Source: Beijing Daily domestic credit card balance transfer business enterprise head WBL Jinke Holdings Limited (hereinafter referred to as "Wearnes Golden Section"), recently apply for Hong Kong IPO。
Compensatory credit card business in recent years gradually into the public view, from a performance point of view WBL Golden Section, while the last three years customers soared 40 times, the company's losses also expanded in recent years。
Wearnes Jinke industry is more like a mirror that lights up the current domestic credit card market compensatory financing expensive, difficult predicament profit。
Industry insiders said the low ceiling of the industry, mainly due to the limited market acceptance, with great difficulty off, the outlet market is yet to come。   It is a loss for three consecutive years WBL Jinke application materials submitted to the HKEx showed that the company is an independent online consumer financial services provider, began in mid-carry consumer finance services in the 2006, offers three main product lines of credit : credit card balance transfer, consumer credit products and product line to the next line of credit, installment models are。
  Wearnes Branch of consumer financial services also have color science and technology, official website said the company is "technology-driven smart consumer financial services provider."。 The company registered subscribers soared from the mid 1100000-48400000 in 2015-2017。
In contrast, however, Wearnes Jinke more often or it is considered to represent a credit card balance transfer industry, "credit card" in the last three years has grown into the company's leading products。 Data show that the end of 2015, Wearnes Jinke credit card balance transfer products in the company's share of the total loan amount is also achieved only% at the end of 2017 rose to%。
Wearnes Branch of disclosure, "credit card" products ranked first in China's business credit card balance transfer market, accounting for about% market share。
  Compensatory credit card business has become WBL Jinke's flagship product, but another set of traffic data reflects the industry is not so good money。 2015–2017 years, the net loss Wearnes Jinke were 300 million yuan and 1 billion yuan, was expanded year by year。
2015–2017 years, the company achieved a loan billion, billion, billion, CAGR%; but the total income respectively billion, billion, billion, CAGR% only。
  A source close to WBL Branch, told Beijing Daily reporter, earnings data is not satisfactory mainly due to a substantial increase in the fair value of the company's preferred shares due to the impact of fair value losses should the removal of preference shares and share-based compensation expense of outside, Wearnes Branch in 2015. adjusted net loss in 2016 were billion, billion, while adjusted net profit, compared with one hundred million yuan in mid-2017。
In addition, at the end of 2017, Wearnes Branch of the total customer loans million, remove the provision for impairment million, net customer loans of billion of overdue rate is at the industry average。
  But in addition to limited availability spreads factors change in fair value of preferred shares, many industry insiders believe, Wearnes Jinke is not optimistic about the profitability of the collection, high administrative costs, which are not unrelated。 It Wearnes Branch of the HKEx disclosure of data, 2015–2017, the company lending and collection costs reached million, million and one hundred million yuan。   A more important reason on the balance of payments, compensatory financing your credit card companies generally face the problem, or the constraints of industry profits。
, Is the platform from the start with financial institutions to obtain credit card compensatory funding model point of view, and use those funds to pay off credit card bills cardholder balances, cardholders pay installments to the platform and transaction costs。
  Lending spreads undoubtedly crucial in this mode, that is, to borrow funds at a low cost, then lend out at higher interest rates, in order to ensure the company's profitability。   But in order to obtain customer, the credit card company if the compensation fee is set too high, will "scare away" a lot of users, drive down rates of compensatory become a necessary means of competition among peers。
Senior credit card researchers Dong Zheng said for example, assume that a user A bank owed money to the bank to find a B or small loan company, A Bank interest income 18%, B 20% of bank loans has to fees, more expensive to borrow money does not make sense to pay off debts。   According to a customer service WBL Golden Section, the "credit card" monthly interest rate in% -% (annualized% -%), a user will receive up to 50,000 yuan credit card balance transfer service, including a period of three, 6, 12, determined by a specific rate calculation system。
Suppose a user to apply compensatory 1 million, repayment in three monthly calculated rate of 1%, a total fee of 300 yuan。   According to customer service personnel also provides credit card services 51 compensatory credit card platform introduction, if a user borrow 10,000 yuan, the monthly interest cost at 49-171 yuan, three-month fee at 147-513 yuan。   It is noteworthy that, Wearnes Branch has a number of credit card balance transfer can be a business channels "blood transfusion", including trust loans, brokered loans and other credit enhancement, and Wearnes Jinke own small loan companies, the company's compensation the cost of capital is relatively controllable。   However, compensation from the entire credit card industry perspective, statistics show that costs are generally compensated platform to obtain funds from financial institutions in more than 15% annualized, while the annual installments of compensatory fee from the customer side of the platform to get but 18% left and right, plus bad debt, labor costs, marketing expenses, profit space is limited。
  The arrival of the credit card market outlets has not compensated the company's survival pressure not only from peers, but also from banks。 In fact, credit card companies compensate customers, mostly in bank failed to obtain services。
Wearnes Jinke in the application materials made it clear, "but we usually get high-quality and near-prime borrowers traditional financial institutions to provide adequate services tailored to consumer financial products held bank accounts and credit cards."。
  Bank credit card installment rate itself, but also more cost-effective than many of the company's compensation fee。 According to data of Beijing Chinese Commercial News reporters Bu Wanquan and Diao Chadi, credit card bills monthly installments highest% interest rate, the lowest%, divided into up to 36; credit card installment monthly interest rate of up to 1%, the lowest%, divided into up to 24; If the application is 10,000 yuan installment credit card bills, according to its official website calculation tool provided, 3 total fee is 270 yuan。   Also because of this, China's current credit card compensatory market has not formed a certain scale。
Suning Institute of Finance researcher Zhao Qing, at present China credit card market is very small compensatory business, according to "2017 Annual China compensatory credit card industry research report" should be the end of my credit card outstanding credit balance trillion yuan, while credit card lending market compensation after the balance scale at around 87 billion yuan, accounting for only% of the loan balance, the body is very small。
  Bank credit card had also try to compensate business, but very soon died down。 Dong Zheng said that in practice China has done in 2007 on the banks of compensatory business, but was soon "death", the result of nothing more than compensated with a "cheap" bank to repay the cost of funds to help cardholders after the service, making their users, which is the core business of compensatory business。
At present, the so-called compensatory credit card, in fact, the deformation of small business loans。
  Qing Zhao further pointed out that, on the one hand, China's banking industry most credit card users are better qualified client base, good credit history, credit card installment business for not a lot, so small compensation for the credit card business requirements; on the other hand, banks compensatory credit card business is not much, mainly because some gold mutual platform to carry out shorter business hours, limited customer acceptance。
In this environment, the industry believes that the compensatory our credit card business has not yet come true outlet。 Beijing Chinese Commercial News reporters Cheng Weimiao and Shi Xi reporter Song Yitong / Wen Zhang Bin / tabulation。