Consumer finance is a financial service that provides consumer loans to users. Consumer finance is mainly provided by consumer finance companies. Consumer Finance Company is a licensed financial institution approved by China Banking Regulatory Commission, which specializes in providing consumer financial services.

Before the emergence of consumer finance companies, consumer finance services were mainly provided by banks, and the consumer credit department provided consumer finance services for banks. The loan amount of general consumer finance is not very high, and many banks do not invest much in this business. The same manpower to make large loans can bring higher profits to banks. It is impossible to meet people's needs only by providing consumer financial services by banks.

In order to better meet people's needs, China formally established a consumer finance company, specializing in consumer finance business. Consumer finance companies are very different from banks. First, consumer finance companies can't absorb deposits, but only engage in lending business, and their business types are relatively simple. Secondly, consumer finance companies can only engage in small credit loans, not large loans.

The main purpose of consumer finance companies to formulate these rules is to avoid excessive overlap with banking business. Consumer finance companies can complement each other, which can not only better meet the needs of the people, but also deepen their cultivation in sub-sectors and enhance their competitiveness.

At present, the marketing methods of consumer finance companies are mainly through the combination of online marketing and offline marketing. Through the joint marketing of the two channels, users can initiate loan applications online. At the same time, consumer finance companies can directly give the user's loan application results through the verification of online risk control model, which is very convenient and fast and has a good user experience.

Related questions and answers: What is consumer finance? Merton (197 1) defines consumer finance as: how to make the best use of assets to meet the various consumption needs of consumers in a given financial environment. Consumer finance is a modern financial service mode that consumer finance companies provide small unsecured consumer loans to consumers at all levels, which can promote consumers' living standards and economic growth. Its business mainly includes personal durable consumer goods loans, general-purpose personal consumption loans, interbank lending, and the issuance of financial bonds. Consumer finance companies are non-bank financial institutions that do not absorb public deposits and provide loans for the purpose of consumption for individual residents in China on the principle of small amount and dispersion. However, by analyzing the situation of residents' consumption and financial market in China, it is found that the construction of personal credit system is backward and the risk of information asymmetry is great, which has long formed the consumption habit of "living within our means". At the same time, the relevant laws, regulations and system construction are not perfect, and the prospect of consumer finance system is not optimistic. Therefore, the most urgent need at present is to take practical and effective measures to improve the consumption power of residents. Only when the national consumption level is constantly improved and people dare to spend boldly can consumer finance have a broad development space. The narrow understanding of consumer finance is financing activities directly related to consumption, especially short-term simple consumption. This understanding is obviously too limited. We try to give consumer finance a more appropriate and broader meaning on the basis of financial economics, that is, financial problems related to consumption. Here, we have expanded the meaning of consumption and finance. The consumption we are talking about is not limited to the consumption of daily life, but also includes the use or consumption of all resources for non-productive purposes. Finance includes not only the financial problems faced by consumers themselves, but also the financial technologies, products, services, laws, regulations and policies related to consumption of markets, institutions and governments. So the consumer finance we are talking about here is a more comprehensive and complete concept.

Related Q&A: Recently, China Ping An Insurance was approved by the China Banking Regulatory Commission to obtain a consumer finance license. What is consumer finance? What is the specific business? Since the first batch of consumer finance companies were piloted in 20 10, licensed consumer finance companies in China have developed for 9 years. During this period, 27 consumer finance companies obtained licenses and 23 consumer finance companies officially opened, and entered the market to provide consumer finance services to users.

Consumer finance refers to the financial service mode that consumer finance companies provide loans to consumers for consumption (excluding buying houses and cars). It has the characteristics of small single credit line, fast approval speed, no mortgage guarantee, flexible service mode and short loan period. The maximum amount of personal consumption loan is 200,000 yuan. Based on consumers' different buying behaviors, consumer finance covers consumer items such as durable consumer goods, tourism and catering, wedding, education and training, health and beauty. , mainly for low-and middle-income people with strong consumer demand.

The consumer finance license must be approved by the CBRC and belongs to a non-bank financial institution that does not absorb public deposits. Its sources of funds include: 1) accepting deposits from shareholders and their domestic subsidiaries, 2) borrowing from domestic financial institutions, 3) issuing financial bonds, 4) domestic interbank lending and 5) asset securitization.

With the change of consumption concept after 1980s and 1990s, there is a huge space for consumer credit and leverage, and the market demand for consumer finance will remain strong in the next few years. Consumer finance license, which belongs to the financial field encouraged by the state, can directly participate in interbank lending as a non-bank financial institution. , the license value is significant. At present, a total of 27 institutions in China have obtained consumer finance licenses, which have formed three categories: banking, e-commerce and industry.

Policy support for the use of consumer finance has become the next way out. Since the CBRC issued the Measures for the Pilot Management of Consumer Finance Companies in 2009, consumer finance has gradually developed, and the first batch of four consumer finance companies have been established. In the summer of 20 15, the executive meeting of the State Council decided to liberalize the market access of consumer finance, and the pilot of consumer finance companies was expanded from 16 to the whole country. The power of examination and approval is delegated to provincial departments, and qualified private capital, domestic and foreign banking institutions and Internet companies are encouraged to initiate the establishment of consumer finance companies.

Consumer financial products mainly include durable consumer goods loans and cash loans, among which consumer goods loans are mainly aimed at consumers' high-frequency commodity consumption and service consumption, including durable consumer goods, tourism and catering, weddings, education and training, health and beauty, etc. In the initial stage, consumer finance companies usually use consumer goods loans to minimize risks and gain users more conveniently. After the scale, they will strengthen the secondary sales and turnover quota of cash loans, improve the deep coverage of users, and at the same time overlay services and improve the income level. The maximum amount of personal consumption loans and cash loans shall not exceed 200,000 yuan, and the single installment amount shall be the price of consumer goods. The scale of a single loan depends on the risk control system of a consumer finance company, which is approved and evaluated according to the credit status of consumers, usually not exceeding 50,000 yuan. For example, buy loans for English services of EF Education, Weber Education, Wall Street and Midland.

In June, 1 1, the consumer finance license was approved for opening, and the supervision successively released the signals that two gold-absorbing institutions were approved.

165438+1October 2 1, China Ping An was approved to set up a consumer finance company in Shanghai,1October 26,165438+Chongqing Banking Insurance Regulatory Bureau approved Chongqing Rural Commercial Bank to participate in the establishment of Chongqing Xiaomi Consumer Finance Company. The value of consumer finance licenses will continue to rise.