, risk control is the core key to make products go long-term. Many traditional consumer financial products are often very cautious. In today's highly developed Internet consumption and information technology, the limitations of bank risk control methods are becoming more and more prominent, which will inevitably lead to the weakening of their consumer financial products or credit card competitive advantage. .
Second, the traditional consumer financial products with relatively weak user experience
Whether it is ant flower buds or the white stripes of JD Finance, the reason why they can quickly become popular in the offline market, one of the most important reasons is their convenience, users can quickly open and use online consumption scenarios through mobile phones.
Even if Jingdong Finance and Minsheng Bank jointly launched the “Little White Cardâ€, they can quickly score the customer's information and credit through the system model. The quality customers can even achieve the fastest 3 minutes of approval. The whole process is completely online. , automated credit and audit, can achieve 24 hours a day, uninterrupted service, not only greatly saves labor costs, but also enhances the user's card opening efficiency and consumption convenience.
For users, they are naturally reluctant to submit cumbersome information and spend a long time applying for traditional consumer financial products. In the end, traditional consumer financial products that are inefficient often cause user loss.
Third, the lack of accurate consumer traditional consumer financial products
At present, there are quite a lot of traditional consumer financial products on the market, and there are many bank credit cards, but they often face the embarrassing situation that financial products are difficult to sell. In fact, users do not have financial consumption needs, but the products themselves do not find the accuracy that suits them. User. Consumer financial products with big data analysis and intelligent technology can quickly grasp the consumer's consumer demand and consumption habits, so as to achieve accurate customer acquisition and better user management.
Based on the understanding of consumers, Jingdong Finance is also very suitable for young people's consumption habits in the design of product rights, making “Little White Card†a financial service tool that is more in line with young people's consumption habits and advocates personalized life. In marketing methods and user operators, JD Finance can also help banks achieve accurate customer acquisition.
Undoubtedly, financial products that fail to meet consumer demand will inevitably be strongly impacted by new products, and users will eventually vote with their feet.
Traditional financial and financial technology giant "crystal" will jointly dominate the offline consumer financial market
In fact, whether it is the hot O2O era, or today's new retail trend, its essence is online and offline, and consumer finance is also the same. Initially, the consumer finance online market took root, and then it was learned by the Internet financial platform. The online consumer field has been extended, but its final outbreak will return to the offline with the new retail era, and the online and offline will be fully integrated.
In the current offline consumer finance field, there is still far less than 100% penetration into every consumer scenario. The online consumer finance platform has certain advantages in the fields of Internet operations, technology, and big data credit, which can help offline. Consumer finance increases risk control, efficiency, and smarter user management and analysis. But online consumer finance platforms lack two of the most important things:
One is the offline consumption scenario. The consumption scenario is crucial for the development of consumer finance. Ants and Jingdong Baizhi can become the two giants of Internet consumer finance, benefiting from their respective e-commerce genes, but they are lacking online. Natural consumption scenarios; the other is the lack of relevant financial licenses, etc., while their financial infrastructure under the Internet is also weak, and lack of offline resources.
On the contrary, although traditional consumer finance has many pain points such as risk control, credit reporting, and insufficient user experience, traditional financial institutions have been working deeply in the past few years, accumulating a lot of financial service experience, customer resources and offline cooperative consumption. The scene, especially China UnionPay, its POS machine has covered supermarkets, restaurants, entertainment and other consumer places in many 1 2, 3, 4 line cities across the country. Prior to this, JD.com's joint-name e-account "White Strip Flash Payment", which was co-operated by China Baiyin and China UnionPay, quickly realized more than 8 million merchants nationwide, covering approximately 19 million UnionPay flash POS machines. This time, Minsheng Bank landed "Little White Card". "The same can be achieved by complementing each other's advantages and resources. Jingdong Financial's open technological capabilities and risk control technology capabilities will also be used by more financial institutions.
From this point of view, it is difficult to achieve a pool of spring water in the entire offline consumer financial market, relying solely on its own strength; traditional financial institutions want to further penetrate the consumer financial market online, while expanding new users. Resources, you need to borrow new ideas and new technologies from the financial technology platform, in order to continuously innovate new products that are more suitable for users. Only the combination of online financial technology platform and offline traditional financial institutions can truly consume consumer financial markets online. Going further, eventually detonating the entire trillion-dollar offline consumer financial market.
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