2012 P2P net credit appeared in the "2012 China annual innovation growth enterprise 100 strong" in only selected the financial information service enterprise.

    1.P2P net loan Chinese started: ppdai emerge as the times require

   By the end of 2006, Yunus with the Grameen Bank, opened to provide microcredit is one of the most poor communities around the world and get Nobel Peace Prize in Bangladesh, when people think that this is the loan behavior of a welfare, this batch of microfinance has realized 98.7% high repayment rate. This pattern of the economic benefits and social benefits shocked the whole world, including founder, pat credit was still in Microsoft technology to do Zhang Jun. In 2007 August, the first domestic P2P jot unsecured network lending platform ppdai was born in Shanghai. Small difficulties of domestic financial provided fertile soil for the emerging financial mode of inoculation and growth.
 
   P2P is the "Peer to Peer" the abbreviation, Chinese translated as "peer-to-peer lending", is on a personal loan. The so-called P2P network loans, is interested investors through the network platform, will lend money demand of borrowers. This means that, through the mouse operation on the Internet, can lend money to friends or to borrow money.

    In fact, the personal online trading platform to clap credit transaction is similar to the way "taobao.com". In this platform, the seller the borrower is equivalent to open shop. The borrower and the repayment schedule more times, higher credit level. Borrowers need only specify reasons, borrowing in P2P set on the loan amount, loan period and not more than bank loan interest rate 4 times the borrowing rate. And the fact that lending rates is the formation of the free market regulation results, ultimately ppdai formed the equilibrium interest rate after a supply and demand sides of the game.

    For the money lender, which is equivalent to the online shopping buyers. The lender may choose according to individual borrower lending credit risk preference and the borrower. After a lending transaction intention, net credit company will examine the use of the borrower's loan, approved the transaction to complete.

    The first half of 2009, pat - half a year turnover of less than 10000000 yuan, after 2009 the rapid growth, the first half of 2012 has accumulated turnover of 180000000 yuan. The platform began to realize the profit and loss balance since 2010 August, this time only 3 years from its founding.
 
    In fact, since 2010, a number of P2P network lending company like ppdai tendency such as bamboo shoots after a spring rain as develops, there are more famous peer-to-peer lending, loan speed, easy credit and E 365, Chengrong online etc.. Since 2011, with online 808 credit, micro credit network, Zhongbao investment, search - and a number of new platform, P2P industry and credit China entered rapid development period.
 
   According to incomplete statistics, at present, the active net credit platform has more than 300, since this year the net loan industry turnover is estimated to be as high as 20000000000 Yuan, regardless of the quantity or the amount of the transaction, the net credit of the domestic industry is taking shape.
 

    Practice and innovation in 2 overseas mode

    According to the P2P net credit lending responsibility size, the business can be divided into three modes: Unsecured line mode, secured line model and line model. Because of concerns for the unsecured line mode of borrower credit risk model and line existed potential policy risk big, the mainstream is secured line mode.

 

2.1 pat credit as a representative of the "unsecured line mode"

    Unsecured line mode to pat credit as a representative of the main reference USA P2P net credit leader Prosper experience. Net credit company belongs to simple network intermediary, is only responsible for the formulation of trade rules and provide trading platform, is not responsible for the transaction and the transaction after the loan fund management, do not assume the borrower default losses, do not assume responsibility for security to the lender.

   Net credit company risk control ability of the mode of the weak, the investment risk is relatively large, higher investment income. In the industry the bright younger generation have adopted guarantee, mortgage mode background, ppdai insist on unsecured unsecured business model, using technical means to control risk, on the one hand, can control the net credit company operation and management cost, on the other hand, to ensure that the systemic risk does not assume the net credit platform.

   The means to control risk is mainly carried out through cooperation with more than a dozen national authoritative data center, including the Ministry of public security, identity card information center, the trade and Industry Bureau, the court, by the borrower through the certification approved real names and identity information. After the borrower's identity is verified on the loan to the borrower, the network social circle using credit audit system has comprehensive rating of the borrower based on, and then set the security line of credit.

   In the event of default, ppdai will distinguish malicious breach of contract or difficulties. If the borrower is indeed the problem management, but the repayment will clap credit good, will think of a way to help him through this. For malicious arrears, the loan will be information on exposure to the site of the black list.
    On the other hand, ppdai suggest investors fully decentralized investment to reduce losses caused by the breach to the investors, promote the use of proceeds to cover risks of venture capital concept, encourage the bid selection of suitable rate of portfolio construction, which constitutes a slightly trilogy investment attack ppdai "".

   In addition, although is no guarantee, but it also has some principal protection plan. Specifically, if the following conditions are met, investors enjoy automatic principal protection: (1) through the identity authentication; (2) the successful investment more than 50 loan list; (3) successful loan amount each loan is less than 5000 yuan and less than the amount borrowed 1/3 list. But judging from the historical data, the risk is not highly decentralized investment is benefit coverage ratio of less than 2%.
    For pat credit as a representative of the line unsecured net credit company, its profit pattern mainly through information platform plays a mediating role, in lending after closing according to the loan period is different, a different amount of money people fee. In addition, when overdue, charge a collection fee. In particular, because of its the only pure intermediary, the source of profit does not involve spreads like a bank deposit and lending business.

 

2.2 to the Red Hill VC as the representative of the secured line mode

    The current domestic secured online mode, mainly from Zopa P2P founder of net credit model of experience. Under this model, net credit company is no longer pure Intermediaries: funding for lenders hand net credit company to provide security, on the other hand, pay attention to the management of funds after the loan, also played a guarantor, combined with servicers composite intermediary role. Risk control of this mode is larger, the investment risk is relatively small, and investment income is relatively low.
    Red Hill VC is a good example of this model, it is one of the most profitable network lending intermediary platform at present, 2011 total profit of 5000000 yuan, in 2012 April completed a total loan amount of 800000000 yuan, profit of over 2000000 yuan. Red Hill VC the overdue rate of about 1.6%, in 2011 the overdue rate was controlled at about 1%.
    Red Hill venture with the biggest difference is introduced on loan from its holding 90% of the Shenzhen trust Company limited by guarantee, providing information consultation and compensation for the guarantee for the parties to the transaction. Red Hill VC investors became the site of a member of VIP, if overdue debt or the formation of bad debts, loss of principal by the website partners one hundred percent advance. Non VIP investors encounter bad debt, loss of principal by the website cooperation to advance fifty percent. In order to protect the interests of investors and the website, red hill venture invested a lot of manpower, material resources for the qualification examination and overdue debt collection, has formed a strong risk control team audit, investigation, collecting a total of more than 30 people.
    From the profit model, red hill VC and patted the credits are providing intermediary services based on, just in different charging categories and items. Ppdai charges only for borrowers, and red hill VC source of fees include borrowers also includes the lender.

 

Mode 2.3 to the appropriate letter on behalf of the line

    In fact, as the P2P net credit from abroad in China has appeared a new mode of development -- the line. Net credit company of this mode of the traditional folk lending development, the network is a kind of publicity channels, to attract lenders and borrowers to the company to discuss business. Its characteristics are often require the borrower to provide collateral, guarantees to lenders. The quality of this mode of loans is relatively good, lower risk, income is relatively lower, but there are risks turning into illegal fund-raising.
    Zhang Jun and pat - founder Downing founder, appropriate letter wealth has been Yunus's spirit, but he walked out of the model an atypical road --P2P line, "Financial Times" said that the amount of its lending in between 20-30 million. In order to avoid corporate lending risk behavior and become illegal financing, Downing designed the creditor's rights transfer mode. Specifically, his first money to lend to borrowers, and then split claims from the amount and time, through online financial products under way by large number of business personnel transferred to the real money lenders.
    In terms of risk control, the letter should provide real-time matching small loans to individuals for personal needs, the allocation of funds for lending to a plurality of borrowers, in a decentralized financial risks, and the introduction of credit analysis and decision management technology provider FICO (Fei Aizhe) credit score technology develop credit assessment and verification system and process. At the same time, it set up the repayment risk gold special, when recovery lent money to compensate the lenders, principal and interest loss.
   Because the business cost is higher under the line layout, the actual cost of the borrower to pay is often more than 30%. The letter should be more than the statutory lending rate to four times the part into ratio ranging from service fees, creditor's rights transfer fee (1%-2%) and the risk margin (2%) so as to avoid. On the other hand, the rate of return of financial products in general about 10% level. Because of the spreads between deposit, the letter should profit space compared with the traditional line mode is greater. In summary, the essence of different P2P net credit platform three models is the role, which determines the responsibility and the corresponding source of profit.

    The phantom of the opera with 3 investment risk

   Market discipline is always a high yield with high risk, for the P2P net loan, the risk sources except from external policy and regulatory risk, the risk of credit risk and credit participants in net credit platform itself is increasingly prominent.

    Participants 3.1 net loan credit risk

    Compared with the foreign model, at present our country's credit system is still in the early stages of construction, the lack of domestic similar to Europe's perfect personal credit certification system. At the same time, the credit management system of the central bank is currently does not allow the net credit platform invoke personal credit information. Therefore, the current domestic P2P net loan to the lack of effective external supervision and credit record information, risk control almost had to rely entirely on the platform of the internal mechanism, thereby greatly improving the domestic P2P net credit costs and the risk of bad debts.

   The results of internal control risk depends on the net credit platform is a platform, different risk level between different. From the relative ratio, the industry leader Red Hill venture debt rate is about 1.4%-2%, pat the loan rate of bad debts is 1.19%, this level relative to the average bank is a very basic. As of July 31, 2012 808 credit loans overdue rate reached 5.69%, far exceeding the average level during the first half of this year all the listed bank 1.28%. From the numerical point of view, net credit company mainstream overdue amount generally in the millions to tens of millions of dollars.

    Risk 3.2 net credit platform

   In addition to participants in the credit risk, the more important is the risk of net credit platform itself, mainly in the following three aspects:
 
(1) the net credit company credit risk

   Because the flow of funds is small in scale, most banks did not give the P2P trust fund net credit company service, which would give the poor management of the fund custodian of the opportunities for fraud some malicious founded net credit platform, this is also the reason why the "gold credit" and "angel plan" fraud case to happen.

 (2) the fierce competition of business risk
 
   Because the net credit platform founded early are often difficult to profit, higher operating costs, coupled with the current fierce competition in the industry is more prolonged "burn money" stage, the long-term difficult to profit platform will have to face closure. In 2011 July, ha ha credit announced the closure of. In a year and a half of Business Hours, made only about 300000 of profits, and compared with the about 2000000 annual cost, this part of profit is obviously an utterly inadequate measure, funds stretched to ha ha credit finally difficult to continue. A similar situation in the future may be more and more frequently in the early barbarian growth industry.

(3) the high security lever caused by market risk
 
  "Interim Measures" provisions of the risk management of SME financing guarantee institutions, 5 times the guarantee liability balance of guarantee agencies generally do not exceed the guarantee its paid in capital, is highest do not exceed 10 times. And the security of net credit company exceeded 10 times the warning line is the industry norm, once the occurrence of systemic risk, default of large area will drag down the net credit platform.
 
   The foreign mature platform of Zopa and Prosper's experience, because the two are secured and unsecured mode, which determines the difference between the two levels of risk and return is very obvious. Specifically, the rate of bad debts overdue in Zopa history has been controlled at a level of about 2%, while the average debt rate of Prosper reaches 7.42%, the corresponding Zopa yield levels in the 5.6%-7.5%, and the average profit rate as high as 17.11% Prosper. On the current domestic net credit platform yield level, the general is in 15% above, and different patterns between the yield difference is not obvious. Therefore, we think, of which a large part is the embodiment of the investors for the risk premium for net credit platform.

   On the demand side of P2P net loans, currently provides small loans to the market models in addition to the P2P net credit, a small loan companies and private lending occupy an important position. Comparatively speaking, on the one hand, the net credit operations are far less than the cost of small loan companies, on the other hand, it is unable to provide the guarantee, mortgage groups to provide a convenient financing channels, the most important is the P2P net loan to the network breaks the limits of time and space, the development of space on a scale far greater than its own capital lending of small loan companies. Compared to the traditional P2P net borrowing, lending eliminates borrow from friends and relatives when unspoken awkwardness, and highly diversified investment so that even if the credit risk will not pose too much influence to the lender. It is precisely because of these advantages, P2P net loan growth, development and has strong gene in small loans to this market segment.

   On the supply side of P2P net lending, because it provides a flexible way of investment for the market, and gives investors a higher income levels, and mature platform more perfect security system, compared to the traditional investment and financing channels has its unique advantages, subject to a number of investors. Because of this, the net credit of this model to attract a large number of funds, have sustainable development vitality.
 

   The P2P net credit evolution direction of view, the financial institutions and banks, small loan companies have business cooperation and docking may. As a wholly owned subsidiary of the CDB CDB financial, Finance Office of Jiangsu province and Jiangsu gold farming companies work together to establish P2P net credit company "Kaixin loan" will be officially launched operations. In addition, China peace founded in March this year Lu Jin specializes in small business loans, permits large group under the "small loan website in E loans" also officially launched in April this year. Banks and large capital mechanism of the water, will provide new opportunities for the healthy growth of the industry and credit.
 
   On the other hand, because the property has the folk financial P2P net loan to large extent, and no constraint is enforced by the system of domestic credit market at present, which leads to the financial system to realize the marketization of interest rate, so the net loan yields can be observed in private credit markets window. Further, with the net credit platform and regional financial institutions continues to advance, the localization trend will make it as the regional credit supply and demand continue to highlight the observation window function. This may provide a new, feasible way for us to observe an area of economic activity from the micro.