The financial report for the first quarter of 2020 shows that Ping An Bank issued “New First Loan” of 14.461 billion yuan through the MGM (Customer Introduction) model, accounting for 63.8% of the overall “New First Loan” issuance ratio. This ratio continued quarter-on-quarter. improve. The so-called MGM model is to develop customers into "agents" and acquire customers through agents. However, many practitioners told the consumer finance industry that Ping An’s MGM model in name is actually mostly an offline intermediary sales business.

MGM mode is more common in "Ping An series". Ping An Insurance, for example, develops employees' relatives and friends into agents to acquire customers through a second- and third-level distribution model. In Ping An Bank's lending business, it has obviously undergone processing and transformation. This model is by no means unique to Ping An. Financial institutions including Feidai have doubled their monthly loans through the agency model. But the negative effect also caused them to lose some channel partners.

The true successor to the MGM model is the promotion of credit cards. According to an industry insider, China Merchants Bank, China Minsheng Bank, etc. have all used the customer acquisition model of “bringing old customers to new customers”. "Among them, China Merchants Bank used this model to set a new growth rate in credit card customer acquisition from 2012 to 2015, while China Minsheng Bank has used this model to obtain customers in recent years, but it failed to succeed," said the person above. The MGM model, which looks fashionable on the outside, actually requires strong local promotion and intermediaries. This kind of tiring work, even dirty work, may not be seen in the financial report.

To ensure the quality of underlying assets, the consumer finance industry has learned that Ping An Bank attaches special importance to the agent model of bringing in the new with the old. "The leaders kept preaching at the meeting, and the salespeople below will do their best to promote the MGM model. We will also give certain interest rate discounts to customers who are referred by old customers." An industry insider close to Ping An Bank people said.

The financial report shows that, in addition to "Xinyidai", Ping An Bank issued 13.854 billion yuan in auto finance loans through MGM, accounting for 36.5% of the total auto finance loans issued; 426,500 credit cards were issued through the MGM model. The proportion of new card issuance was 28.5. In addition, Ping An Bank also stated that the overall asset quality of customers obtained through the MGM model is better than other customer groups.

At the end of 2019, the customer group non-performing rate of “Xinyidai” customers acquired through the MGM model was 0.69, 0.65 percentage points lower than the overall non-performing rate; for credit card customers obtained through the MGM model, the customer group non-performing rate was 0.69. It is 1.46, which is 0.20 percentage points lower than the overall non-performing rate. For customers obtained by auto finance through the MGM model, the customer group non-performing ratio is 0.74, which is the same as the overall non-performing rate and remains at a low level.

“Compared with other methods, the MGM model can undoubtedly better control risks. For high-quality customers with good credit records, it can open higher permissions to attract more users. "An industry insider analyzed. The "high-quality customer clustering" effect ensures the quality of the bank's underlying assets. Ping An Bank is not the only beneficiary of the agent model. Feidai also rapidly expanded its business scale through a similar "agent" model.