Both trust institutions and commercial banks have jumped into consumer finance in recent years, but both are facing growth challenges. A think tank’s latest research report “The Road to Smart Banking in the Era of Technology and Finance” points out that the rise of fintech companies has brought challenges to banks, and the challenges are global. “As can be seen from the statements of more than 200 listed small and medium-sized banks, if banks do not actively respond to the whole digitalization wave, their net return on assets will fall to 5.2 percent.”

There are two reasons behind the decline in earnings of traditional financial institutions

The decline in income of traditional financial institutions is mainly affected by two factors: customer acquisition and technology.

First, credit card is an important channel of bank consumer finance. At present, the competition of credit card has been white-hot and quite fierce. Most of the customers are offline and online, and the cost is high. In the era of “net generation”, there are few self-owned customer acquisition scenarios on the bank line, and the ability of self-owned customer acquisition is relatively poor, facing the customer acquisition problem.

Second, in consumer finance for individuals, the risk control of traditional institutions is often not as good as the “customer understanding” of Internet giants with multi-dimensional and continuously growing databases, and the exploration of ARTIFICIAL intelligence + risk control is also slower than that of Internet enterprises.

Duxiaoman and other fintech companies have excellent fintech capabilities and diversified consumption scenarios, which can complement the scenarios and technical shortcomings of financial institutions and help financial institutions enhance their commercial value. At present, more and more banks and trust institutions are choosing to conduct financial cooperation with Duxiaoman through the consumer credit open platform “Yunfan”. It is reported that in the past two years, Duxiaoman has cooperated with more than 50 financial institutions, including Bank of Nanjing, Baixin Bank and Jining Bank, to provide consumer financial services. The cumulative loan has exceeded 250 billion yuan, and the non-performing rate is far lower than the industry average.

99 percent untapped, Du Xiaoman opened its mine to financial institutions

At baidu’s world Conference on November 1, Zhu Guang, CEO of Duxiaoman, revealed that even though it lends 1 billion yuan a day, it only meets less than 1% of the demand in the consumer finance scene, leaving 99% of the room to be tapped. Duxiaoman invites financial institutions to cooperate with each other in mining gold mines through its cooperation advantages in scene, technology and commercial value.

Scene diversification

Baidu search involves a very wide range of user groups, the consumption scene is very rich. According to the report, every day through Baidu search financial information times reached more than 35 million, not only hundreds of millions of users in the search and education, decoration, tourism and other related consumption information, but also a large number of small and micro enterprises in the query business information. There are also huge financial demands hidden behind the huge search information, such as education, tourism, 3C product consumption, home decoration and so on. Moreover, once the consumption closed loop is formed, the scene will have a very high barrier advantage.

The diversification of consumption scenarios also means that users’ financial needs are extremely personalized. It is difficult to cover all consumption scenarios in a short period of time only by duxiaoman’s own business. Generally speaking, Duxiaoman has mines at home, and one person can’t mine them all. It is reported that duxiaoman’s earliest education sector has served more than 1.5 million people, but it is just a drop in the bucket when viewed from the whole search scene. According to the introduction, education credit accounts for only 3% of the daily loan volume.

Technical intelligence

In terms of risk control ability, banks and trust institutions have the most say, while in terms of ARTIFICIAL intelligence technology, Baidu, which is in the forefront of the industry, has the most say. The integration of the two can achieve complementarity. As the first graduate of Baidu ARTIFICIAL Intelligence, Du Xiaoman’s research on artificial intelligence + finance has entered the stage of large-scale application and has accumulated a lot of experience in practical application.

During the forum, Duxiaoman released the consumer credit platform “Yunfan 2.0+”, which carried out comprehensive technical upgrading around the four chains of “intelligent customer acquisition, big data risk control, customer operation and post-loan management”. According to reports, in terms of intelligent customer acquisition, Duxiaoman Finance has 300 million + users who can be trusted, and the expansion accuracy rate of certain groups can reach more than 90%; In terms of big data risk control, risk differentiation can be increased by 15% on the basis of credit investigation data of the Central Bank. Multi-head monitoring system can accurately warn risks one month in advance and dynamically monitor changes in credit levels in different regions and industries. In terms of customer management, we can grasp user demand and market supply at any time and adjust the amount and price effectively in real time. In terms of efficiency improvement, the recall rate of intelligent robots in the application stage of electric sales is close to the artificial level, but the cost is only 1% of the artificial level, and the collection rate of intelligent robots can be increased by more than 5%.

Commercial value is quickly realized

At the Baidu World Conference, Zhu Guang also pointed out that 2019 will be the golden period of consumer finance, and the demand for consumer finance in Baidu’s search ecosystem is still growing and overflowing, so more partners are needed to participate and share this financial treasure mine. So far, Duxiaoman has helped financial institutions earn more than 5 billion yuan in interest income.

After sharing the rich scenes and artificial intelligence technology of Duxiaoman with financial institutions cooperating with Yunfan platform, it can help many financial institutions to match the target users most in line with their needs, improve their business strategies and intelligent risk control technology, and jointly operate the whole user life cycle from credit issuance and use to collection and wake-up.

New engine of consumption, finance + technology = new driving force of domestic demand

China’s economic growth model is shifting to one driven by domestic demand. A month ago, the state issued an official document, proposing to “accelerate consumer credit management model and product innovation, increase support for key consumer areas, and constantly improve the quality and efficiency of consumer financial services.” In the future, consumption will become the new engine of China’s economic growth.

On the one hand, statistics show that shenzhen alone has 1.6 million small and micro enterprises, accounting for 99.7% of the total number of enterprises in the city, and it is still growing at an average annual rate of 20%. Although these large number of small and micro enterprises are regarded as the capillaries of the national economy, they have been facing financing problems.

Degree of grain full cooperation with commercial Banks to help reduce financial threshold, pratt &whitney financial coverage to a large number of small micro enterprises, improve small micro enterprise credit loan problems, boost small micro enterprise growth, provide strong support for the development of the real economy, there are remarkable success: degree of grain full, according to hoist the platform is 40% small business owners.

On the other hand, domestic demand is becoming a good prescription to overcome the downward pressure on the economy. Policies are also supporting and encouraging the development of consumer finance. Duomo and more financial institutions can promote the prosperity of the consumer finance industry, so as to further stimulate domestic consumption and promote economic development.

Generally speaking, the development of consumer finance plays a crucial role in stimulating domestic demand. With rich consumption scenes and advanced fintech capabilities, Duxiaoman will open up its financial treasure mines and serve consumers and small and micro business owners together with financial institutions. It will help financial institutions tap potential target users from consumption scenes, enhance business value and comprehensively promote domestic consumption economy.

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