Recently, the State Council issued the Implementation Opinions on Promoting the High Quality Development of Inclusive Finance (hereinafter referred to as the "Opinions"), specifying that the high-quality inclusive financial system will be basically completed in the next five years. The opinion points out that we should improve the organizational system of multi-level inclusive financial institutions, highlight the professional and characteristic service functions of consumer finance companies, and improve the efficiency of inclusive financial services.
Consumer finance is a financial service industry that can directly touch the life of the public. At the beginning of its establishment, consumer finance companies aimed to serve the inclusive customer group outside the traditional banking system, focusing on the consumer credit needs of residents, and complement the development of traditional banks.
Since its establishment eight years ago, Instant Consumer Finance Co., Ltd. (hereinafter referred to as "Instant Consumer") has become one of the top consumer finance companies, giving full play to the advantages of national standard license plate and technological innovation, digging deep into the inclusive market with weak traditional financial will, coverage and ability, deepening the innovation of product and service models, and constantly improving the availability and convenience of inclusive finance. Eight years of technology driven development has made remarkable progress in digital transformation, consumer insurance standardization, rural revitalization, green development model, etc.
Constantly improve the service system and establish credit investigation for more than 8.5 million "white households"
At the beginning of the establishment of the consumer finance industry, what needs to be solved most is the significance of the existence of the industry? After 13 years of development, the data gives a detailed answer.
In the article "Leading the Standardized and Orderly Development of Consumer Finance Companies" published in March by the Non bank Department of the former China Banking and Insurance Regulatory Commission, it was pointed out that since the establishment of consumer finance companies in 2009, they have issued 7.17 trillion yuan of consumer loans and served 789 million customers in total. After the introduction of consumer financial products, the borrower's consumption amount increased by 16% to 30%, and the sales of cooperative merchants increased by about 40%. Over eight years of immediate consumption, accumulative consumer loans issued exceeded 900 billion yuan, registered users exceeded 180 million yuan, established credit investigation for more than 8.5 million credit "white households", and provided inclusive financial services.
The opinion points out that we should give better play to the role of local credit reporting platforms, improve the market-oriented operation model, and expand the coverage of information services for financial institutions and inclusive financial key groups in the region.
The comprehensive digital platform strategy of "scene+technology+openness" has been set up immediately for consumption, and financial services have been extended to cover more "white households" in credit reporting and "blind spots" in traditional banking services, which can play a positive role in promoting the construction of the overall credit system of the industry.
"The original purpose of the consumer finance pilot is to serve the long tail customers that banks dare not cover and solve the problem of their insufficient consumption ability." Cao Jingquan, secretary of the CPC Committee for consumption at once, said that the user portraits of immediate consumption are quite "sinking", and the customer group of its important consumer finance product "Anyi Flower" includes young people who have just entered the workplace and online taxi hailing drivers who have transformed from takeaway riders, There are self-employed owners who focus on entrepreneurship... Most of them are people who have demand for financial services and are eager for affordable, convenient and accessible financial services.
Facing 180 million long tail users, traditional small and medium-sized banks are unable to cover and serve hundreds of millions of users, which is the essential difference between consumer financial institutions and banks in the development of differentiated paths. Consumer financial companies rely more on technological innovation capabilities.
The opinion points out that we should create a healthy digital inclusive financial ecosystem. Support financial institutions to connect online scenes based on digital channels and provide high-quality inclusive financial services close to small and micro enterprises, "agriculture, rural areas and farmers", people's livelihood and other fields.
Wu Peng, senior director of the Research and Development Department of Instant Consumer Technology, said that behind the instant consumption, relying on the support of science and technology and digitalization, we should build a solid digital base, and use big data, new generation artificial intelligence and other technologies to provide more Pratt&Whitney customers with full line services, zero manual review, second level approval and other accessible, convenient and safe credit services.
Financial institutions should not only use technology to expand the coverage of inclusive groups, but also give clear guidance on the depth of service users: improve the level of financial services for farmers, returning groups and new agricultural operators, effectively meet the financial needs of new citizens such as agricultural transfer population, and continue to increase the number of first borrowers.
At present, immediate consumption will sink and expand inclusive financial business to third and fourth tier cities, counties and rural areas, with an average loan of about 3000 yuan, serving 33 million rural users, and a total transaction of 580 billion yuan; It serves 39 million county users, with a total transaction of 730 billion yuan.
In recent years, the financial needs of new citizens have also become a new topic in financial services. Immediately open multiple service portals on the consumption line to realize uninterrupted service for a large number of users. And cooperate with major network platforms to make up for the lack of digital consumption scenarios to meet the needs of new citizens in different fields. At the same time, through the EasyFlower Staging Mall, a number of theme marketing activities targeting new citizens were held in the fields of 3C digital, household products, rural revitalization products, and a total of 3.11 million new citizens were issued shopping coupons.
Self developed technology capability to improve the coverage and availability of inclusive finance
The construction of digital capability has been the consensus of the consumer finance industry. The wide application of big data, artificial intelligence and other technologies has effectively reduced the risk of consumer financial products and improved the coverage and availability of consumer finance.
The opinion also pointed out that financial institutions should be supported to deepen the use of Internet, big data, artificial intelligence, blockchain and other scientific and technological means, optimize the inclusive financial service model, improve the credit approval and risk management model, and improve the availability and quality of financial services such as small and micro enterprises, individual businesses, and agricultural entities.
Sun Lei, deputy general manager of consumption, said that in the decade from 2010 to 2020, the consumer financial market was in a period of rapid development, and the balance of short-term consumer credit increased more than ten times, which was much higher than the overall loan growth in the same period. Next, the consumer financial market will enter a relatively stable development period, and consumer finance companies will seek breakthrough in the stock game market. He believed that the consumer finance industry should be driven by science and technology, and focus on three aspects: differentiated positioning, digital construction, and business autonomy to promote high-quality development of inclusive finance.
Sun Lei said that digital capability is particularly reflected in digital risk control. Consumer finance companies use digital risk control technology to prevent and control the overall risk probability of credit asset pool and asset package, and follow the risk return model. In terms of risk control logic, it has obvious advantages to replace the experience judgment of risk control personnel with digital models. For the small and scattered credit business characteristics of consumer financial institutions, it is impossible to deal with tens of millions of customers and precise risk control without using digital means and taking a digital road.
Wu Peng said that instant consumption depends on the number of 300+user tags, more than 1000 sets of core technology systems, and 100000+derivative variables. The average daily decision-making is 53 billion times to make intelligent decisions, broaden the customer service radius, and achieve second level loans to meet users' demand for timely use of funds and improve the efficiency of financial services.
Not long ago, we immediately consumed the self-developed large model "Tianjing", put AIGC technology into practical use, and enabled financial business links such as intelligent marketing and intelligent customer service. Tianjing big model enables digital finance with AI technology, based on the basic advantages of full closed loop of data, computing power, algorithms and scenarios, to promote the digital product iteration in financial scenarios such as data intelligence, multimodal interaction, real-time human-computer decision-making, and truly achieve data driven business.
Up to now, immediate consumption has cumulatively invested 3.3 billion yuan in scientific research and development, and applied for more than 1400 invention patents. In the Report on Patents and Technology Research and Development of Chinese Consumer Financial Institutions (2023) released by Onethink Tank, the number of patents consumed immediately accounted for 48.8% of the total industry, ranking first in the industry.
Integrating ESG related concepts into consumer protection and rural revitalization
The opinion also proposed that green and low-carbon development goals should be integrated into the services in the key areas of inclusive finance.
At this stage, some consumer finance institutions have begun to realize that consumer finance, CITIC consumer finance and others have been exploring ESG, gradually starting to carry out ESG layout in rural revitalization, inclusive finance, consumer insurance and other fields, and trying to tap the consumption potential of new scenes.
Immediately consume and continuously release the Corporate Social Responsibility (ESG) Report for nearly two years. In the 2023 report, it was pointed out that the innovation model of "science and technology+finance+carbon neutrality" should be created by immediate consumption. Based on self research in science and technology, the technology base should be forged in big data, blockchain, biometrics, artificial intelligence, cloud computing and other fields, and the engine effect should be brought into play to drive intelligent business decision-making and help finance more flexibly and efficiently "go into battle light", In order to achieve different degrees of carbon reduction in the whole process of financial services.
In terms of rural revitalization, the opinion points out that financial support for rural revitalization is more powerful. Immediately, consumer finance will take science and technology as the support to promote the digital transformation and upgrading of rural industries - establish a rural revitalization digital empowerment center, promote the application of big data and AI in environmental monitoring, breeding industry, product traceability and other fields, and actively practice public welfare activities.
Immediately consume and build a "rich and intelligent breeding" big data intelligent breeding common prosperity platform to enable traditional chicken breeding. At present, some farmers in Chongqing Yubei District, Tongnan District, Dianjiang County, Shizhu County, and Lueyang County, Shaanxi Province have been empowered, helping to reduce the comprehensive breeding cost by about 15% and increase farmers' income by more than 20%. In view of the financing difficulties of free range chicken breeding enterprises, we have explored a closed-loop financial innovation model of "financial technology+insurance+bank" with financial technology innovation as the core.
In terms of consumer protection, the opinion points out that the financial consumer education and protection mechanism is more perfect. The popularization of financial knowledge has improved significantly, and the ability of the people and business entities to choose suitable financial products and the awareness of risk responsibility have increased significantly.
Immediately, consumer finance is committed to establishing a sound consumer insurance system and mechanism, and has established a top-down consumer insurance management system consisting of the board of directors, the board of supervisors, the consumer insurance committee and senior management. Immediate consumption mainly took measures such as consolidating the system foundation, strengthening the control of consumer protection process, strengthening customer complaint management, compacting consumer protection assessment, and innovating consumer protection publicity and education to effectively implement consumer protection.
To be specific, consumers will immediately carry out a series of publicity and education activities relying on the rich experience of online and offline propaganda and education. Open official public channels such as official website, APP, official WeChat official account online, and teach through multimedia forms such as comics, videos, posters, etc. Offline financial knowledge publicity and education for consumers are comprehensively and multi-dimensionally covered through linking business districts, radio stations, universities, primary and secondary schools, residential communities, elderly care service centers, villages, construction sites and other areas.
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