[TechCrunch Shanghai] The Big Money, Chinese Online Financial Market

Partner of ChinaGrowth Partner Wayne Shiong, Co-founder of Lending Club and Dianrong Soul Htite, CEO of Haodai Li Minshun, and Director of Financial Management Business Unit, Small and Micro Financial Services Group Zu Guoming took stage at TechCrunch Shanghai last week to discuss the latest trend of Chinese online financial market.

Li Mingshun proposed three keywords for online financial industry. 1) Inclusive financial system: P2P funding is an effective platform to solve the problems of micro and small enterprises that are in desperate need of capital. The number of such companies amounted to 60 million countrywide and 95% of them have never got any loans from traditional financial system. 2) Marketization: The development of online finance will redefine the concept of trust by the standard of user experiences. 3) Private Economy: Triggered by the development of private economy, big banks like Minsheng Bank, CMB, Ping’an all muscled into micro-enterprise financial sector.

Haodai, a credit product searching engine, has established cooperation with more than 5,000 financial institutions across over 100 domestic cities, Li added. When being asked about how to acquire customers, Li said Internet is a much effective means to acquire users than traditional methods.

China and U.S. are different in both culture and law system in terms of financial investment, but trust is a crucial factor for investors from both of the countries, aid Soul.

P2P lending comes under spot light as one of the development directions for financial innovation. But it is haunted by a raft of problems, such as lack of regulation and high default rate. Similar domestic companies include CreditEase, Ppdai, and Rong360, among others

Zu disclosed that Alibaba will launch more small and micro financial services in the future. These services are not limited to the fields of funds, banking and securities, but all the services related to the demands of customers and investors. The company will classify customers based on big data collected from various channels like AliPay and Taobao and provide financial services accordingly.