Not long ago, there was a story about a man who ran over a chicken with his car and was compensated for hundreds of yuan by the villagers. The villagers’ claim was very simple: chickens give birth to eggs and eggs, chickens give birth to endless children and grandchildren. Although the price of hens is outrageous, it contains some of the most primitive financial concepts. Today’s P2P platforms are doing the same thing: making money grow money.

The original idea of P2P platform is very simple. The platform acts as an intermediary to let those who can make money get money, and then distributes the earned money to themselves and borrowers in the form of interest. During this process, it is inevitable that a question arises: How can the people who can make money guarantee that investors will not lose money? Some rely on credit, some on property, and some on their cars to get the money investors have.

Unitrust Loan, as a P2P auto loan platform, provides such a platform for investors and borrowers by means of mortgage loan, pledge loan and other ways. The borrower provides his or her own car as the principal guarantee, and the platform acts as an intermediary and marks the valuation of the car, so that the borrower can raise the spare money of investors.

But since the launch in 2013, the development of trust easy credit has been tepid, in 2018 the number of monthly lending floating around in 400, five years, the cumulative lenders is only more than 30000 people, despite the interest rate is far higher than the average level of interest rates, but trust is easy to borrow the results obtained obviously run counter to the vision, including whether there is any problem.

Not enough to satisfy all the graduates, Uscis is less attractive to borrowers

Established in 2013, Unitrust has established its own financial service system to serve investors through the strength of the Internet, big data, cloud computing and other financial technologies since its launch. After the establishment of the rapid expansion, and two years later, the successful realization of A round of financing, raised more than 100 million capital, A sudden limelight. However, as time went by, Unitrust gradually lost its momentum.

Data show that since the beginning of 2018, the monthly average number of borrowers has fluctuated around 400, while the monthly average number of investors has reached as high as 3,000, and the number of borrowers and investors has reached 1 to 6. Hengxin Yidai platform is in a situation of more than enough to satisfy the insufficient graduates. Compared with the population ratio of nearly 1 to 1 on other platforms, such a huge disparity in the population ratio of UnitedLoan not only keeps a large amount of funds on the platform, but also reduces investors’ confidence in the platform. The main reason for the imbalance of population ratio is that it is not attractive enough to borrowers.

As the source of the P2P industry, lenders are very important for any P2P platform. Without lenders, P2P platforms will lose revenue and vitality. In order to attract borrowers to, trust easy loans with the threshold low, quick to account, not riding, variety, high credit, low interest rates six big advantage, through bank deposit tube, such as national level 3 certification system is the escort borrowers, lending to phase to attract more people to platform to borrow, but as the result, trust easy credit clearly didn’t produce too much attractive to lenders.

Through the comparison between P2P platforms, it can be seen that the main difference between Unitrust and many platforms lies in the bank depository management. Unlike other lending platforms that cooperate with traditional banks in depository management, unitrust cooperated with New net bank in a unique way. As the third Internet bank following Ali.com Bank and Tencent Weizhong Bank, Xinwang Bank is quite different from traditional banks in the management of traditional business and funds. But it is this distinction that has become a barrier for borrowers to choose a platform.

Because Banks depend on credit to dinner, credit based on a strong foundation, and part relies on the tradition of national Banks, new bank is a private enterprise as the background, whether in May set up time and reliability than traditional Banks, so people to cooperate and new bank trust easy credit to keep watching is taken for granted.

As the number of borrowers is too small, the number of bids issued by the platform is too small, which causes dissatisfaction among investors. Many investors in the platform, BBS said trust easy loans on display function of the automatic bidding problems existing queuing time is too long, in addition to short-term standard can be automatically in the short term investment, more than six months to arrange to more than a month, the trust is easy to borrow money on guard is serious, the longer it easy loss of investor confidence in the platform.

Not only does it make borrowers feel unattractive, but there are also two major drawbacks in serving investors.

The two major pains of Unitrust yidai: the risk of devaluation of collateral and the hidden worries about the renewal of the bid model

Trust easy loans to investors, launched four types of products are new, recommend, VIP, transfer of creditor’s rights investment model for investors to choose four, including new products as trust products easy credit platform to attract new investors, in terms of interest rates higher than other platforms for 2% of the new product, but due to the limit and the limit of time and so on reasons lead to new products while hot, But it is not the main business of the platform.

Unitrust focuses on recommended products and VIP products. By comparison, it can be seen that although recommended products have a higher interest rate than VIP products, most of the vehicles pledged by VIP products are famous brands with less depreciation space. Compared with most ordinary investors, They also bear the risk that the value of their vehicles will depreciate when they buy the Unitrust project.

Car value difficult also resulted in platform for valuation difficult, a car in the value of the price half a year ago, but after six months, may be another matter, valuation of auto test platform, also tested on much of the investors, compared with the theory of jin said two gold silver, car can’t like gold doesn’t care about the appearance, Unitcredit will not impound the mortgaged car while raising money for the borrower. In the future, the integrity platform of the vehicle cannot guarantee it. Once the vehicle is damaged and deformed, its value will be greatly reduced.

In addition, there are a lot of debt on trust easy credit transfer project, the data showed that platform nearly 70% of the investment products belong to creditor’s rights transfer project, excessive debt transfer that to a certain extent, reflects the investor’s choice intention, many investors tend to be short in the process of investment projects, and the platform borrowing too little number, As a result, the number of short-term targets is not as large as expected. In order to solve this situation, UnitedLoan also decomposes many long-term projects, resulting in a large number of renewed bids in short-term products.

There are three reasons for renewal of tender:

1. The platform disassembles long-term bid into short-term bid. As more investors prefer short-term returns in their investment choices, the platform changes the original long-term projects into the form of installment payment to meet the tastes of investors at different stages.

2. The term of long-term tender is long, which cannot meet the expectations of borrowers for quick fundraising. Due to the long term of the platform’s full bidding, the borrower does not need a large amount of capital at the first time, but may need part of it in the previous month and part in the next month. Therefore, the borrower borrows money by installments in the form of renewing the subject matter.

3. The borrower is unable to repay the loan and uses the renewal bid to postpone the repayment. This is a situation in which the most serious, lenders insolvent after arrival period, in order to prolong choose to renew the borrowing period, while the buffer to a certain extent, but after that lenders need to fill the holes are bigger, when borrowing to finally unable to repay, that there is no doubt that can cause a greater loss to investors and platforms.

When investors make investment, they have limited information and are not clear about the situation of the bid when they choose the target for renewal. Although the renewed bid meets investors’ demand for short-term targets to a certain extent, the hidden bad debt risk also makes investors feel uneasy when they choose. Once there is a large number of bad debts, the negative impact on the platform is inestimable. Therefore, excessive bid renewal is also one of the worries that Unicredit needs to solve urgently at present.

Unitrust Easy loan how steady progress

At this stage, the main problem is that the number of borrowers is too small, leading to the lack of choice in both the quantity and quality of the project, have to take the existing resources for processing to meet the taste of investors, but the smart housewife can not make bricks without rice, Hengxin Yidai want to steady progress, must do a few.

First, use big data and AI to analyze and meet the needs of specific investment groups. According to the platform operation report disclosed by Unitrust, the post-1970s and post-1980s generation are the two main user groups on the platform. At present, many online loan head platforms are making precise user positioning, such as screening the middle class.

Since the user group of Unitrust is mainly born in the 1970s and 1980s, unitrust can also use relevant technologies to find out the investment preferences of these users, so as to launch more personalized and customized products.

Second, stabilize investor returns. At present, there is a fierce reshuffle period under the dual pressure of supervision and competition. If Unitrust can stay stable, the returns of capital preservation investors will be equal to walking in front of a large number of platforms. Unitrust’s July lender earnings rose slightly from the previous month, but fell from a year earlier.

With the help of its risk control ability and operation ability, Unitcredit should continue to maintain this trend of steady progress, because to protect investor income is to maintain the reputation and development of the platform.

Third, moderately balance the interests of lenders and borrowers. No matter how high the yield, but too few people borrow money, and finally suffering is not the investors? Therefore, Unitcredit can consider a more compromise plan in attracting borrowers. Borrowers also need to borrow money according to the interest rate, which is too high to be prohibitive.

Therefore, UnitedLoan can flexibly use dynamic interest rate regulations to assist the sale of the target products. One thing is certain, when the interest rate drops, there will be more borrowers, and the money of lenders will not be on guard. Why not? Of course, the premise is that Hengxin Yidai needs to balance the interests of borrowers and lenders.

In general, trust easy loans after nearly five years of growth, has belongs to own a set of system about the survival and the success of the company the key lies in whether copies the experience, trust easy credit to continue to exist in the shuffle, good should also balance the relationship between the interests of borrowers and lenders, cannot fall but also need to pay attention to risk control ability of ascension.

Article/Liu Kuang public account, ID: Liukuang110, this article first leek finance