“People think the core in Fintech is technology, it is not true in fact, a 1000 million users non-financial insitutation could find ways to graft fintech by financing or other ways to realize its transformation. However, a professional team with a good fintech model could be hard to operate without users probably."
01 Finance or Technology
Fintech：
.Finance
.Technology
Which one is the focus?
If you talk with people from finance industry, he will tell you is Finance as technology is tool, however when you talk with technology people, he will tell you is technology as borrow and earn money are the most fundaｍental financial functions and already there 1000 year ago.
But the question here is do we have internet 1000 year ago?
Absolutely don't!
Therefore, the core in my view in fintech is not the changes in financial functions but bring technoloy to people with finance demand.
In this era, the key is how to use technology to equip and robust financial functions, whatever is AI or blockchain or Cloud, Big data, this era, it is always technology drives the renovation of the business in finance.
Today, fintech company build its own ecosystem around users: find users, swap users, maintain users, inspire users, then create infinite possiblities.
The following, I want to share few important characterics in China fintech industry.
02 Focus on users value
Care most what clients want rather than what we can offer.
03 Always watching public market and data in high frequency
where is the fintech company users?
The core difference between traditional financial insitution and fintech company is one focus on offline business, one is focus on online business. Therefore traditional one is putting their eyes on 20% people who are classfied in high net value group, because they contribute 80% business revenue. But the latter one focus more on the mass market, if could get high frequent data and hit the damand point of public , that would be perfect.
Take Ant financial as an example who is valued the highest fintech company and gradually target to the biggest chinese fintech company. However, they also catch a point to break though at the very begining of the business: the trust between seller and buyer.
In e-commerce platform, the paintpoint from buyer is i pay the money, but didn't receive a satifactory product; the paintpoint from seller is i sell the product to clients but cannot receive the money. Then Ant financial play the role of middle guarantor.
When ant financial got 10 billion users from this serive, they start to offer a financial product -YuEbao.
Because when you got clients, you own large data, you will start to think, what is the majority of users persona would be, what they want?
Data tell us buyers spend around 1500 dollars annually, if these money could be collected, we could offer them public funding product and acquire some revenue, or offer S-T loan.
04 Strikers always makes more money than defenders
It is same in fintech market, help clients earn more money rather than figure out how to help them save cost.
If there are three types of companys: one offers cloud service, one offers risk management solution and one offers the service on how to find more clients. The last one will be more easily to be successfull as they are more aggressives.
In addition, if focus on publick market, in china, the vision at least penerstrate to the third, the fourth tier cities. In these scattering small cities, there is a huge potential groups of users.,
To summarize how to break thourh in china fintech industry:
1. Concentrate single users' demand could create higher value
2. Find public market and high frequent demand in publick market
3. Cut over from the weakness in traditional financial institution, seek new opps.
4. Be aggressive, start from helping users earn money.
Three key in china finance market: Account, licence, Channel.
Source:<库洛区块链>
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