Since its development, many models have been derived from the concept of P2P. There are more than 2,000 online lending platforms in China.
The platforms have different models. They can be summarized into the following three categories:
1. Guarantee institution guaranteed transaction model, which is also the most common Safe P2P mode.
As an intermediary, this type of platform does not absorb deposits or lend money. It only provides financial information services and is provided with double guarantees by cooperative small loan companies and guarantee institutions. The trading model of such platforms is mostly "1-to-many", that is, a loan demand is invested by multiple investors.
The advantage of this model is that it can ensure the safety of investors' funds. It is jointly guaranteed by large domestic guarantee institutions. If a bad debt is encountered, the guarantee institution will transfer the principal and interest on the second day after the repayment is delayed. The money will be transferred to the investor's account in a timely manner.
2. The model of “credit contract transfer model under P2P platform”.
It can be called the "many-to-many" model. Borrowing needs and investments are broken up and combined. The largest creditor even lends funds to the borrower, and then obtains the creditor's rights and divides them. Through the creditor's rights, In the form of transfer, the creditor's rights are transferred to other investors to obtain loan funds.
3. A comprehensive transaction model based on transaction parameters and combined with O2O (ONLINE TO OFFLINE, combining offline business opportunities with the Internet).
The P2P small loan business created by this small loan model relies on its customer resources, e-commerce transaction data and product structure to gain advantages. The two small loan companies it established offline have a strong influence on its platform customers. Perform services. Offline business opportunities are combined with the Internet, making the Internet the front desk for offline transactions.
4. What is the principal and interest guaranteed model under the P2P platform model? Wrong concept!
The Legislative Affairs Office of the State Council issued the "Interim Measures for the Management of Business Activities of Online Lending Information Intermediaries (Draft for Comments)" and introduced 12 prohibited behaviors for online lending platforms. It stipulates that P2P online lending platforms cannot self-finance, cannot use capital pools to collect funds, and cannot provide guarantees or promise to guarantee principal and interest.
5. WeChat Financial Model With the rapid development of Internet finance and mobile Internet, products combining the two have begun to appear. Currently, some P2P products have appeared on the WeChat platform. Advantages such as "fast, efficient, mobile, and no space restrictions" determine the success of the lightning loan model, and WeChat Finance has its own complete system for risk control. The first is complete information management and big data risk control. In addition to verifying personal financial information, including personal bank cards and credit cards, borrowers will also examine social relationships. The second is to use short-term small amounts to spread risks.
As of the end of July 2016, the number of platforms in normal operation dropped to 2,281, a decrease of 68 from the end of June and a month-on-month decrease of 2.89. There were only 33 new P2P platforms in July, while in the same period last year, there were only 33 new P2P platforms. The number of new platforms reached 217, which shows that the growth pace of P2P has slowed down significantly.
Profit model:
The main income of China's P2P industry comes from credit deposits and other income actually brought by assuming credit risks. According to the latest financial report released by Yirendai, Yirendai’s net income in 2016 was 3.238 billion yuan, and the loan amount facilitated throughout the year was 20.278 billion yuan. In other words, Yirendai’s net income accounted for 16% of the total number of loans facilitated during the same period.
In China, most P2Ps adopt a guarantee model, which has its historical inevitability, because guarantees assume certain bank responsibilities, which goes against the original nature of the company. This is a buffer during a special historical period and will certainly be removed as the market matures. ”
Compared with the United States, when the P2P industry in the United States emerged, the banking industry was already well-established and highly developed. In the process of competing with banks, the P2P industry in the United States took advantage of the cost advantage of its own network technology to use lower Its main business is to help borrowers borrow relatively low-interest loans through P2P to repay high-interest credit cards and bank personal loans.
Since the cost advantage is the selling point of P2P companies such as Lending Club, the platform charges will naturally not be high.
When China's P2P industry emerged, credit scores and other foundations were still being established, and the bank's credit card personal loan business was still in the development and growth stage. For example, Yirendai borrowers need to pay in addition to the interest of 10-12.5, they also have to pay higher fees than the interest. People who are willing to pay such a high price to borrow money are usually people who cannot get loans from banks.
Currently, most Chinese P2P platforms have risk reserves. When a project defaults, investors will be reimbursed at a certain proportion as stipulated in the contract, which can compensate for the risk of bad debts to a certain extent. Yirendai’s financial report shows that when each loan transaction is completed, the platform will withdraw 7% of the loan amount and deposit it into a special account for quality assurance services.
No matter who does it, there are risks. The credit risk of the loan will not change whether the guarantee is cancelled. Credit risk control relies on investors being able to understand the credit rating and background information of the borrower. If the form of loan insurance is still adopted, the entire market will still not be able to take off, which is equivalent to transferring the work of risk assessment and credit granting to P2P companies and insurance companies instead of to investors.