Internet Finance: the Challenge of actively entering the Village needs to be faced

Under the upsurge of "Internet +", more and more Internet enterprises begin to "test the waters" in the field of rural finance. In the face of trillion market potential, rural Internet finance is currently facing many challenges in the fields of information equivalence, risk control and so on.

"entering the village and entering the household" is in the ascendant.

"this online loan is very good. I raised 2 million yuan for the development of seafood projects in half an hour. There is no need to worry about funds like before for future development." Fangchenggang City, Guangxi Dongxing Town Songbai Village, "seafood tycoon" Huang Ensheng said. Benefiting from the P2P network lending platform, Huang Ensheng raised 2 million yuan in development funds in only half an hour, and he and a dozen villagers have settled down the investment funds for the border seafood business project planned by him.

In order to make "Internet financial services, agriculture, rural areas and farmers" better landed and operable, the Guangxi Fangchenggang Municipal Government, together with Guangxi Financial Investment Group, has reached a cooperation with Guangzhou Securities Bank Internet Financial Information Service Co., Ltd. (Zhengqin Finance). This year, the P2P network lending platform has been successfully introduced into the rural areas of Fangchenggang City.

Internet finance, mobile banking and P2P online loans, which are popular in cities, have quickly become a "fashion topic" for villagers in Songbai Village on the border of Guangxi. Many farmers like Huang Ensheng rely on the online loan platform to solve the problem of development funds.

In recent years, rural Internet finance continues to explore and innovate, breaking through the traditional rural financial model. For example, Alibaba, JD.com, one mu of farmland Group and other enterprises have invested development projects and funds in rural areas.

Experts believe that rural areas will be a new market for the development of Internet finance. China has a large rural population, and the huge market, coupled with the lack of traditional financial services, provides room for the development of e-commerce and Internet finance. Statistics show that by the end of 2014, China's rural resident population was 620 million, and the number of rural Internet users exceeded 178 million.

"the new generation of farmers' awareness of Internet technology is gradually improving. Taobao Village and Taobao Town in some places are developing rapidly, and e-commerce has become a new economic form in rural areas." In the view of Chi Fulin, director of China (Hainan) Reform and Development Research Institute, rural Internet finance is now in the "tuyere" of great development.

Industry insiders believe that compared with traditional rural finance, the "complementary points" of Internet finance are obvious, and Internet finance has the advantages of low threshold and high efficiency. At the same time, cut the relevant services into all aspects of the agricultural industry chain, in order to alleviate the contradiction between financial demand and supply mismatch, and effectively improve the efficiency of financial allocation; in the diversification and personalization of customer service, Internet finance has advantages in rural areas, which is embodied in the beneficial supplement to the traditional financial model.

Unlimited potential, severe challenges.

Industry insiders believe that Internet finance provides a huge space for growth and revolution between the traditional balance of financial supply and demand. If a large number of financial demand in the field of "agriculture, rural areas and farmers" is released to a certain extent, it will be a market "blue ocean", but its development is facing challenges.

First, information asymmetry and lack of effective evaluation mechanism. Deng Jinhong, head of Beijing Yimu Tian Group, pointed out that the traditional trading of agricultural products is accustomed to the physical transaction mode of "payment on the one hand and delivery on the other". Because of the low degree of informationization of rural household assets, it is difficult for financial institutions to judge the real income of rural households and their actual capital consumption. this information asymmetry makes it difficult for the financial sector to lend to farmers. At the same time, the value of the same house and one mu of land varies greatly in different markets and different rural areas. at present, there are no professional institutions and evaluation standards to effectively and accurately evaluate the assets of farmers.

Second, the uncertainty of agricultural production and transactions is high, resulting in a high risk of bad debt rate. Deng Jinhong believes that Internet finance companies make use of the advantages of Internet technology to issue credit lines to individuals, small and micro enterprises, dealers, and so on, and provide extremely convenient credit services, but at present, the production of many agricultural products is still based on "relying on the sky." many farmers follow the trend of planting, or rely on experience, resulting in uncontrollable production and transactions that make it uncertain for them to repay their debts.

Third, the financial infrastructure is weak. Industry insiders say frankly that at present, the network of financial institutions in some rural areas is limited, infrastructure is weak, and financial services are insufficient, and the "lack of money" has become a realistic bottleneck for many farmers to explore entrepreneurship and develop e-commerce.

Fourth, the supervision is not perfect. Experts believe that many Internet financial companies have poured into the rural market, but at present, there is a lack of financial supervision in the Internet financial field to varying degrees, especially the P2P network bandwidth has not yet established clear and unified regulatory rules. some Internet financial institutions lack capital security and information security, and the internal problems in these industries need to be improved.

Risk prevention and control release vitality

Some people in the industry believe that in the face of market opportunities, we need to improve the mechanism in the future, actively promote the opening up of rural finance, take practical measures to prevent and control risks, and improve rural financial infrastructure to protect the efficient development of rural Internet finance.

First of all, establish a systematic "agriculture, rural areas and farmers" Internet financial system. Experts pointed out that a single policy can not solve the financial problems in rural areas, and rural areas have their own characteristics, so it is not suitable to simply transplant urban experience. They suggested that we should establish a financial service system in line with agricultural characteristics, rural reality and farmers' needs, improve the coverage and penetration of formal financial institutions in rural areas, and give full play to the positive role of new rural cooperative finance and microfinance.

Second, speed up market-oriented rural financial reform and innovation. "the most important thing for the development of rural Internet finance is the opening of the market." Chi Fulin said, "it is suggested to speed up the opening up of rural finance, encourage social capital to enter rural areas, provide new financial services for farmers by relying on the Internet and big data, and encourage traditional e-commerce to provide commodity services for rural areas. speed up product innovation and model innovation of Internet finance in rural areas, give full play to the outstanding advantages of diversification and personalization of Internet finance, and enrich the rural financial market."

In addition, it is necessary to improve the asset evaluation mechanism and Internet financial supervision mechanism, and strengthen the construction of the credit system and risk early warning. Experts suggest that while comprehensively carrying out the registration and issuance of land rights, we should explore the establishment of a price formation mechanism for the transfer of land contractual management rights and a price evaluation mechanism for crops on land. Through legislation to regulate the development of Internet finance, clarify the subject status, business category, development direction, regulatory system and other issues involved in the development of Internet finance, and systematically construct the relevant supporting legal system.

Huang Zhen, director of the Institute of Financial Law of the Central University of Finance and Economics, pointed out that the development of rural Internet finance should give full play to its advantages of backwardness, promote the integration of agricultural industrialization with the new generation of Internet technology, and form the big data system. We will promote the healthy and sound development of rural Internet finance through the establishment of big data's credit information, risk control and monitoring mechanism.

Industry insiders suggest that while improving rural financial service facilities, step up publicity, raise farmers' awareness of Internet finance, promote Internet finance to "walk into villages and households," and promote more rural areas to embark on the road of health and prosperity.