Thinking of this, Chen Feng shook his head and picked up another research report. This is the key point.

At the end of 2019, there were about 350 million domestic credit card holders, and during the same period, the central bank had a credit record of about 550 million. The gap of 200 million that was not covered by credit cards was being filled by representative consumer loan products such as Huabei, Renxingfu, and Baitiao.

In the past two years, e-commerce consumer finance products have successively launched interest-free functions to empower shopping and consumption. It not only allows people who cannot apply for credit cards to enjoy 30-day interest-free services, but also captured a large number of cardholders through 6-term interest-free, 12-term interest-free, and 24-term interest-free promotions.

Various Huabeis complement each other with credit card customers, complement each other's scenarios, and are at peace. But like the evolution logic of any business story, the needs of survival and development will always make the two sides meet, overlap, and even close contact...

Bank vs Internet giants,

It's about to break out!

Just like this, the customer groups of both sides are becoming more and more overlapping.

In the past, credit cards were full-scene payment tools, while e-commerce installment products were limited to the e-commerce ecosystem. However, with the breaking of payment tools such as Alipay and Suning Payment, e-commerce installment products have broken through the shackles of use scenarios.

For example, in addition to relying on Alipay, Huabei can also independently access various consumption scenarios through installment plug-ins and API plug-ins. Judging from the display priority and promotional discount subsidies, it seems to be more powerful than credit cards?

What makes me feel most amazing is: The "Announcement on Credit Card Repayment Service Rules", which actually directly imposes a handling fee on credit card repayment!

It can not only reduce it, but also consolidate the closed loop of funds, and encourage users to use the money from other platforms to repay credit cards, and Alipay's money remains in Alipay.

But the most powerful killer move is: indirectly disintegrate users’ credit card payment habits!

Because 90% of the 1990s spend money using Huabei, it is not because they have no money, but because they want to use the interest-free period to save money.

The funds in Yu'ebao can afford to pay for an order of 1,000, but choose to pay with Huabei interest-free and repay the money after 30 days. During this period, the money is lying in Yu'ebao and earning interest of 2.47 yuan.

It seems that 2.47 yuan is a mosquito leg, but the consumption characteristics of post-90s generation are always that milk tea costs 30 yuan and buys it as soon as you say it, and the shipping fee of 5 yuan is firmly resisted!

Although the financial management interest is small, they care.

If you still charge a handling fee on your credit card, in order to save the handling fee, you might as well just use Huabei.

Many people will say: Bank apps and cloud flash payment apps can all repay for free.

The problem is that the change born in the 1990s is in Yu'ebao. If you repay the loan through the bank app, you must first withdraw the money to the bank card. Withdrawal also requires a handling fee.

Credit card repayment charges, and users complained repeatedly. It seemed that the payment giant sold a flaw to the bank app, but in fact it made a beautiful blow to reshape users' interest-free payment habits.

It seems weak, but has a profound impact.

Awesome!

Chen Feng sighed, in his opinion, finance can only be described in four words:

Sparkling fire!

After experiencing the baptism of consumer finance, borrowers have become more rational. High-interest loans have become the biggest evil, with 550 million borrowers flocking to medium- and low-interest loan products, with interest space narrowing, homogeneity intensifying, and competition unprecedentedly fierce.

The outstanding manifestation is that it is becoming increasingly difficult to acquire new customers, and the leading platforms have continuously strengthened the operation of existing users and pursued the re-borrow rate.

Look at 360 Finance, the rebate rate has risen to 84.9% in the first quarter of this year, almost becoming a closed system lacking fresh blood injection.

The more you rely on existing users, the more you rely on user operations.

A complete vicious cycle.

Of course, giants are not stupid. They all have self-rescue and promote new functions. Installment malls have become standard. Some institutions continue to invest, such as postal storage canteens, which have played the "subsidy, discount" card and vigorously supported self-operated shopping scenarios...

Rate cuts and increase amounts have become standard, and re-borrows enjoy interest rate discounts can be quickly increased in installments. Some institutions have spared no effort to create opportunities for users to increase amounts. For example, Alipay can freeze Yu'ebao to increase the amount for Huabei...

We spare no effort in building our own scenes. In addition to the two major scenarios of China Merchants Bank app, meal tickets and movie tickets, the content community is also doing a very exciting and exciting way...

Test the paid membership system, similar to paid members on e-commerce platforms, borrowers can easily earn membership fees, provided that they borrow more and keep sticky...

Unfortunately, many credit card products, although they are affiliated with payment tools, do not provide interest-free periods, and are still in an interest-paying consumption model. They cannot compete head-on with credit cards in terms of experience.

Only two giants have the confidence to fight with the bank.

wrong,

Lao Ma Xiaoma is a person who is qualified to open a bank!

To be fair, many people suggest more than once that million winners will be put into finance, especially the so-called student loans to help people in need to provide borrowing services, but...

All were rejected by themselves.

Funding is a problem, and the biggest risk comes from policy supervision. Tianlei is not a joke.

The market value of a million winner will immediately exceed 50 billion US dollars. If you keep it stable, you will definitely exceed 100 billion US dollars in three years. Why take the risk?

What's more, there are two aces in hand, including Luxury Time and Fashionista. They are ready to go public. At this time, stability is the bottom line.

Now that we stand at a height, we can see many problems more deeply, and the battle between giants is everywhere.

As strong as Alibaba and Tencent, they dare not take it lightly. They spend money desperately and invest in shares. They spend money every day to sink, for fear that one will be careless and the other will pop up again.

It really makes me feel like sitting in the mountains and watching tiger fights.

Especially for those consumer loan giants that lack scenarios, in order to activate existing users, it is only a matter of time before they can add interest-free functions to the already launched credit card-like products in order to activate existing users.

Sparks of fire have spread, and the curtain has been opened for consumer loan giants to hunt for credit cards.

But the banking masters have not yet realized the arrival of competition and are actually busy with strategic contraction?

The reason behind this is that I am vigilant about the bad debt rate, which makes the deadbeat more and more professional.

The second is to consolidate existing users. During the period of rapid growth, good melons and bad fruits are picked up in the basket, and what they are pursuing is scale.

During the period of solidification of the foundation, we must pick out the rotten fruits and pursue quality.

The market is always a carrot and a pit. Your bank is retreating, and others are rushing forward desperately.

In the eyes of both parties, you laughed at me as a silly man and became a buyer. I laughed at you as being too conservative and gave in to the market.

One focuses on risks and the other focuses on development. Both parties have solid reasons, but if they act against each other, there will always be one party making mistakes.

Others laugh at me as crazy,

I laughed at others for not seeing through it!

With the warm upgrades again and again, the four recognized god cards in the world have successively stepped down from the altar: the rights and interests have shrunk, the threshold has been increased, and the holding experience has become worse and worse.

Don't worry, when banks realize the competition among Internet finance giants, they will definitely increase their investment, and those magic cards still have a chance to become arrogant again.

Every traditional industry is worth reworking with the Internet. Change management has been done, consumer loans have been done, and next, it’s the turn of credit cards?
Chapter completed!