Chinese industry experts do not want online financial companies to build huge sales networks
Chinese financial sector executives have begun to express their opinions with regard to how financial services companies which provide services online only, such as electronic trading firms, online banks and e-commerce entities, should redesign their products to meet the demands of specific client groups. Earlier this week, Haodai.com founder Li Mingshun stated “We are calling […]
Chinese financial sector executives have begun to express their opinions with regard to how financial services companies which provide services online only, such as electronic trading firms, online banks and e-commerce entities, should redesign their products to meet the demands of specific client groups.
Earlier this week, Haodai.com founder Li Mingshun stated
“We are calling for market segmentation of the financial sector so that small online financial companies have no need to build a huge sales network. Instead, some other companies will provide them with capital, risk management services and marketing services. Otherwise, the costs of innovation will be too high for small online financial companies.”
Mr. Li attended a forum which was held by MSXF.com during which he explaine that internet-based financial services providers should commit themselves toward making innovative, individualized products which target different segments of clients.
This refers to specific products such as trading accounts being targeted directly toward their prospective audience, or startup loans which are designed specifically for a certain type of business sector, for example.
At the forum, Liu Zhijun, who is Chief Data Officer at MSXF.com retorted that risk control, product quality and user experience are three important elements which affect the development of consumer finance companies, especially those which provide loans to those who would not be eligable for a bank loan.
This could certainly include peer to peer funding for startups.
Zhang Zhengping, a professor of the school of economics at Beijing Technology and Business University, has advised Chinese companies to develop inclusive finance with a sustainable business model, on the basis of fully understanding refined demands of target clients.
“It means a number of increasingly diversified financial institutions will make innovations by using information technologies, thus providing more diversified financial services to those whose financial demands were not satisfied by commercial banks in the past,” Mr. Zhang concluded.
Photograph: The Bund, Shanghai, China. Copyright Andrew Saks-McLeod
