Chapter 2306 Lending

The UK is a long-established financial empire. Taking advantage of the spring breeze of the Internet, a large number of technology and financial startups have emerged in recent years. Because there is no money, many projects have to find ways to submit financing applications to Zhou Buqi.

Even David Gill became a sounding board, saying that he had a friend working on a similar entrepreneurial project in London.

The project landscape is huge.

We want to use technology and data analysis to reduce risks, thereby opening up the credit relationship between traditional banks, enterprises, and users, and issuing loans to small and medium-sized enterprises and individuals.

This is certainly a good entrepreneurial direction.

It also has great social value.

Anyone who can understand the matter of lending would be considered unworthy to award him a Nobel Prize in Economics.

Just like the subprime mortgage crisis.

In fact, various countries have launched a series of response measures. For example, the Federal Reserve has provided hundreds of billions of dollars in loans to major U.S. banks, allowing them to lend to individuals and companies experiencing financial crises.

Helping them tide over difficulties will stimulate consumption, ease the economic pressure in society, and stop the downward trend.

However, here is the biggest problem.

Risks of Lending.

The Federal Reserve does not give money to these big banks for free. It lends it to them and will have to pay it back in the future. Once the debt is repaid, these banks will go bankrupt or lose control of the debt-for-equity swap.

This is difficult.

When the economy collapses, the market situation is like a sea of ​​swords and fire, with thunder and debt traps everywhere. Who dares to lend?

After the loan is extended, what if the party who got the loan fails to repay the loan?

Especially some small and medium-sized enterprises.

The ability to withstand pressure is weak and it is very difficult to survive in a market with extremely low certainty. We issued loans to them, but their business conditions did not improve and they went bankrupt. What should we do?

If the money is not paid by then, the big banks will not be able to collect the loan. If the loan cannot be recovered, it will become a bad debt. In the future, it will not be able to repay the Fed's debt. These banks will also have to suffer misfortune and thunder.

So they don't dare to lend at all.

It is better to hoard money in your account, pay a certain amount of loan interest to the Federal Reserve, and pay it back as soon as it is due. Survival is the most important thing.

This led to the failure of various stimulus policies in response to the subprime mortgage crisis in various countries, and the market economy was left wailing and covered with chicken feathers.

Modern enterprises in modern society, without exception, must rely on financial means to promote their development. There is too much demand for loans in the market.

When many companies encounter cash flow crises, because they cannot get loans from banks, they even have to borrow from the private sector at usurious interest rates of more than 50%.

Once you get the loan, you will be stripped of your skin, but the company will survive.

If you can't get the loan, the company will die immediately.

The traditional financial system has been developing for so many years, but it has also been slow to solve the problems of credibility and risk in the lending process. The economic vitality of major economies around the world is, to a large extent, positively related to their lending capacity.

Economies with higher levels of lending tend to have faster economic growth.

Just like the crazy Japan in the 1970s and 1980s, major banks came to the door and begged customers for loans. At that time, many wealthy families on Hong Kong Island made their fortunes by relying on Japanese loans.

As the age of data dawns, it seems... there might be a way to solve the loan conundrum.

Zhou Buqi was foresight and had always thought so. It also intends to promote Ziweixing International to develop in this field and find new business directions in technology finance.

But as time went by, he gradually felt something was wrong.

When he returned home in the evening and drank the chicken soup made by his mother, Zhou Buqi felt that he should have a good rest tonight and keep his body strong.

There was Sun Wanran next to her, and she seemed to have noticed something. She wanted to tease him for fear of hurting his self-esteem, so she sat in the study, watched him drink chicken soup, and said curiously: "Why doesn't that technology and finance project work? You're not Is that what you’ve been saying all along? You can use big data analysis to rate customers’ credit, and then give you an estimated loan amount based on the algorithm.”

Zhou Buqi said: "Yes, I have always thought so."

Sun Wanran was puzzled, "Then why did you refuse? Is it because you are worried about financial controls?"

"There's nothing to worry about."

Zhou Buqi waved his hand.

The British market is the most open market in the world, even more open than the United States. When purchasing a company in the United States, it is best to obtain approval from relevant departments. Only after approval is the deal truly finalized. There is no need for it here in the UK. There is no such approval department at all. It all relies on market regulation. As long as it is legal, you can do whatever you want.

Although the financial field is sensitive, foreign investment can operate in the UK without restrictions.

Sun Wanran asked: "What's the reason?"

Zhou Buqi said: "There are too many similar entrepreneurial projects. In the UK, I have seen more than a dozen similar technological and financial entrepreneurial projects, and they want to ask me for venture capital. There are even more in the United States. It’s densely packed everywhere. Come on, drink some too. My mother said this is foreign black-bone chicken, which is nutritious and beautiful.”

Sun Wanran came over, took a sip with a smile, and then asked: "Why can't it work after everyone else has done it?"

Zhou Buqi said: "God said, walk through the narrow door."

Sun Wanran rolled her eyes at him, "What kind of reason is this?"

Zhou Buqi sighed, "I can't tell you exactly. If I was the only one in the world who thought this way, then I would definitely go for it and be confident. But now there are so many similar projects, just in Britain and the United States. There are dozens or hundreds... So many people have the same idea as me and want to do this, but I have no confidence."

"Uh..." Sun Wanran looked at him blankly, "No wonder you are that rare big boss."

Zhou Buqi said: "After much thought, including all the big entrepreneurs in the world, I feel that Boss Ma can do this, and everything else is nonsense."

"ah?"

Sun Wanran was stunned.

Zhou Buqi said amusedly: "What's your expression?"

Sun Wanran said in surprise: "Is this an exaggeration? Is Mr. Ma so powerful?"

"It's more powerful than you think." Zhou Buqi nodded, "However, if he wants to do it, he can only do it domestically. This thing is closely related to e-commerce. In this business, the most important thing is It’s just data. Those startups don’t have any data, how do they process it?”

Sun Wanran said: "Those startup companies don't have it, but Ziweixing does, and so does Ziweixing International. There is so much data!"

Zhou Buqi said: "Data and data are different. The data in the hands of Ziweixing International are all entertainment-oriented, such as social networking, videos, news, etc. The data in Ali's hands are different. They are real. Consumption data is financial data. Using algorithms based on entertainment data to engage in finance is definitely not reliable."

Sun Wanran nodded lightly, "Yes."

Zhou Buqi stretched and said with a smile: "Loans are too risky after all. Once a crisis occurs, giants with tens of billions or hundreds of billions of dollars will collapse at their word. Ziweixing uses the cloud platform to provide services to the third party." It’s okay for third parties to provide some financial services, but don’t do it yourself for the time being. The top priority is to do a good job in the payment business. At the business level, earn some handling fees; at the strategic level, you can use the payment business to bring Helo to life to consolidate the product. Activity."

Sun Wanran thought of something, and Yanran said: "By the way, I recently downloaded two social products launched by Facebook, both of which are based on Helo... The experience is terrible, and the UI design is like a product made by college students. ."

Zhou Buqi said: "It has to do with the product team. For this type of product, the most important thing is the iteration speed of the App."

Sun Wanran blinked, "What do you mean?"

Zhou Buqi smiled and said: "Any product will have many shortcomings, and these shortcomings are often pointed out by users. Then the product team quickly makes fine adjustments. The more times and the higher the frequency of fine-tuning, the better The closer they can be to users. This is a common disadvantage of Silicon Valley giants."

"how?"

"The salary is expensive, the employees' work attitude is not serious, and their arrogant attitude is not good either."

"Oh..." Sun Wanran seemed to understand something, "So part of Helo's product team is in China! The work efficiency of foreign teams is too poor. After they complete a fine-tuning, there may be several new products. It’s just a small problem. The domestic team is better and let the International Department handle it.”

Zhou Buqi said: "Yes, if you look at Microsoft's product experience, it is very good, because Microsoft has a team in China, iterative updates are faster and closer to users. Google... Look at Twitter, after it was acquired by Google, it launched The new version of Twitter App, the UI design...not to mention compared with Ziweixing's Weibo, is even better than Lao Zhang's Sohu Weibo. The product is a mess. If it were to compete domestically, it would have been ranked in the 18th tier. Outside."

Sun Wanran was convinced and nodded slightly, "Well, Google is so powerful, with so many scientists under its command. Let their big scientists do the work of moving bricks, and even if they do it, they will be confused and not take themselves too seriously."