Seeking God to conduct SWOT analysis of ant gold service

SWOT analysis of ant gold service This question is as follows:

(a) Advantages (Strengths)

1. Advantages for the traditional banking industry

(l) Convenient payment. Compared with traditional means of payment such as , swipe cards, checks and other means of payment, ant gold service launched a new third-party payment method is more convenient, just carry a cell phone, you can complete almost all payment activities.

(2) improve payment efficiency and reduce transaction costs. Unlike the traditional "customer and bank" model, Alipay replaces customers with multiple commercial banks and establishes connections at the same time. By means of secondary clearing, Alipay realizes a large number of small transactions in Alipay's internal clearing after rolling up the difference, which improves the efficiency of payment and reduces the cost of payment.

(3) Low threshold, wide range. Alipay entry threshold is much lower than traditional banks, to a certain extent, to make up for the gaps in traditional payments, providing opportunities for small and micro-enterprises, but also to create the conditions for payment between individuals.

(4) Financial regulation is more relaxed. Traditional banks are limited by the CBRC's high-intensity regulation, unable to essentially reduce the complexity of bank payments. In contrast, unlike the strict policy regulation of banks, Anthem eliminates most of the auditing process, making its business

more convenient.

2. Advantages for competitors in the same industry

(1) Strong support from e-commerce platforms. The huge e-commerce market provides Alipay with a stable volume of customers and huge transaction volume. At the beginning of its creation, Alipay relied on the mature e-commerce platform Taobao to quickly open the market. After separating from Taobao, Alipay and Taobao promote each other and **** the same development. At the same time, Alipay actively cooperates with other e-commerce platforms, and its business coverage includes almost all e-commerce industries.

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(2) Payment means is more perfect. Compared with competitors in the same industry, Alipay entered the market early and developed for a long time, and has formed a set of more secure payment processes. For example, Alipay was the first to join the margin system, which substantially reduces the credit risk in payment.

(3) Wide business coverage. In addition to the payment function, Ant Gold has launched a variety of convenient services. Ant Gold has become a multifunctional platform that integrates payment, transfer, fund, insurance, bill payment, loan and other functions. At present, major domestic commercial banks and several international organizations have established in-depth strategic cooperation with Alipay, further enhancing the competitiveness of Ant Gold.

(4) Strong innovation. First, financial innovation. Ant gold service is shifting its development focus from payment business to mutual network finance. the new fund financial products created in 2014 - balance treasure quickly captured the market, attracting 250 million users in two years, and the cumulative funds attracted amounted to trillions of dollars. In addition, its launch of several credit platforms, such as Ant Chant and Sesame Credit, has bridged the gap of credit consumption in the Chinese market. Second, technological innovation. since 2016, Alipay has taken the lead in launching barcode payment, breaking the situation in which Alipay can only transfer payments. Compared with traditional card payment and

payment, barcode payment is faster, more convenient and less costly, and is favored by merchants and customers. In addition, its introduction of face payment, fingerprint payment and other means are also rapidly gaining popularity in the market, providing it with a sustained competitive advantage.

(II) Weaknesses

1. Disadvantages for the traditional banking industry

(1) Insufficient customer base. As traditional financial enterprises, the major commercial banks have a long operating time, a large number of customers, a large amount of capital accumulation, and a perfect financial product trading system and customer information management system, occupying an unshakeable dominant position.

(2) High financial risk. After years of development, commercial banks already have a mature risk control mechanism, while relying on the CBRC's high-intensity supervision, the bank's financial risk can be better controlled. And the risk of the financial products launched by Ant Financial Services is higher than that of traditional commercial banks. In addition, the ant gold service business model, easy for false funds transactions money laundering, as well as the flow of illegal funds into the normal circulation area to facilitate the hidden funds.

(3) Limited resources. Most of China's commercial banks are state-controlled enterprises, guaranteed by the government's credit, and their commercial credit is higher than that of ants, and they have a mature talent training system, sufficient financial and policy support, and complete technology. As a private company with limited resources, it is difficult to compete head-to-head with commercial banks.

(4) Single source of profit. Ant gold service's main source of income is service commissions, advertising revenue, etc., while commercial banks mainly derive their income from the deposit and loan spreads, while owning all the revenue sources of Alipay. At the same time, traditional commercial banks accept third-party payments, but also accept

payments, ATM payments and other means of monetary payments, all of which can be profitable.

2. Disadvantages for competitors in the same industry

As the leading third-party payment company, Ant Financial is the main imitation object and competition object for companies in the same industry. Competitors in the same industry will quickly learn from its launch of various businesses, and in a short period of time to launch similar, or even better than the original product of the new product, and as the leader of the third way payment platform, ant gold service is difficult to learn from the experience of other platforms.

(C) Opportunities (Oppmtunities)

1. Wide market, large space for development

Compared with the more perfect market owned by commercial banks, Alipay still has a lot of room for development. China has 751 million Internet users, of which 96.3% are cell phone users, compared with Alipay's 450 million and BalanceBalance's 250 million users, its remaining market still has huge potential.

2. Industry transformation, cooperation increased

In recent years, due to changes in the market environment, many large commercial banks began to take the initiative to reach a cooperation intention with Ant Financial Services, hoping to naturalize Alipay as a commercial bank's own means of induced payment. At the same time, the third-party payment enterprises within the cooperation is also more and more frequent, in the case of increased competition, the emergence of the "warmth, *** with the development of" situation.

(D) Challenges (Threats)

1. Commercial banks to accelerate the transformation

In the face of market changes, the traditional banking transformation process has accelerated significantly. In recent years, due to the support of national policies and internal reforms of commercial banks, their competitiveness has been increasing. Major commercial banks have successively launched and improved their online banking and mobile banking clients, stabilizing their inherent great advantages.

2. Increased pressure of competition in the same industry

In recent years, more and more large enterprises through corporate acquisition (merger) purchase into the military mobile payment, such as China Mobile, millet, Evergrande and other companies have been involved in third-party payment of the competition, the scale of competition is rare. Although ant gold service with its sharp business sense in the competition to stay ahead, but its dominance in recent years the trend of decline has appeared.

3. Financial regulation gradually strengthened

The fifth national financial work conference put forward: to prevent financial risks, enhance the state's control over the financial market, will become the short-term pursuit of the goal. Under this premise, not only will Anthem's advantage in financial innovation be drastically reduced, the original mature business will also be affected.

Two, Alipay's development goals

1. Facing the traditional commercial banks - will be convenient to the end

With the rapid development of the network, the commercial banks have introduced more and more convenient payment methods. In order to maintain a competitive advantage, the Ant Financial Services platform not only needs to ensure the security of the business, but also to make the payment process more convenient.

2. Facing competitors in the same industry--developing their own advantages

(1) Reduce the business surface and divide the key business. The mainstream development trend of the domestic third-party platform for the continuous expansion of its business coverage in order to obtain higher market favor. As the competitors' business surface becomes more and more extensive, Alipay's advantages continue to shrink. In order to maintain the competitiveness of the platform, at this stage, Ant Financial Services is constantly expanding its business, but the new business has a small audience and is not very profitable, which puts it in an awkward situation of dilemma. On the contrary, if Ant Financial Services, with its good product base, focuses on the development of projects with competitive advantages, it will be possible to reach a monopoly position in many aspects.

(2) Insist on financial innovation. Financial innovation is the foundation of Ant Financial's rapid development. The financial products launched by Ant Financial always become the object of imitation by other competitors, and in order to maintain its competitive advantage, it still needs to continuously launch innovative products. Only by acting as a leader in the development of the industry can it exchange for a higher degree of market recognition.

(3) Control its own risk. Alipay risk comes from a number of aspects, ant gold service can not only pursue market share and profitability, while ignoring the risks that continue to accumulate in the development. With the introduction of rules such as the balance treasure set purchase limit, enhanced credit management system, account real-name authentication, the balance treasure has been continuously strengthening its risk control system.

(ii) Long-term goal

Ant Gold's long-term goal should be to actively guide the market and control the direction of the industry.

Since 2016, companies relying on the Internet have risen rapidly, causing the public's dependence on mobile payments to increase dramatically. In the emerging industries mentioned above, traditional paper money can no longer make payments, and electronic money has become the only means of payment. Third-party payment platforms and new online enterprises complement each other, making "Internet+" a rising status. Ant Financial Services has taken the lead in combining its own Ocean

Base database with the platform. Using data analysis, the platform can accurately grasp the customer's consumption demand, as well as consumption affordability and other key data, which provides new ideas for the platform's development.

Third, the third-party payment platform transformation direction prediction

(a) State participation in shareholding

1. Reduce the financial risk

By the state holding enterprises, you can accumulate all kinds of talents in the enterprise, reduce the technical risk caused by man-made. In addition, the government directly controls the enterprise, increasing the supervision, standardizing the operation of the enterprise, reasonable investment, steady state operation, will significantly reduce the investment risk brought about by the irregular operation of the enterprise.

2. Accelerating Financial Transformation

Virtual currency is one of the new development directions of the world's financial system, and the application of virtual currencies will certainly be built on the mobile payment system. Whether the mobile payment system can develop rapidly and smoothly is an issue that China's financial market should take the lead in considering. The leading state-controlled third-party platform enterprises will surely play the role of reform pioneer in the mobile payment industry, i.e., to promote the financial transformation and increase the competitiveness for the country in the world market.

3. Challenges to reform

State holding of private enterprises is a challenge for both sides. For enterprises, how to adapt to the management mode of state-owned enterprises is the most pressing issue; for the state, how to maintain the competitiveness and profitability of enterprises under the premise of strengthening management is also an important issue. In addition, China has been implementing the policy of denationalization, and the process of nationalization of enterprises is facing serious challenges.

(II) Establishing a unified platform and strengthening internal market autonomy

On August 4, 2017, the Bank issued a document titled "Notice on the Migration of Non-Bank Payment Institutions' Network Payment Businesses from the Direct Link Mode to the Netlink Platform", which is about to complete the "integration" of third-party payment platforms and bring them under the unified management of the Netlink platform. It is about to complete the "integration" of third-party payment platforms, which will be included in the unified management of the NetLink platform. NetLink is funded by third-party platforms*** and is an autonomous organization within the industry. The specifics are shown in Figure 1.

1. Unified management to prevent vicious competition

Establishing a unified management platform and a sound communication mechanism between platforms can effectively control the direction of development of third-party payment platforms, and maximize the prevention of vicious competition between platforms and platforms and platforms and commercial banks, so as not to cause unnecessary financial risks and economic losses.

2. Facilitate unified control

Through the NetLink platform, the information among the third-party payment enterprises is unified and controlled, strictly controlling the information of funds, monitoring the flow of funds, and ensuring the safety of funds and legitimate transactions. At the same time, the unified control mechanism is a prerequisite for the establishment of sound control means and the formulation of laws and regulations. The future will be through the complete legal means to reduce the risk of third-party payment platform products, the use of self-governing system within the industry to monitor each other, hold back, to facilitate the management of the state.

(C) Integration with traditional commercial banks, seeking synergistic development

Traditional commercial banks are sitting on a large number of customer resources, but restricted to the banking regulatory approach and slow transformation, facing customer loss, negative performance growth dilemma. On the contrary, the third-party payment institutions, due to the number of institutions in recent years has risen sharply, the competition among them is increasing, the number of new customers slowed down, the development rate has slowed down the trend. In recent years, the major commercial banks began a small cooperation with third-party platforms, *** with the launch of some new Internet products, quite popular with consumers.

Looking at the business direction of the two, the third-party platform to the micro-payment business, the traditional commercial banks to the traditional business customers, the conflict surface is small and can be transformed. It can be seen that the two can increase cooperation, and even commercial banks can naturalize the third-party payment platform as a sub-business, indirectly promoting the development of network payment mode.

Through in-depth cooperation, commercial banks can provide third-party platforms with settlement functions, strong technical support and effective guarantee. At the same time, the third-party payment can reduce operating costs and create a good payment market for commercial banks. Through cooperation, both sides can achieve a win-win situation.

Fourth, Conclusion

The rapid development of the Internet has led to radical changes in the traditional financial industry and the rapid rise of Internet finance. As the foundation of Internet finance, the importance of mobile payment is indisputable. Although the pace of transformation of traditional financial enterprises continues to accelerate, but compared to the traditional payment model, the third party payment still has a great advantage. If the mobile payment can be fast and healthy development, the challenge as a driving force, will be on the overall financial market caused by a greater vibration, will eventually get a place in the market.