There has been no shortage of domestic fintech companies rushing to IPO in the US in recent years, but one company stands out on this year’s race list. All along, qudian, PpDAI, Xiaoying Technology and other companies that have been successfully listed or many fintech companies such as Weidai.com and Tianyi Finance that are applying for listing almost all provide cash loan or consumption installment business to C-end users. Pinti, an enterprise services fintech company that focuses on TO-B solutions, is the exception.
As one of the few b-end service institutions in China, Pinti provides a wealth of technology and financial tools to quickly build system services for customers and create end-to-end solutions, mainly for small and micro institutions and commercial institutions. Pinti’s application for listing in the United States will make the development of the enterprise public, in fact, it also provides a reference sample for the fintech industry TO B model. In the B – end market, product titanium in front of both joy and bumpy.
Direct financial technology B – end market, product titanium unusual road
Under the background of strong regulation, the development of fintech TO C-end business is restricted by factors such as deleveraging, and the once savage growth of c-end market has come TO an end. With the clear boundary between financial institutions and technology, fintech has entered a new stage of differentiation. Financial institutions that previously served the C-end market had to move to the B-end market for compliance. On the other hand, the C-end market is nearly saturated, and many organizations are turning to new battlefields in search of new life. Under the influence of a variety of factors, the industry from c-end market to B-end market has become a development trend.
When the new pattern appears, there are not only a lot of eager to try the brave, but also with a keen sense of market smell, has been in the market layout of the pioneers, product titanium is one of them. Pinti is one of the few domestic financial institutions to start b-end market, in order to better develop b-end market, it has made a lot of preparations and efforts.
First, the core of the b-end and c-end markets are not the same. C-end market is mainly for individuals, involving less content, the development of business is mainly to burn money to spell flow, and b-end market involves more complex content, the development of market business not only need to burn money to spell flow, more important is the competition of technology. In order to better serve relevant enterprises and strengthen the competitiveness of enterprises in the B-end market, Pinti has increased its investment in cloud computing, big data, artificial intelligence and other emerging technologies. According to the prospectus, Pinti’s RESEARCH and development expenses accounted for 12% in 2017, matching the proportion of research and development expenses of a typical HIGH-TECH company in the United States.
Secondly, Pinti takes online as the main, offline as the auxiliary promotion way, through docking with a large number of platforms, the customer flow into its own platform. Under the correct marketing strategy deployment, effectively integrated the long tail flow, product titanium has thus obtained a large number of flow customer groups. At present, pinti has cooperated with 260 online and offline enterprises, including 179 commercial institutions and 81 financial institutions, covering online tourism, e-commerce, securities brokerages, insurance companies and other fields.
In addition, after two years of independent operation of Pinti, on June 5 this year announced the completion of a total of 103 million USD series of financing, investors including Sina, Shunwei Capital, Xijin Capital and so on. After this financing, product titanium will continue to strengthen the investment in science and technology research and development, risk control and other fields, further expand the advantages of the enterprise, strengthen the strategic layout of small and medium-sized financial institutions. At the same time, Pinti will carry out comprehensive strategic cooperation with Sina in terms of traffic, data and brand, and introduce more institutional customers by taking advantage of Sina’s own traffic advantages and influence.
It can be seen that product titanium through the “online + offline” marketing model, has successfully opened its own flow entrance. At the same time, technology investment also drives enterprises to break through the barriers of b-end market. Now, product titanium has been a good development, and cut a figure in the peer. But throughout the whole market, no enterprise can always go smoothly, product titanium is so. After passing the market multiple examination, its inadequacies are exposed one after another.
Internal and external double attack, product titanium alternative road is not easy to go
Although Pinti has made some achievements in the B-end market of fintech, and has formed its own ecological chain, its future development path is still difficult. The inherent limitations of b-end mode and the increasing competitive pressure from the outside make Pinti move forward in the competition for market share.
First, Pinti connects the two ends mainly through the technology platform, one end is a commercial institution with scenes and flow, the other end is a financial institution with capital, its role positioning is the technology platform. This also means that in order TO drive the further development of TO B mode, pinti needs TO invest more funds TO improve the platform construction of Pinti. For example, the construction of IT system, the docking of banking system, the introduction of high-quality composite talents, etc., these high-cost projects are rigid expenditures for the sustainable development of enterprises, and also one of the obstacles to slow down the development speed of enterprises.
In addition, product titanium own business model so that it has a strong dependence on big customers. Pinti’s top five business partners accounted for 70.2%, 65.1% and 55.3% of total revenue in 2016, 2017 and the first three months of 2018, respectively, according to the prospectus. Among them, the revenue from cooperation with Qunar accounts for 55.8%, 46.2% and 27.2% respectively, and Qunar is the largest revenue source of finished titanium. But Pinti is not the only option for these partners, and these business partners have short contracts with Pinti. When the deadline expires or the partnership deteriorates, it is likely to have a huge adverse impact on the business of PTI.
Second, the fintech market is facing new changes, and the b-end market, still a blue sea, has become a new battleground. At present, the competition in the market is becoming increasingly fierce. Internet giants represented by Ant Financial, Tencent and JINGdong have entered the market one after another. MinTech and other new financial technology service providers, which have already entered the market, have arranged their troops to strengthen and consolidate the city. Some P2P also followed the trend and began to transform. As various players see the market, in order to win a new spoon, have joined the queue of b-end service market share of the beach fintech, the competitive pressure of Pinti is increasing. How to enrich service modules, simplify solutions, diversify products and effectively manage risks have become the urgent problems for enterprises to solve.
Third, the relevant partners in the process of receiving the service of pinti, will have mastered some business skills, accumulated to a certain extent, customers in order to save unnecessary costs in the middle, will choose to jump or their own operation of business, pinti is very likely to be abandoned. In this way, PTI is faced with the risk of partners bypassing the self-built system of the enterprise. This risk will also increase the explosion rate of the enterprise, and the relevant staff will have a huge sense of gap due to the rise of the explosion rate. All these are not conducive to the maintenance and construction of the enthusiasm of the enterprise team, and the subsequent development of the enterprise will also be affected.
In addition, technology export was once considered a “thankless” business, and so far few fintech companies have made profits on scale. Although product titanium after several years of deep cultivation, in the first half of this year finally achieved profit, but at present, the domestic product titanium this connection between commercial institutions and financial institutions at both ends of the model is not common, there is no related cases for reference. The TO B business model of Pinti, which lacks previous experience, is also in the exploration stage, and its success also needs TO be considered.
With the development of The Times, market changes and the increase of participants, the b-end market of fintech has caused a new round of fierce battles. Now, although Pinti can be regarded as one of the frontrunners of the new business model, but due to multiple attacks from the internal and external, its development speed will also be slowed down. So, product titanium how to do to speed up, stand firm, and keep the “front-runner” identity?
Product titanium how to keep the “front-runner” identity?
In On the Origin of Species, Charles Darwin wrote that the species that survive are neither the strongest nor the smartest, but those best able to adapt to change. The same applies to the fintech market. Throughout the development of the whole market, eliminated enterprises are often those difficult to adapt to market changes in the enterprise. Therefore, in order to achieve sustainable development, pinti should not only solve its own problems and enhance its survival ability, but also learn to avoid danger and reduce the possibility of being eliminated.
On the one hand, ant Financial, JINGdong, Tencent and many other commercial giants are grabbing the share of the B-end market, pinti wants to occupy a place in the increasingly fierce b-end service market of financial technology, it must learn to play to its strengths and avoid its weaknesses. Avoid direct confrontation with the giants and limit the damage. After all, financial markets are non-monopolies, not one or a few firms that can be swallowed up. Therefore, Pinti needs to find a path suitable for itself. Although it cannot turn its own scenes, traffic and technology into assets and export them to financial institutions like giant enterprises, it can use enterprises with multiple traffic, such as Sina, to open up multiple access to customers, so as to take market share.
At the same time, many enterprises have shifted to the enterprise end from “racing in the enclosure”, and the white-hot b-end market competition and product diversification have also evolved into a test to expand customers and comprehensive operation ability. Product titanium not only to the offline and offline services to effectively link up, but also the two flow entry into a new source of trading volume, through improving customer adhesion to strengthen the competitiveness of the enterprise. It is also necessary to strengthen the research and development of basic technology and enhance the professionalism of the enterprise, so that the sample titanium can meet the new challenges more calmly.
On the other hand, product titanium to in-depth understanding of b-end business, multi-faceted understanding of the development needs of each enterprise team, better adapt to the changes in the market. In addition to in-depth understanding of the business model of the enterprise, it can concentrate resources according to a certain demand of the business, in-depth research and application in a technology segment, and take the lead in a segment of the market. In this way, we can improve our own advantages and better defend our position in the b-end market.
In addition, b-end market is more about providing comprehensive solutions for customers, involving multiple links and complicated content. The future development of the market will be platform-based and ecological. Therefore, product titanium to improve the relevant infrastructure as soon as possible, together with a number of platforms, to establish a stable multilateral ecological system, in order to ensure the efficiency and security of enterprise services, to bring better experience to customers.
In any case, product titanium first in the B end of the market to go around, to provide a certain reference value for domestic enterprises, but also for the financial technology of a good start. As one of the leaders of the new model in China, Pinti did not choose to stick to conventions but to have the courage to break through, which is worth learning. But the product titanium hidden diseases still exist, enterprises want to have better development also need to disperse the fog, to solve these hidden diseases, only in this way, enterprises can complete the final sprint to the US IPO, open up a new world of their own.
Article/Liu Kuang public account, ID: Liukuang110, this article first leek finance