The "China Social Enterprise and Social Investment Forum" was held grandly in Beijing. Representatives of outstanding enterprises in Huinong Loan also attended the forum and won the highest award of the forum - "Social Enterprise of the Year Award".
When Chairman Zhang Yida received the trophy awarded to Huinongdai by the organizer, the host smiled and said:
“Enterprise with feelings, responsible finance.
I believe that all the guests in the audience, like me, are very interested in the business model and development history of Huinongdai. Please tell us a few words, Mr. Zhang!"
Zhang Yida didn't refuse. How could he miss such an opportunity to show up? So he replied: "Okay, then I will just say a few words."
Then Zhang Yida took the microphone and said to the audience:
“Huinongdai was established in June 2014 and has been in development for a year and a half.
When the company was first established, I set a goal: to serve 500,000 borrowers and lend 10 billion in three years.
Friends who have a certain understanding of the rural credit market should know how difficult it is to achieve this goal.
The lack of a credit reporting system, difficulty in risk control, high capital costs, and large geographic cross-services will all restrict the development of rural credit market business.
Therefore, we have been exploring business models in the second half of 2014 and did not dare to start volume too quickly.
During this period, we successfully developed a business model in Valley County, Gan Province.
That is to combine local industries and issue entrepreneurial loans to farmers...
With this successful model, we subsequently launched a capital increase of 1 billion yuan and established 10 Huinong small loan companies in various provinces and cities across the country.
Throughout 2015, we issued a total of 2.86 billion yuan in agricultural loans, benefiting more than 113,000 households.
The reason why our business volume has increased so much is, on the one hand, because we have a successful model and we just need to copy it to other regions;
On the other hand, we embrace digital financial changes, use big data, artificial intelligence and other Internet financial tools, and combine the actual needs of rural groups to independently develop a financial service client for the rural market - Huinongdai APP.
Huinongdai uses the mobile terminal as the carrier, is supported by informatization and big data, and supports identity verification and login through "identity authentication + face recognition".
It allows farmers to make online reservations for credit services, check progress, handle business, and repay online without leaving home, which truly improves the customer experience.
The face recognition technology in the APP also greatly reduces identity recognition problems.
In addition, we also explored a risk control model of “five-household joint insurance”.
Through this kind of moral restraint among fellow villagers, even if one household fails to pay back the debt, the other four households will help each other to tide over the difficulties, thus minimizing the risk.
In addition, Huinongdai also purchases death insurance for all borrowers to prevent loan losses due to sudden death and other reasons.
The credit salesmen of Huinongdai are also selected from local people with certain prestige and connections, which can be regarded as another kind of "localized operation implementation"!
These credit salesmen don't just wait for business to come to their door every day. They go around the countryside every day, chat with villagers, and ask if there is any demand for credit.
At the same time, they must also assume the responsibility of manual review and conduct a comprehensive assessment of the borrower's labor quality, skills and willingness.
Whether it has production capacity and certain means of production, such as land, in short, it can ensure that the borrower can repay the loan through production activities after obtaining this small loan.
Since its operation, the bad debt rate of Huinong Dai has been controlled within 0.5%, and the overdue rate of more than 30 days has also been controlled within 1%.
To be honest, I was a little surprised to achieve such good operating results.
It can be seen from this that farmers in domestic rural areas are still very simple and trustworthy.
Our next step in Huinong Loan will continue to focus on expanding business volume and reducing capital costs.
While entering more areas and serving more farmers, we must also gradually reduce interest rates and provide farmers with the most convenient and preferential financial services."
…
"Okay, thank you Mr. Zhang for sharing, which gave us a clearer understanding of the development process of Huinong Loan.
At the same time, I also wish that Huinongdai will develop prosperously, benefit more users, and open up the last hundred meters of rural finance as soon as possible."
After Zhang Yida finished sharing, the host made a concluding speech.
After Zhang Yida stepped down, Tang Lin, a senior fellow from Beijing who was sitting next to him, gave him a thumbs up and said, "Yida, the results of Huinong Loan are blinding!"
"Haha, senior brother, you are overly praised. This achievement is still far from satisfactory." Zhang Yida was modest and said with a wry smile:
"I made a promise of "tens of billions of loans in three years," but now half the time has passed and the progress is only 30% complete. I'm a little worried, what should I do if I can't complete it?
Hey, that’s such a slap in the face.”
Tang Lin's face was full of disbelief, and he said: "Isn't this hard to beat you? Last year, we loaned 3 billion, this year, 6 billion, and the first half of next year, 6 billion. The total is 15 billion, brother. We exceeded the target."
Zhang Yida didn't argue, smiled, and said to himself: It's not that simple, the business volume doubles every year.
"Is your bad debt rate and overdue rate that low?" Tang Lin asked again.
Zhang Yida nodded: "The data are all true, and the five-household joint insurance policy is very effective."
Tang Lin took a long breath and said: "The difference between cities and rural areas is really big. Your rural credit overdue rate is only 1%. Do you know what our rate is?"
10%.”
Zhang Yida shook his head and said: "The two cannot be confused. In cities, they are all consumer finance, and loans are for food, drink and fun. In rural areas, they are business loans, to get rid of poverty.
The borrower's inner thoughts and ability to perform the contract are different.
And our interest rates are so low, the minimum has been lowered to 12%.”
Tang Lin stopped talking. Yiyindai divided its customers into four categories based on risk pricing, with the highest annual interest rate reaching 39.5%. Compared with Yiyindai, Huinongdai is indeed a conscientious loan.
If they don't repay loans with such low interest rates, then these borrowers are really very unscrupulous.
But Yiyindai is a commercial institution, so it needs to be well-established. Huinongdai was invited by Zhang Yida.
It is true that the two cannot be compared!
"Yida, what do you think of the overseas consumer finance market?" Tang Lin asked Zhang Yida again.
Zhang Yida was a little alert, guessing that his move out to sea had attracted Tang Lin's attention. After thinking about it, he said: "It can be considered a wild land. The land is quite wide, but there is a lack of farming tools."
Tang Lin nodded, and the result was the same as their investigation. The Southeast Asian market is quite big, but the infrastructure is too poor.
Mobile payment, big data, credit reporting system... nothing.
Yimin Wangjin and Yiyindai are currently the only two listed companies in China. Naturally, every move of Yimin Wangjin and Yiyindai is observed under a magnifying glass.
The operating data of Yimin Bank, an Indonesian holding subsidiary released by Yimin Wangjin, were also analyzed by them, and they concluded that the market is not mature for the time being, and it will take some time to enter.
Unlike Yimin Wangjin, which has deep financial resources, Yiyindai raised US$75 million from its listing.
Precisely because there is not much capital, the group's internal executives are very opposed to hastily entering overseas markets before the domestic domestic market is fully digested.
However, Yiyin Dai is only a small segment of Yiyin Group, and their main business is wealth management.
In the wealth management sector, they have been deploying overseas for a long time. They established a branch in Hong Kong in 2013, a Singapore branch in 2014, and an Israeli branch in 2015.
This year they also plan to establish a US branch and enter the European market next year.
Yiyin Wealth’s goal is to become: the wealth management brand preferred by high-net-worth Chinese around the world.
Yiyin Fortune also has family office business. Tang Lin heard that Yimin Fortune also established a Xinhuo family office some time ago, so he asked Zhang Yida:
"Yida, how is the family office business of Yimin Wealth going?"
When Zhang Yida heard this, he remembered that the other party also had wealth management business. Now the business of Yimin Company is completely competing with Yiyin Group.
Wealth management, P2P, and consumer finance mainly fall into these three categories.
In addition, they also have a venture capital fund called Hua Chuang Capital, which is somewhat competitive with Huayi Capital!
However, the domestic market is huge, and there are not just one or two companies competing with each other, but dozens or hundreds.
If Tang Lin insists on being cautious about him, Zhang Yida will not let him go just because he is his senior brother.
Now that he saw him coming to "gather information", he might just ask casually, but Zhang Yida still felt a little more vigilant and replied with a smile:
"I am a big client, so my own assets account for most of the management share. Others basically invest one to two hundred million dollars just to show their face."
Tang Lin didn't ask any more questions. He also knew that there was a lot of competition between Yiyin Group and Yimin Group. If he asked more questions, he might cause bad misunderstandings.
On the other hand, Yiyin Group and Ruixiang Group still have deep cooperation.
Yiyin Group spends tens of millions of advertising fees on Ruixiang Group every year to attract customers for financial management and borrowing.
Yiyindai also purchased Ruixiang’s risk control system and connected to Ruixiang’s mung bean credit score.
Therefore, he is also very measured and will not create any estrangement or even displeasure with Zhang Yida just because of some competition.
"I heard that you are developing smart investment advisory, how is it going?" Zhang Yida asked.
"Haha, it's coming soon. It will be released in a few months." Tang Lin said with a smile, and then asked Zhang Yida: "Ruixiang has invested so much in the field of AI, so the robo-advisory product should be doing well, right?"
Zhang Yida said with a smile: "We have achieved some results! The product will be officially released soon. The level of products on the market now varies, and most of them are in the conceptualization stage.
Since we are going to do something, we must do it in a practical way.”
Tang Lin also agreed with this point of view, saying: "The United States began to rise in 2010, and our development was a few years late. But it doesn't matter, our country has a strong learning ability, and we still have a chance to catch up."
“The most critical thing is that robo-advisors face license, regulatory and other policy restrictions and can only provide investment advice and are not allowed to carry out discretionary management.
If you can’t get involved in the transaction process, your prospects will undoubtedly be much smaller.”
Zhang Yida felt a little regretful that both robo-advisory and P2P were running around without licenses and might be killed one day.
"Take your time! You can't rush this kind of thing." Tang Lin used to work on Wall Street, and he was also very emotional about the backwardness, or shortcomings, of the domestic trading market.
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