What is consumer finance

In layman's terms, consumer finance: is a loan issued by a consumer finance company to a consumer for the purpose of consumption (excluding the purchase of a home or car).

Consumer finance, i.e., credit loans for the purpose of consumption. It generally refers to small loan products and financial services provided by institutions or enterprises for individuals with daily consumption (excluding housing and automobile consumption loans) as the main demand, characterized by small single credit amount, flexible service mode, short loan period (generally 1-12 months), easy process, simple application material requirements, and rapid arrival of payment.

The essence of consumer finance is to satisfy in advance the material needs of consumers who have a need to shop but are unable to pay in full in the short term. A very popular phrase to describe it is: spend tomorrow's money, fulfill today's dream.

The status of consumer finance?

Currently China is in the consumer boom Internet financial era, along with the gradual change of people's concept of over-consumption, as well as the continuous improvement of the personal credit system, the credit transaction has become the most important way of consumption.

Compared with the traditional banking system, the biggest advantage of the consumer finance company is that there is no need for collateral and guarantee, plus the characteristics of fast audit, short term and flexible credit, greatly catering to the fast-paced consumption needs of the young groups, so there is a huge market space and development potential of consumer finance.

1, consumer groups

With the continuous upgrading of people's consumer attitudes, the traditional consumer concept of "keeping expenditure within the limits of revenues" has long been unable to keep up with the pace of the times, and the current young group of 80, 90, more advocates of rationality, "ahead of consumption! "

They grew up in the era of rapid development of the Internet, the acceptance of new products and new technologies is higher, and they are willing to pay for the interest, but also more enthusiastic about the pursuit of high-quality, convenient products and services.

Data shows that more than 50%, or 50.17%, of the "post-90s" use consumer loans for daily consumption, making them the main force in the field of "over-consumption".

2, financial technology

As the saying goes: technology changes life. The rapid development of data technology is the driving force behind the innovation and upgrading of consumer finance.

Consumer finance companies have fully optimized financial service channels and further promoted consumer upgrading by exploring leading technologies such as big data, cloud computing and artificial intelligence, and applying them to various fields such as credit, risk control and anti-fraud.

In addition, with the continuous improvement of the credit system, the efficiency of financial services has been greatly improved, and more people have enjoyed the services and support of inclusive finance.

3. Coverage of areas

Consumer finance companies have built a huge network system through cell phones, APPs, online direct sales, e-commerce platforms and other channels, covering all areas online and offline, and comprehensively meeting the diversified needs of consumer groups.