What is the difference between online business bank and traditional bank

Ant gold services under the official operation of the network business bank, the network business bank as the name suggests is open in the online bank, unlike traditional banks have physical outlets, so the network business bank and the traditional bank in the end, what is still fundamentally different? From the beginning of the preparation, the net merchant bank will be the financial inclusion as its own mission, hoping to use the Internet technology, data and channel innovation to solve the problem of financing difficulties of small and micro-enterprises financing expensive problems, the lack of rural financial services and other issues, to promote the development of the real economy. In fact, the biggest difference between online business banks and traditional banks is the difference between "big" and "small" service targets.

"Big" and "small" are different

First, the object of service of the online business bank is different. According to Yu Shengfa, president of Netcombank, "small and micro enterprises, individual consumers, and rural users" are the three major target customer groups of Netcombank. Compared with ordinary banks, the scope of the object of the online business bank service is relatively niche, is the ordinary bank less attention to the group, and it is difficult to make big money from these groups.

Second, online business banks have different lending standards. For traditional banks prefer to enlarge the amount of loans, but the network business bank only do small and micro customers, do not do more than 5 million yuan of loans, do not do the "law of two or eight" in the 20% of the head of the customer, the Internet way to serve the "long-tailed users.

From the first two points of view, for ordinary banks, the online business bank is a supplement to existing financial institutions. Yu Shengfa also said in an interview with the media, in the issuance of large loans, traditional banks have done a very mature and very good, Netcommerce Bank does not do business in this area, when the Netcommerce Bank's users to do big time need a larger loan, Netcommerce Bank to play the nature of the platform introduced to other banks.

Third, subject to the object of service, online business banks also need to find a new mode of operation to treat its customers, that is, to apply a simpler and more flexible lending methods. In general, small and micro enterprises are more important to the timeliness of the traditional bank loan approval is too complex, the process is also long, maybe wait until the time of the loan has gone bankrupt. Netcombank's lending method is the "instant loan that is to be used" method, when the small and micro enterprises or entrepreneurs need to loan, open the phone can get a loan, but also can be early repayment of the loan, support at any time repayment.

Fourth, and traditional banking bandwidth all need collateral, pledge or guarantee, but these are less applicable to MSMEs and individual consumers. The bank hopes to establish an Internet credit system to help users discover, accumulate, create and consume credit, and ultimately make credit equal to wealth.

Fifth, the assessment method is different. Netcommerce Bank shareholders, ant gold service CEO Peng Lei in the inaugural meeting of the expectations of the netcommercial bank, said, netcommercial bank's assessment goal is not to look at the market size, not to mention the profit margin. Rather, the hope is that it is the number of small and medium-sized enterprise customers served by the Netcommerce Bank and all the massive number of ordinary consumers. Also look at the customer loyalty.

The goal of Netcombank is to serve 10 million small and medium-sized enterprises within five years.

Sixth, there is very little business being conducted, and for the time being, there are only microfinance services. In fact, the micro-credit business also inherited the business of Ali micro-credit and ant micro-credit, although emphasized that there are some differences, but do not care about these details.

Different strategic focus

Rural finance is an important strategic focus for Netcombank, and Yu Shengfa elaborated on the specifics in a post-meeting interview. Netcombank will follow the rural strategy of Alibaba and Ant Gold. Alibaba's rural strategy, the "Thousand Counties and Ten Thousand Villages" project, will invest $10 billion in three years to cover 100,000 villages. With the deepening of Alibaba's rural strategy, Netcommerce Bank will bring its financial services to the countryside along with Alibaba Rural.

Different Operation Methods

The biggest feature of Netcommerce Bank is that it is the first bank in China to build its core system on the financial cloud, and it is also the first bank in the world to go to IOE completely. The bank's core system, developed on a financial cloud computing platform, gives Netcombank the ability to handle highly concurrent financial transactions, massive amounts of big data, and elastic capacity expansion, and to utilize the advantages of the Internet and big data to provide financial services to more small and micro-enterprises.

Netcombank will be a data-driven bank, relying on big data to acquire customers and do risk screening. In the words of the data scientists at Nethersole Bank, relying on big data analysis to profile users, Nethersole Bank may know more about its users than the users themselves. When you need a loan and whether you have the ability to repay it, Netcombank can make a judgment in real time or even in advance based on the big data it has accumulated and the risk model it has built. These capabilities are also inherited from the ants, which have been able to rely on data to do risk screening, and have been able to keep the delinquency rate well below.

With the help of big data as the "super brain", the one who lends you money will be a machine, not a person. In the future, in the online business bank loans, the process may be like this, 3 minutes on the computer to fill out and submit a loan application, within 1 second loan issued to your account, the process of zero human intervention.