Recently, according to relevant media reports, ant group plans to establish a consumer finance company with Nanyang Commercial Bank, Beida qianfang technology and Ningde times in the next few weeks. The company will be incorporated in Chongqing with a registered capital of 8 billion yuan. In recent years, with the development of consumer finance, many banks and financial technology companies have entered the consumer finance industry again and obtained relevant licenses. On August 19, the China Banking Association issued the development report of China Consumer Finance Corporation (2020). According to the report, from the overall trend of consumer finance, the overall growth of the industry has slowed down, but it still remains at a relatively high level; the customer base continues to expand, and the number of young consumers is increasing, and they are constantly moving to the third and fourth tier cities; at the same time, the market competition is intensifying, and consumer finance is gradually transferred from the blue ocean market to the Red Sea market. < / P > < p > in 2019, the growth of consumer finance industry will slow down, but it will still maintain a relatively high growth rate. The industry background faced by consumer finance companies is full of opportunities. < p > < p > data in the past three years show that the growth rate of generalized consumer finance balance has continued to decline. Among them, the growth rate in 2019 was 15.92%, which continued to decline by more than 8% compared with that in 2018, but still higher than the average growth rate of other types of loans such as personal loans. < / P > < p > in 2019, the overall growth rate of consumer finance companies will slow down, but it will remain at a relatively high level. By the end of 2019, the asset scale of consumer finance companies had reached 498.807 billion yuan, an increase of 28.67% over the previous year, and the loan balance was 472.293 billion yuan, an increase of 30.5% over the previous year. In addition, consumer finance companies continue to strengthen the management and disposal of assets. As of the release of the report, nearly half of the institutions have adjusted the standard of assets classified as non-performing from 90 days overdue to 60 days, and the industry average provision coverage rate has increased to 186.34%. According to the non-performing rate data of direct response index of risk cost, the average non-performing loan rate of consumer finance companies in 2019 is 2.63%, slightly higher than the average non-performing level of credit cards, slightly lower than that in 2018 (down 0.11 percentage points). < p > < p > from the perspective of customer groups served by consumer finance companies, while the scale continues to expand, the customer group structure tends to be younger, with the post-90s accounting for about 505. At the same time, it is still sinking to the third and fourth tier cities. According to the report, < / P > < p > by the end of 2019, the number of customers of consumer finance companies was 127.2792 million, an increase of 52.29% over the same period of last year, with a significant growth of customers. According to statistics, some consumer finance companies account for more than 90% of their customers born in the 1980s and 1990s. Among them, the post-90s customers generally account for about 50%, and there are 9 consumer finance companies accounting for 50% ~ 75%. Their special products and services for post-90s customers are more prominent. In addition, consumer finance companies have been sinking into the third and fourth tier cities. According to statistics, of the 23 consumer finance companies that can be counted, 17 are in the first and second tier, and the proportion is declining; among the 21 consumer finance companies in the third tier and lower tier cities, 14 account for 25% ~ 75% of the customers, and the proportion is increasing; among the 19 consumer finance companies in the county and below regions, 8 customers account for 25% ~ 50% And this proportion is rising. According to the China Banking Association, these rough statistics suggest that consumer finance companies are sinking into third and fourth tier cities and even county districts. On the one hand, the financial services in the first tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen are nearly saturated and the competition is fierce. On the other hand, there is a long-term absence of consumer financial services in small and medium-sized cities and rural areas, and there is still a large market space for financial services in underdeveloped areas. Consumer finance business from big cities to small towns will gradually fill the gap of traditional financial services of commercial banks. According to the media reports of the next few weeks, Nanjing tech group and Nanyang Technology Group Co., Ltd. will set up a few times Bank in Nanjing. The company will be incorporated in Chongqing with a registered capital of 8 billion yuan. At the same time, according to a person familiar with the matter, shortly after Xiaomi Xiaojin got the approval for the establishment of Xiaomi Xiaojin, the consumer finance company to be set up by ant group has been recruiting low-key talents through headhunting. < p > < p > it’s not just ant group, but there are new capital stocks or new consumer finance companies in recent years. On the one hand, Internet companies actively participate in consumer finance companies. For example, Sina Weibo shares Baoyin consumer finance through its independent registered company, baidu shares Harbin Bank consumer finance through its duxiaoman technology company, Jiufu shares Hubei consumer finance through its technology subsidiary, and Xiaomi participates in the newly established Xiaomi consumer finance (opened in may 2020). < / P > < p > on the other hand, large traditional financial institutions have set up new consumer finance companies, such as Ping An Group’s new Ping An consumer finance company (which opened in April 2020), Everbright Group’s plan to build sunshine consumer finance company, and China Construction Bank’s plan to invest 10 billion yuan to establish a consumer finance company are also emerging in an endless stream. On August 10, Everbright Bank announced that Beijing Sunshine consumer finance, a holding subsidiary, was officially opened. Up to now, there are 27 licensed consumer finance companies in China. According to the report, under the long-term trend of declining demand potential and gradually expanding supply scale of consumer finance, the consumer financial market has gradually shifted from the seller’s market with insufficient supply to the balance between supply and demand, and even the buyer’s market with excess supply, from the blue ocean market to the Red Sea market. < / P > < p > for the future transformation of consumer finance, the report believes that the transformation lies in four aspects: Deepening consumption scene, deepening technology application, fine internal management and diversified business development. Since 2019, consumer finance companies have firmly grasped the concept of science and technology leading development, continued to increase the research on 5g, artificial intelligence, big data, cloud computing, blockchain and other cutting-edge technologies, and applied them to daily operation and management such as accurate customer identification, process tracking, intelligent marketing, and product process transformation. < / P > < p > according to incomplete statistics, most institutions in the industry accounted for more than 5% of R & D investment in 2019, almost all of them realized intelligent marketing, post loan management and risk control of big data, some of them realized “cutting-edge” applications such as Internet court collection based on blockchain, and a few institutions realized the export and enabling consumption of financial technology The whole credit industry.