Original title: renting, cosmetic surgery, classes are staged: easy to borrow, who will pay the bill?
The thunder of eggshell apartment makes a group of financial institutions who rush to the scene financial feast find that the seemingly delicious food may have bitter fruit.
On December 4, Weizhong bank, which has been constantly complained by eggshell tenants, issued a loan settlement scheme for rental loan users: after the tenant and eggshell apartment terminate the contract, the prepayment rent owed by eggshell to the tenant will compensate the loan owed by the tenant to the bank, and the tenant’s loan will be settled. The creditor’s rights of the micro banks to the tenants are transferred to the eggshell apartment. The latter’s current capital chain is broken and its solvency is a mystery.
In recent years, there have been disputes over the stages of education, medicine and beauty, and new / second-hand cars. As a result, many financial institutions have lost both profits and brands. As an important starting point for financial institutions to develop consumer finance, scene finance is facing a test.
In the view of Liu Bo, vice president of Xinwang bank, “the essence of scenario finance is to superimpose the transaction risk of scenario and the credit risk of finance”. When transaction risk appears in the scene, it is easy to cause credit risk.
Zhou Wenlong, general manager of Zhongyuan consumer finance, has publicly said that many people believe that the scenario itself can make the flow of funds more controllable, and then the risk will be reduced. In fact, if the risk control ability relies too much on scenarios, it will ignore the fraud and credit risk brought by the B end.
A number of industry insiders have told Caijing that the risk control of b-end merchants has become the key to scene financial risk control. (in scenario financing), there will be more than 50% of the probability that problems will arise from the merchants. Therefore, many companies will have internal control and anti fraud departments, which are mainly for monitoring and checking the merchant side. ” Head of a head of consumer gold company risk control department to “finance and economics” reporter said.
But it is not easy to control the b-end scene. “Financial institutions are passive in the process of expanding the scene. In a specific scenario, there is a great information asymmetry between financial institutions and scene providers,” Che Ning, Deputy Secretary General of the Beijing Institute of network law, told Caijing: “on the surface, it seems that it has reached the final customer, but in fact, its understanding of customers and the grasp of risks still rely on Scenario providers. ”
Eggshell broken, a small number of “lying gun”
After the landlord forced the change of the lock, Yu Sen wrote his own refund certificate, which said that he had paid the rent to the eggshell apartment through the installment loan of Weizhong bank until May 16, 2021, but the landlord asked him to move out on November 22, 2020 on the ground that “he did not receive the rent paid by the eggshell apartment on time, and it has exceeded the latest payment date by 15 days”. On the day of moving, the landlord’s agent gave his landlord a copy of his ID card and real estate certificate, and signed on the return certificate.
Yu Sen’s previously rented eggshell apartment was established in 2015 as a head long-term apartment operator. By the end of 2019, the company had 438300 apartments in 13 cities in China, more than half of which are located in Beijing, Shanghai and Shenzhen. The main business model of eggshell is to sign a house entrusted operation agreement with scattered individual landlords to obtain the right to operate the house. After the house is decorated uniformly, it is rented to young people aged 22 to 30, and profits from the difference of rent and service charge.
In November 2020, the eggshell apartment fund chain broke down, and the rent payment to the landlord was stopped. The landlords who could not receive the rent began to drive away the tenants to reduce the loss. Yu Sen is one of the young tenants who have been evicted. The difference is that his installment loan with the bank is still valid, which means that he is not only forced to move out of his house, but also to continue to repay the rent loan.
The main partner of eggshell apartment rental loan service is micro banks. As of December 1, 161845 eggshell apartment tenants were the bank’s rental loan customers, according to the bank’s announcement. According to Caixin and other media reports, as of November 2020, the outstanding rental loan balance of Weizhong bank exceeded 1.5 billion yuan. In this regard, “finance and economics” reporter to verify the relevant situation, the other party’s reply to all the announcement information shall prevail. According to people familiar with the matter, the above reported data are basically true.
“Compared with that, the net profit of Weizhong bank in 2019 is 3.95 billion yuan. Once the rent loan cannot be recovered, the impact on its performance is not small.” Some people in the financial industry have said so.
But the resistance to rent recovery is not small. Yu Sen told Caijing that he could not accept further repayment of the loan. There are not a few tenants with the same ideas as him. They spontaneously organized to report the bank to the regulatory authorities. According to a report material obtained by the reporter of Finance and economics, the informant thinks that the bank has illegally issued loans and hopes that the supervision will investigate and deal with it. At the same time, Yu Sen admitted that the main purpose of the report was to solve the loan problem.
The pressure on micro banks is obvious. On November 16, Weizhong bank announced the introduction of credit protection policy, which will not affect the credit of rent loan users forced to move out before March 31, 2021; on December 2, the bank announced to extend the credit protection period to December 31, 2023, and promised that there would be no deduction or interest during the period; on December 4, it further introduced a debt transfer scheme: after the tenant and eggshell apartment terminate the contract, eggshell owes the tenant advance payment The rent is used to compensate the loan owed by the tenant to the bank, and the Tenant Loan is settled.
According to the reporter of “finance and economics”, people in the industry are generally not optimistic about the repayment of the loan from eggshell apartment, “mainly no one is willing to accept the dish (eggshell)” now. According to this, many people interpret the behavior of Weizhong bank to transfer creditor’s rights actively as “covering the bottom”. Before the debt transfer plan was introduced, Liu Bo, vice president of Xinwang bank, once commented: “the eggshell apartment is thundering, but the banks lying in the gun are the micro banks.”
Scene of disaster
Why do micro banks lie down? The judgment of the industry is basically the same, and the problem is mainly in the scene side.
The rental loan business of Weizhong bank relies on the housing rental scenario of eggshell apartment, but the business model of eggshell itself has great risks.
According to the eggshell financial report, a large amount of its working capital comes from the rent advance payment paid by the tenant. The tenant pays the rent to the eggshell apartment quarterly, half a year or one year, and the eggshell pays the rent to the landlord on a monthly or quarterly basis. The mode of “long in short out” makes part of the rent advance deposit on the eggshell platform, and eggshell will use this part of funds to collect and store more housing resources for expansion.
As for the rent loan, the tenant applies for the rent loan from the financial institution recommended by the eggshell apartment. The latter pays the remaining rent (usually 11 months’ rent) to the eggshell apartment in a lump sum. The tenant repays the loan to the financial institution on a monthly basis. After the eggshell receives 11 months’ rent advance payment, it pays the landlord monthly or quarterly rent and bears the corresponding loan interest. From 2017 to 2019, the prepayment obtained through rent loan was RMB 940 million, RMB 2.13 billion and RMB 2.75 billion respectively.
A person close to the central bank also told Caijing: “after the expansion of eggshell apartment scale, the loss has become more and more large. The proportion of loss in revenue is about 50%, and if depreciation is deducted, it is about 35%. It’s Ponzi’s financing that is classified according to Minsky’s three types of financing. ”
“In the context of the industry’s frenzied expansion, this is a cash flow race game. Once the capital of the long-term rental apartment company breaks down, it is impossible to continue to pay the landlord’s rent. If the landlord does not receive the rent, he will certainly take over the house. ” Liu Bo pointed out in an article. “And the embarrassment is that the tenant has already paid the rent. At this time, how can you get your loan back… ”
On the other hand, the business model of rent loan also makes the final destination of funds become the blind spot of institutional risk control. Che Ning told Caijing that the core risk point in the rent loan model is that the interests of the four parties, namely, the long-term apartment platform, the landlord, the tenant and the financial institutions, are interrelated. However, in practice, the contract is signed by two parties, and the interest relationship between the four parties is not reflected in law. “The scene side and financial institutions are more of a cooperative relationship, and the actual credit relationship is still between customers and financial institutions.”
In fact, Weizhong bank is not the first financial institution to step on thunder rent loan. As early as 2018, many parents rented apartments, including Haier consumer finance, Huarong consumer finance, Shanxi Merchants consumer finance and other licensed consumer finance institutions were in turmoil.
In this regard, Zhao Weimin, chief market operation officer of Jinshang consumer finance, once reflected that in the deep excavation scenario, Shanxi Merchants’ consumer finance only considered the risk control of C end, but did not consider the risk control of B end, and did not directly connect with the products.
“Due to the information asymmetry among the owners, leasing companies and tenants, the previously compliant” rental installment “is easy to be used by the leasing companies, which becomes a” routine loan “. Specifically, it conceals information from the owners and factoring for financing; for the tenants, it takes advantage of the difference between the upstream and downstream accounting periods to occupy the deposited funds; some” lending “institutions” connive “and so on.” Senior analysts in the consumer gold industry said in an interview with reporters that the outbreak of the long-term rental apartment incident is the immature performance of the market.
The difficulty of the scene: B end risk
The lesson of long-term rental apartment has triggered another reflection on scene finance. Liu Bo directly said that “scenario finance is a false proposition”, and there are some who agree with it, and there is no small voice against it.
Since the rectification of cash loans at the end of 2017, scene finance has replaced cash loans as an important starting point for licensed financial institutions to develop consumer finance. Education staging, medical and American staging were once popular star products in the market. Guangdong securities Hang Seng issued relevant research reports that the most critical risk of consumer finance is the borrower’s credit default risk, and consumer credit with scenarios limits the specific use of funds, and the probability of default of borrowers is small, which is also the mainstream view at that time.
Taking the medical and beauty staging as an example, Liu Bo pointed out that in terms of business model, due to the relatively high gross profit of the medical and beauty market, in addition to the loan interest income, it can also collect customer share from the diversion medical institutions. But in the actual market expansion, it is not the case. It is difficult for a large hospital trusted by consumers to reach a cooperation with it, or even if they cooperate, they can’t receive the back-end customer drainage share to the hospital (in fact, due to the fierce competition, sometimes they need to pay the hospital so that the hospital can give priority to recommending your staged products). In order to meet the needs of market expansion, medical and American institutions will inevitably cooperate with small and medium-sized hospitals. However, the operation of these institutions is not standardized, and some employees even collude with loan fraudsters. The market is so chaotic that it is not easy to control the risk of installment loan.
The reporter of Caijing visited the market in 2018 and found that the major medical and American chain organizations in the market all provide medical and aesthetic staged services to users. For example, Meilai Medical Co., Ltd. mainly cooperates with Baidu financial’s “Baidu Qianqian Hua” and “Fanpu Jinke’s” renmai “to provide users with medical and American staged business; Yixing Yimei mainly cooperates with” Baidu Qianqian Hua “, Jike finance’s” instant installment “and” momodei “of Mimi financial service. However, at present, some third-party platforms have suspended relevant business.
As for the risk of the medical beauty scene, senior executives of licensed financial institutions told Caijing that when they first investigated the medical beauty scene, they found that the scene was very risky, so they resolutely refused to access the scene. “If you want to enter, you have to find the head of the medical and aesthetic institutions, but in fact, we don’t have much say in front of these institutions. On the other hand, there are many disputes in the medical and aesthetic industry, and some users may be unable to repay or refuse to repay the loans, which may lead to bad debts.”
A senior lawyer in the financial industry once disclosed to the reporter of Finance and economics that the disputes in the field of medical and aesthetic staging that they came into contact with included fraudulent loan disputes, dissatisfaction with the effect of cosmetic surgery, disfigurement disputes after cosmetic surgery, disputes over whether the operation can be cancelled after medical and aesthetic staging, and the corresponding rights protection matters. In addition, policy risks also need to be considered. At present, the domestic medical beauty market regulatory policy is not perfect, whether the follow-up regulatory policy is stricter is also one of the challenges facing the industry.
(in scenario financing), there will be more than 50% of the probability that problems will arise from the merchants. Therefore, many companies will have internal control and anti fraud departments, which are mainly for monitoring and checking the merchant side. ” The head of the risk control department of a head Xiaojin company introduced to the reporter of Caijing. A front-line anti fraud worker told Caijing that his main job was to collect evidence to prove that merchants or loan intermediaries participated in fraud.
Zhou Wenlong, general manager of Zhongyuan consumer finance, has publicly said that many people believe that the scenario itself can make the flow of funds more controllable, and then the risk will be reduced. In fact, if the risk control ability relies too much on scenarios, it will ignore the fraud and credit risk brought by the B end. Therefore, the narrow scenario puts forward new challenges and requirements for the risk control ability of consumer finance companies.
Where is the financial road?
How to solve the scene risk control problem?
Some choose to be cautious. “Whether scene finance is” arsenic “or” honey “depends on how each institution considers risks. We are very cautious when we access the scene. We have been in contact with medical beauty, renting houses, decoration and other scenes before. After that, we observed some bad signs, so we all withdrew one after another. ” An executive of a consumer gold company told Caijing that the b-end risk and the C-end risk are not the same thing. Our core competence is in the C-end, so we will not blindly touch the b-end.
However, the establishment of b-terminal risk control capability is still a subject that most financial institutions must face. “With the development of financial business today, which is highly integrated online and offline, it is impossible to continue the business mode of the past, and even the most cautious institutions can not but expand scene finance.” “If you don’t understand it, don’t do it. Large and medium-sized financial institutions can still bear it. For small and medium-sized institutions, what can it do?” he told Caijing
When it comes to scenario risk, regulation is the first topic mentioned.
Liu Bo pointed out in the previous article: “at this stage, in the field of credit, on the one hand, our protection of consumers is insufficient, but on the other hand, it is excessive. The deficiency is mainly reflected in the fact that a large number of non licensed institutions have been in a state of lack of strong supervision for a long time, and finally many consumers’ rights and interests have been violated; on the other hand, the protection of consumers’ rights and interests for licensed institutions is excessive. Once a customer complains to the relevant regulation, as long as there is any defect in the service of financial institutions, it will be corrected. If there are many effective complaints, financial institutions will also be punished by supervision. Society sympathizes with the weak, but the logic of the weak makes financial institutions in a weak position. ”
“If consumer finance wants to be a scene, it can not do without supervision. The supervision here not only means that the CIRC, the people’s Bank of China, but also the housing and Urban Rural Development Commission must cooperate closely with the supervision of specific industries, rather than isolate some real third-party platforms. ” Zhao Weimin, chief market operation officer of Jinshang consumer finance, said when reflecting on the risks of long-term rental apartment scenarios.
Che Ning also believes that the provision of public goods is one aspect of solving the problem. “Regulation can not be managed separately. Scenario finance must go beyond financial business. Many risks are not in finance itself, which requires relevant departments to form a collaborative supervision mechanism.” In addition, he added that special rectification activities carried out by industry self regulatory organizations and judicial institutions are also part of public goods.
In fact, regulation has taken action. In December 2019, the Ministry of housing and development jointly issued the joint development and Reform Commission, the Ministry of public security, the General Administration of market supervision, the Banking Regulatory Commission and the National Network letter office jointly issued the “opinions on rectifying and standardizing the order of the housing rental market”, which stipulates that the rental income of housing rental enterprises can not exceed 30% of the loan amount of housing rent, and that the ratio should be adjusted before the end of 2022. Eggshells have been disclosed in the 2019 annual report that they are ready to meet regulatory requirements by the end of 2021.
Those close to the central bank stressed to Caijing: “from the perspective of responsibility, we should strengthen the main responsibility of financial institutions to prevent risks.” In his view, regulatory measures need to keep pace, but the subject of risk control is still the financial institutions themselves. “Money is released by financial institutions. Policy risk, compliance risk and fraud risk may occur. The main responsibility for monitoring the flow of funds is still in financial institutions.”
Chen Wen, director of the digital economy research center of the school of Finance and economics of Southwest University of Finance and economics, told Caijing that there are also differences in the scene of scene finance. In fact, the scene side under the rent loan mode is also the fund pool side. If the loan of the tenant is directly transferred to the landlord’s account by the bank, there will be no such problem. However, the reason why the long-term rental companies cooperate to carry out rent loan is to a certain extent From the pool of funds, banks have the suspicion of “one eye open and one eye closed” in this area. However, education staging is due to the prepayment mode, which can be solved by bank supervision of the funds formed by students’ loans and transferring them into the accounts of educational institutions in batches according to the training progress. If there is a big problem, it is still the problem of fund pool. We should strengthen the supervision of funds and prevent the formation of funds pool.
“Scenario finance should return to the source of consumption scenarios, grasp the real purpose of loans, ensure that credit funds are used for consumption, and prevent funds from being used for speculation.” The head of risk control of a head consumer gold company in North China told Caijing that the core and significance of scene finance will not change because of one thing, just as we can’t deny the financial innovation of the whole Internet technology because of P2P. At the same time, the risk control of scenario finance is complex. It not only needs to control the C-end risk, but also needs to control the b-end scenario service organization, transaction fraud risk and operational risk in the consumption scenario. Its risk system is systematic and needs to penetrate into the whole process of the consumption chain. Information flow and capital flow need to be visible and controllable in the whole consumption chain.
It is worth noting that financial institutions have begun to re-examine the risks of scenario finance. An internet bank executive told Caijing that eggshell apartment had found the bank to seek cooperation, but its bank chose to refuse after evaluation.