"The success of Yu'e Bao is actually inseparable from the openness of the Internet and the grassroots culture of serving it." A fund company executive believes.

"In fact, many banks provide very inadequate services to grassroots users, who may account for 80% in the Internet era." said Guo Ming, director of the financial management department of Alibaba Small and Micro Financial Services Group.

"'Dislike the poor and love the rich' is understandable to a certain extent." A person in the banking industry said, "Small and micro finance is dirty work. Large enterprises make more money from one order than small and micro enterprises from hundreds of orders. Banks

Doing small and micro finance is a business with a very low input-output ratio. "Some banks even stipulate that if the amount in the account is less than a certain amount, the account will be charged a management fee; the starting point for bank financial management is often calculated in tens of thousands, and grassroots users often.

There is not enough disposable income to purchase financial products.

However, the lack of funds among grassroots users does not mean that they have no willingness to manage money.

Although the average size of grassroots users is small, the sum of small amounts adds up to a large amount, and the total amount will be quite large.

In fact, compared with banks with total assets exceeding one trillion yuan, the public fund industry, whose total scale is still hovering around 3 trillion yuan, has always been looking forward to tapping grassroots users.

But before Yu'e Bao, it was difficult to find a suitable breakthrough.

"First of all, Alibaba has a deeper understanding of the Internet than traditional financial institutions, and small and medium-sized fund companies like Tianhong Fund are also more motivated to innovate; secondly, Alibaba has a huge user base and a high amount of accumulated funds." A person in the Internet finance industry

people said.

Zhou Xiaoming, deputy general manager of Tianhong Fund, said that Yu'e Bao customers are targeted at "moon-money earners" and "novice" customers, setting off a "grassroots financial feast" with sales starting at 1 yuan, and "anywhere, anytime, at your fingertips, no queuing, no hassle"

You don’t have to worry about filling in forms or opening an account online, and you don’t need to study much to use it.”

"In the Internet era, with a few more clicks of the mouse, customers may disappear." A person close to the regulatory authorities said, "Although the subscription amounts of some products of traditional fund companies are low, the cumbersome account opening process hinders the willingness of potential customers to open accounts.

"When purchasing Yu'E Bao products, Alipay users do not need to fill out forms, check boxes, etc. They only need to click "Transfer" to Yu'E Bao in their Alipay account, which is undoubtedly more convenient.

"Small companies follow the old path. If they do it, they are seeking death. If they don't do it, they will wait for death. If they are poor, they will want to change. Small and medium-sized companies must innovate." Zhou Xiaoming has previously said that through constant communication, Tianhong Fund and Alipay have realized the direct sales of monetary funds.

Yu’E Bao model.

The above-mentioned fund company executives are envious of Tianhong Fund "for being able to ride on the big tree of Alipay."

"There are 800 million registered users of Alipay and about 200 million active users. Converting such a number of users into the number of direct selling customers and converting the capital pool into monetary funds is undoubtedly a huge amount." The aforementioned fund company

executives said.

"Yue Bao, which is composed of Alipay's accumulated funds, has huge profits. Alibaba is obviously not willing to just be a platform." A person in the fund industry said.