Money - hard currency; Internet - fast channel; they are born matches. When money meets the Internet, the whole new industry – Internet finance is generated. From the beginning when “Internet +” becomes a national concept, to the rising tide where traditional industry interacts closely with Internet, the Internet has witnessed rounds of heated financing boom. The vibrant Internet financing dynamics, after fierce competition, has ushered in a new qualifying session in which all industries are accelerating the progress of selection and elimination, steering full-geared towards an era of oligarchs.
In 2015, investors of all sectors felt optimistic about the development of Internet finance, and the whole industry was immersed in the hilarity of huge amount of financing, ushering in unprecedented opportunities for growth.
According to the latest data published by Jingbei Investment and Financing Research Center and Orange IT, with the full outburst of Internet finance in China, all kinds of emerging business modes of Internet finance represented by crowd funding, third-party payment and money management through Internet are surging forward vigorously. In 2015, 402 financing cases occurred in domestic Internet finance market, and 370 enterprises obtained financed funds, amounting to about RMB 94.4 billion. That means, in the past year of 2015, the financed amount in Internet finance industry has increased by nearly 10 times compared with that of 2014. The competition among investors for Internet finance is increasingly fierce.
According to the statistics of theWall Street Journal, the estimated value of Internet finance enterprises which are ranked among the first-tier of Internet finance of China in 2015 was USD 94.3 billion (equivalent to about 650 billion RMB) , taking up more than 60% of the total estimated value of the Internet finance industry. By conservative estimation, the overall estimated value of the TOP10 may exceed one trillion RMB in a year.
With the gradual cooling down of the Internet fervor, the era during which wealth is rapidly accumulated through estimated finance will become history in the following year. At the same time, the strict supervision standards on Internet finance are ready to play their role. As the industry is undergoing drastic changes, companies with sufficient capital accumulation and complete financing license will maintain their momentum, while some speculators will suffer increasingly deteriorated survival environment. The Internet finance will enter the oligarchy era led by Ant Financial, Suning Finance, JD Finance, LUFAX and other Internet finance tycoons, demonstrating obvious Matthew Effect.
Differentiated patterns of the Internet finance Big Three, who is the champion Internet
As to the layout of domestic Internet finance, the Internet finance related to e-commerce tycoons have more compelling advantages than those subordinated to financial institutions.
With rich background in e-commerce, the three experienced giants ---Ant Financial, Suning Finance and JD Finance ---have managed to forge Internet finance platforms utilizing their traffic and scene advantages. Comparing their APPs, you will find that they are generally similar in appearance but have unique characteristics and advantages in details; all of them have their own preponderant businesses and compete with each other in all directions through thorough business type layout. With the clear knowledge of the nature and development pattern of the Big Three, you will understand the future development of Internet finance.
The same industry with different origins；different positions and different models
Alibaba – Ant Financial:Ali consistently applies market sweep model. It expands market extensively and earns profits easily with the advantages of Alipay’s front-end gateway, however, it is poor in innovation. This model is a light model and also determined as an epitome of B2B model and B2C model.
Ant Financial is affiliated to Alibaba. Alibaba always has counterfeit product problem, for which it was severely criticized by Forbes Magazine and satirized by its sworn enemy -Liu Qiangdong, chairman of JD.
Suning-Suning Finance:Based on Suning’s O2O road in Internet retail, Suning Finance created a unique O2O road in finance through multiple channels and development in online and offline. Compared with Internet, retailing stores are more reliable owing to more need in Internet accumulation of fund and time.
Suning Finance is affiliated to Suning.As a traditional retail enterprise transforming to Internet finance area, Suning Finance follows the tenet of ‘Soundness , Safety and Trustworthiness’. Suning Finance adopts bank-level venture control system, formulates measures in technical specifications, venture control, development of safe products, fast compensation and payment and insurance claims,etc.,improves venture capability of venture prevention, and fully guarantees the fund safety of customers. Suning Finance succeeds in consumer loan, enterprise loan and crowd funding businesses.
JD- JD Finance:Positioned as a financial technical company, JD Finance has no competition with traditional banks, insurance companies and securities companies, and refuses to offer traditional financial products through Internet channels; instead, it has been highlighting the basic-level venture control and technology capability relying on big data and striving to become a technical platform to serve finance.
JD Finance is affiliated to JD.As a ‘Clunky Guy’, JD broke through under the containment of Ali. Although the front ends of JD Finance’s existing businesses, including ‘Baitiao’, ‘Crowd Funding’ and ‘Gangbeng’, seem similar to the peers in general, they have their own features.
The best form of competition: tripartite confrontation, where is the future?
Ant Financial’ tactics: To utilize a typical Chinese market butcher model traditionally called “a dog in the manger”, which means whatever the competence it has, the first thing is to grab the existing markets, earn more profits and accumulate more reserves so as to scare away competition with huge amount of money ,and finally beat them with scale advantage.
Suning Finance’tactics:To conquer one by one and start to dig “ditch” in case of winning, which is a typical way in the quest for more stability. To apply for full-license to guarantee quality and standard and impose bank-level venture control to guarantee safety of products. To make itself grow in a best manner and then attract customers with product advantages and oral spreading effect. To insist on the employment of Internet and keep persistent on the operation nature of finance industry.
JD Finance’s tactics:To invest huge amount of human resources and financial resources to research and develop venture control system and credit mechanism. To construct Brand-Commerce Ecosystem centered on the advantages of these products.
Without powerful financial ecological support and credit system, it is impossible to manipulate Internet finance well. With the introduction of various laws, regulations and measures, the Internet finance industry will compete in healthy and standard manners, and the Internet finance platform will thoroughly end the barbarous growth and usher in an oligarchy era under the strict supervision of relevant government authorities.