Zhuang Chuguang, CEO of Yimin Bank, the overseas sub-brand of Yimin Bank, and a group of employees were waiting early in the morning under the office building.
Yimin Wangjin acquired Gemstone Bank, and he was the happiest person.
Previously, some colleagues have been ridiculing "Yimin Bank". It is obviously a P2P company, but it insists on putting a premium on itself and calls it "Yimin Bank".
This time I can slap you in the face!
The headquarters has informed him that after the acquisition of Gemstone Bank is completed, it will be renamed "Yimin Bank" and the "Yimin bank" brand will be merged into the Yimin Bank system.
And he will serve as the first president of Yimin Bank!
A luxury motorcade slowly stopped under the office building. Zhuang Chuguang quickly tidied up his clothes and tie, making sure to present a good image to Mr. Zhang.
Zhang Yida stepped out of the car and immediately saw Zhuang Chuguang waiting here.
Zhang Yida smiled and patted his shoulder, "Chu Guang, you have worked so hard this year!"
“It’s not hard work, I’m very grateful to Mr. Zhang for his cultivation!”
This is true. Although Zhuang Chuguang has been stationed overseas for a long time, his options and salary are not lacking at all.
Imagine the life of senior foreign leaders in Shanghai in the 1990s. This is almost the kind of life Zhuang Chuguang is living now.
After exchanging a few words, Zhang Yida followed him into the office building.
It has been a long time since I visited Indonesia for inspection, and Zhang Yida discovered that the place has long been replaced by a new one.
With a three-story office building and thousands of employees, it can be considered a medium-to-large company in the domestic mutual financial field.
In Indonesia, this is a well-deserved hegemon!
“Loans exceed 100 million yuan in a single month”, which is already the highest level in Indonesia.
No matter how high it is, risk control standards will need to be relaxed.
Zhang Yida was silent in front of the report, and Zhuang Chuguang thought he was dissatisfied with the performance.
He quickly explained: "Mr. Zhang, this Indonesia is very different from China.
We found that it is most suitable for one person to lend US$75 to US$300. It not only has scale effect, but also complies with the principle of risk diversification...
To put it in the simplest terms, if we apply this standard, the scale of bad debts will be most controllable and the profit rate will be the highest!"
Zhang Yida is not dissatisfied with the financial report, but he is too satisfied.
It lends 100 million yuan every month with a daily interest rate of 0.8%. Even if the bad debt reaches 5%, the monthly gross profit is nearly 20 million yuan.
After deducting various costs such as salary costs and advertising costs, there is a net profit of almost 10 million yuan.
The loan scale of this business in Indonesia only accounts for 1% of the entire Yimin Wangjin Group, but its net profit can account for 4% of the entire group.
In other words, when lending in Indonesia, the net profit margin can be 4 times higher than in China.
The interest rate is not only 4 times higher!
The annualized interest rate in Indonesia is 292%, while that in China is 36%, a gap of almost 8 times.
This interest rate standard is also in compliance with the laws of both countries.
Now that you’re in Indonesia, you have to do as the locals do.
Although lowering interest rates can attract customers, it can also attract hatred and cannot maintain rapid expansion.
"You're not collecting money randomly, are you?"
Zhuang Chuguang quickly waved his hand, "Absolutely not! We have hired the top law firm in Indonesia as our company's legal advisor.
They helped us structure and improve all collection processes."
Zhang Yida nodded, what he fears most in this line of work is that things will go wrong due to collection.
"How about financial management? Can we still provide funds?"
Zhuang Chuguang smiled bitterly, shook his head, and sighed: "We Chinese people are still rich. Yimin Wangjin's monthly transaction volume is almost over 10 billion, right?"
"Last month, the monthly transaction volume reached 10 billion, surpassing Lufax and ranking first in the country."
Zhang Yida didn't know whether to cry or laugh. This size is basically no worse than some small and medium-sized city commercial banks.
But with such a large volume, it is very difficult to clear out.
He has already given instructions to Yimin Internet Finance to stop most advertising and user subsidies.
But I don’t know whether users value his “Zhang Yida” brand, or Yimin Wangjin, the number one P2P company with a market value of tens of billions of dollars.
The less subsidized you are, the more secure and secure users will feel!
Zhuang Chuguang said with a smile: "Which of the larger P2P companies in China does not have a monthly transaction volume of several billion?
Indonesia has been struggling for more than a year, with a monthly transaction volume of tens of millions.
Most of the funds for lending still come from our own funds."
Zhang Yida shook his head, "Our own funds are always limited, so we still have to use other people's money to make money."
"So the acquisition of Gem Bank is to learn from Home Credit?"
Zhang Yida laughed, Jiexin was also famous for its chicken thieves.
The boss made loans and became the richest man in the Czech Republic. When he came to China, he provided a model.
The funds are provided by Chinese banks, trusts and other financial institutions, and the employees are also Chinese. The big boss can just sit and count the money.
Except for the hard work in the first few years after entering China, trying to make connections here and there, after the later models were successfully implemented, I basically didn’t have too many worries.
Home Credit's entry into China is just like Indonesia's cash loan, which is about to enter on a large scale.
The slogan has only changed from "consumer finance" to "financial technology export".
However, the difference is that Gitzo is a big company after all, so it should look better so that it can last for a long time.
Most of these small companies in China are P2P and cash loan companies that cannot survive in China.
A swarm of swarms rushes in to make money however they want, without considering the long-term flow of water. They just grab a handful and leave. This can be called predatory lending.
In this case, Yimin bank will also be affected and impacted.
So Zhang Yida and Zhuang Chuguang chatted about the increasing number of Chinese faces in high-end office buildings in Jakarta in recent times.
Zhuang Chuguang became angry when he mentioned this, and said: "The arrival of this group of people has completely disrupted the market.
Damn it, you are not satisfied with the daily interest rate of 0.8%, and you have brought the domestic ones, with weekly interest rates of 20%, 30%, I think it will be over sooner or later."
"It's hard to calm down the desire!"
Zhang Yida sighed and added: "So we have to be prepared to face the impact.
The acquisition of Gem Bank can also be seen as a step to weather the storm."
Zhuang Chuguang was also very clear. He smiled and asked: "Mr. Zhang, do you mean to use capital costs to carry out dimensionality reduction?"
"Lower the dimension of wool. Have you looked at the products of Huabei, Borrow, Use, and Loan? Have they been impacted by domestic anti-aircraft artillery?"
Zhuang Cuguang nodded, "Three questions, one is risk control technology, another is capital cost, and the last one is user groups.
We are not bad at risk control technology, but Indonesia’s Internet infrastructure is too poor, data is not captured enough, and risk control is very difficult...
With Gem Bank, the gap in capital costs can be widened.
The last one is that the Indonesian natives are too lazy, and it is difficult to find middle-class people suitable for products such as Huabei and Yongbei. They start consuming as soon as their wages are paid..."
Zhang Yida was also scratching his head. The Chinese nation's virtue of being diligent and loving to save money has become a suitable soil for the development of consumer finance.
If you want to make money in these areas of Indonesia for a long time, you still have a long way to go!
It’s easy to just pick up a handful and leave. You don’t have to worry about risk control and long-term water flow. You can make profits as high as you want.
But Yimin Wangjin cannot be like this. Zhang Yida still wants to find a new path of banking + Internet finance.
Limited by national conditions, ethnic groups, and different economic levels, the model of domestic Internet banks cannot be directly copied.
Zhang Yida asked again: "How is the business going in Vietnam, the Philippines, Malaysia, and Thailand?"
"Each one sent a team there, which is just a mosquito leg. Vietnam, the most developed country, can only lend close to 10 million yuan in a single month."
Zhang Yida smiled bitterly, adding all these Southeast Asian countries together, the market is estimated to be less than one-tenth of the domestic market.
This is also the reason why many domestic companies prefer to focus on the domestic market and do not like to expand overseas.
The domestic market is large and familiar, so who is willing to take the risk and go overseas?
The current wave of cash loans going overseas is also because of the policies issued by the regulatory authorities, otherwise they would not have moved so easily.
"Okay, let's focus on the Indonesian market for the time being, and the other countries can be prioritized later."
Zhang Yida then talked about the next step of deepening cooperation between Yimin Bank and five companies: RPay, GoJek, Tokopedia, pak, and Traveloka.
“RPay can be regarded as domestic investment and financing, GoJek can be regarded as Didi, Tokopedia is Taobao, pak is Goudong, and Traveloka is Ctrip.
We have banks, payment tools, and scenarios, so we can shift more attention to scenario installments.
E-commerce installment, travel installment, travel installment...there are successful cases in China.
In addition, B-side small, medium and micro enterprises are also a direction that needs to be developed."
Zhuang Chuguang was a little surprised, "Is it difficult to do small and micro finance?"
Zhang Yida nodded, "I know this, but this is an exchange of conditions between us and the Indonesian Financial Supervisory Authority OJK.
They approved our acquisition of Gem Bank, and we are responsible for driving the small and micro economy."
Zhuang Chuguang understood, so he just said, how could a thief like Mr. Zhang do such thankless things?
"What about the specific direction?"
Zhang Yida said with a smile: "Like Ali, we also issue loan quotas to Taobao stores, and RPay's cooperative merchants can also grant quotas."
Zhuang Chuguang is very open, many things are indeed mature and can be done.
Zhang Yida communicated with Zhuang Chuguang for a while before leaving the company and preparing to rush to the shareholders' meeting of Yimin Bank.