The project was established on November 9, 2018;

 

The system began trial operation on December 1, 2018;

 

Product launch on January 6, 2019;

 

There will be the first withdrawal user on January 9, 2019;

 

The balance of new loans exceeded 100 million yuan on March 5, 2019;

 

The product will be online on March 18, 2019.

 

On September 2, 2019, the personal business loan was officially launched;

 

The loan balance exceeded 1 billion on December 30, 2019;

 

The number of users exceeded 700,000 on January 7, 2020.

 

In more than 9 months, the balance exceeded 1 billion yuan from the product online, which was the result of binyin miaomiao loan of tianjin binhai rural commercial bank, a proprietary cash loan product of an agricultural commercial bank.

 

In the consumer finance industry as a whole, this is not an outstanding achievement.

 

But compared with consumer finance companies and private Banks that add billions of dollars to their balance of consumer financial products in a year, a small rural commercial bank's Internet lending capabilities are already outstanding.

 

Moreover, compared with some mid-tail licensed consumer finance companies, binyin miaomiao is still competitive.

 

For example, shangcheng consumer finance, which opened in August 2017, saw its balance increase by only 3.25 billion yuan in the first half of 2019. However, shengyinconsumer finance opened in February 2016, and by the end of June 2019, the loan balance was only 2.3707 billion yuan.

 

What's more, "bin Yin meow meow loan" is just a self-run cash loan product of an agricultural commercial bank.

 

 

Why can cross-regional operation?

 

Referring to rural commercial Banks, often by the "traditional", "conservative", "not cross-regional business" around the key words.

 

In particular, in January 2019, the circ issued the opinions on promoting rural commercial Banks to adhere to the positioning, strengthen governance and improve financial service capabilities (referred to as the opinions), which mentioned that "in principle, the development direction, strategic positioning and business focus of rural commercial Banks should not be located in counties (districts), and their businesses should not cross counties (districts).

 

This policy makes rural commercial bank to develop Internet consumer finance when prohibitive.

 

Why can tianjin binhai rural commercial bank develop Internet cash to borrow, can obtain a guest through Internet channel, and can extend a loan to different place user?

 

In fact, the circ's "opinions" stated at the end of the document, "this opinion applies to rural commercial Banks in counties and urban areas." This means that, except for county and urban rural commercial Banks, other rural commercial Banks are exempt.

 

After the "opinion" issued, goods yonhap news agency reported, according to a person close to regulators, large and medium-sized cities rural commercial bank temporarily is not affected by the "opinions" monitoring and assessment, and the bank here in the large and medium-sized cities, there are 23, in addition to the widely known municipality directly under the central government, cities under separate state planning of rural commercial Banks, there are several cities as rural commercial bank.

 

The source revealed 16 large and medium-sized cities rural commercial bank list, including: Beijing bank, Shanghai bank, the bank bank, bank of shenzhen, guangzhou, chengdu bank, bank of tianjin, wuhan bank in the bank, zhuhai, dongguan bank, shannon business bank, dalian, xiamen bank, bank of Qingdao, tianjin binhai bank, yingtan bank.

 

In the consumer financial market hot these years, although few rural commercial Banks in the cash lending business layout has outstanding achievements.

 

However, some of the exempted rural Banks are seeing a rise in Internet cash lending, according to new flow.

 

Some such as tianjin binhai rural commercial bank line self-run cash loan products, some with the head mutual gold platform to help loan business.

 

A loan agency practitioners to the new flow of finance and economics revealed that chongqing rural commercial bank, black river rural commercial bank, nine Taiwan rural commercial bank and other rural commercial Banks are more active bank financing side of the loan market.

 

Jiufu cooperated with chongqing rural commercial bank and paipaidai cooperated with heihe rural commercial bank.

 

Another head of the gold exchange platform also revealed that it is in the connection of the agricultural commercial bank funds, not all required to be only territorial users, but also some agricultural commercial bank cross-regional users can lend.

 

The high profit of cash loan, any player cannot bear to miss. The traditional and conservative rural commercial firm, but also out of the circle of one day.

 

 

Concerns about partnering with third-party fintech companies

 

New flow of finance and economics in August 2019, reported that "super dense city bank on-line proprietary 15 cash borrowed", in addition to articles in tianjin binhai bank launched "marina silver meow meow" loan, also have nantong bank "djembe borrowed" right away, changshu farming firm "Chang Yin meteor is borrowed", "but e is borrowed" east Parthenon firms, the greater hinggan mountains bank "big line of consumer credit" has been launched.

 

A person familiar with the situation said that many of the above rural commercial bank proprietary cash loan products, in fact, are with new hope jinke cooperation, by new hope jinke to provide the system.

 

The official website of new hope jinke shows that it mainly provides the overall solution of retail credit transformation for financial institutions. Its smart credit platform can not only obtain customers in batches in multiple scenes, but also provide all-online real-time risk control solutions, whole-process digital operation, high-concurrency and high-reliability systems, etc. The number of daily credit processing pens is over 1 million.

 

The person also said that new hope jinke to help rural commercial Banks to set up credit system, will also let related companies to help rural commercial Banks to get customers.

 

In July 2019, xinliujing learned that at that time, a number of third-party financial service companies in chengdu were helping to promote cash loan products of rural commercial Banks such as "binyin miaomiao loan".

 

Admittedly, unlike fintech companies, rural commercial Banks are not equipped with hundreds of technical teams and operation teams. Only cooperative third-party institutions can start the volume quickly in system development, scene acquisition and other aspects, which is also a common practice in the current consumer finance market.

 

However, it is also difficult to determine whether the rural commercial bank relies too much on the third party institutions for the key risk control links such as customer screening and credit granting.

 

Players who take risks are not uncommon.

 

"Although the regulators have repeatedly stressed that the core risk control of financial institutions cannot be outsourced, some rural commercial Banks still rely on the risk control model of third-party institutions when developing cash lending business due to the lack of detailed rules and enforcement constraints." "Said one banker.

 

 

The influence of rural commercial bank cash loan on consumer finance industry

 

Recently, some licensed consumer finance companies received a regulatory notice requiring them to lower their IRR rates to less than 24%, triggering a heated debate in the industry.

 

In fact, as shown by the agri-commercial Banks' efforts to make proprietary cash loans, Banks that are sinking and expanding their service boundaries have a tendency to compete with licensed consumer finance companies for customers.

 

As is known to all, some tail-licensed consumer finance companies have no core proprietary products at the beginning of the exhibition or even two years after the opening of the business. In addition to lending money to employees in the shareholder system, they rely on cooperation with microcredit, loan bai and other Internet cash loan products to start the volume.

 

However, in terms of cost of capital, licensed consumer finance companies go to a higher level than urban agribusiness.

 

After all, consumer finance companies are unable to absorb reserves, and there are certain thresholds for them to issue ABS, financial bonds or inter-bank borrowing to obtain funds, while agricultural commercial Banks can absorb reserves by themselves, which is a greater advantage.

 

A number of lending institutions told xinliujing, in the choice of capital channels, it must be preferred to choose the banking institutions, "the capital of small Banks will be cheaper than the consumer finance companies 1-2 points." A loan practitioner said.

 

Therefore, from another perspective, rural commercial Banks' cash lending, whether it is to export funds for loans or proprietary products, is more competitive for some licensed consumer finance companies.

 

Although only 23 rural commercial Banks are not subject to the restriction of "cross-regional operation" and can develop the Internet cash lending business, if these institutions make concerted efforts, it is not excluded that there will be similar head players like home credit, ma and zhao lian in the licensed consumer finance market to fight the market.

 

As more institutions enter the market, especially agribusiness firms with lower cost capital, there are undoubtedly more options for users.

 

Pressure down consumer financial market interest rates, it seems inevitable.