21st Century Business Herald reporter Yang Mengxue reports from Shanghai
Recently, LuJinSuo announced that starting from January 1, 2024, the "LuJinSuo" APP will be officially renamed as the "LuJinSuo Fund" APP. Regarding the renaming of the APP, LuJinSuo Holdings told reporters that the main focus is on strategic adjustments to the LuJinSuo APP. The rights and interests of customers themselves will not be affected, and a professional team and window will continue to provide customer service.
The former top P2P institutions began a difficult transformation after the retirement of related businesses, with wealth management, transformation loan assistance, technology development, and overseas expansion becoming common directions. Industry analysts say that in the context of stricter regulatory direction, if a company has expertise in customer acquisition or risk control at a certain level, it can still seek development opportunities. For mid-range companies, they can be small and beautiful, while top institutions have more resources and can also open up markets through differentiated competitive strategies.
App renaming reflects strategic focus
According to the announcement released by LuJinSuo, after the "LuJinSuo" APP is renamed as the "LuJinSuo Fund" APP, fund services will be provided by Shanghai LuJinSuo Fund Sales Co., Ltd. The non fund assets in the user's LuJinSuo account need to be queried or managed through the LuJinSuo WeChat service account (【 LuJinSuo Service Account 】). This change will not affect the amount of assets and points held by the user.
Regarding the renaming of the APP, Lu Kong told reporters that the main focus is still on strategy, adjusting the Lu Jin Suo App without affecting customer rights. There is a professional team and window to continue providing customer service.
As a former leading P2P institution, while fully withdrawing from P2P business, Lujin has also undergone several years of business transformation.
Financial technology expert Su Xiaorui analyzed to reporters that, unlike other institutions, Lujin Exchange, due to its strong shareholder background, has attempted to transform into a comprehensive internet financial service platform that combines wealth management, funds, and loans. After resolving the existing P2P business, we have also experimented with internet deposit sales and other businesses. With the help of the large number of users accumulated in the P2P field, we actively laid out in the field of internet deposit sales. At that time, our comprehensive service platform business was similar to that of internet platforms such as JD Finance and Du Xiaoman, and we had achieved good results. However, with the introduction of regulatory regulations such as the Notice on Regulating Commercial Banks to Carry out Personal Deposit Business through the Internet, commercial banks have been suspended from carrying out fixed deposits through non self operated online platforms, leading to the loss of C-end users. At the same time, Ping An's loan business has also encountered difficulties and asset quality challenges. Therefore, it has chosen to eliminate various past "burdens" and focus on developing fund business, It is a realistic move by Lu Jinsuo standing in front of a crossroads.
From the perspective of its business development history, Lujin, founded in 2011, started with P2P business and its existing assets of online loans exceeded 300 billion yuan at one point. After experiencing the rise and fall of the industry, by 2019, Lujin actively cooperated with regulatory authorities to implement the "three reductions" requirements for online lending and fully withdrew from P2P business. From the information disclosed in the financial reports at that time, small and micro enterprise loan business, wealth management business, etc. were all directions for its transformation.
In October 2020, Lufax Holdings landed on the New York Stock Exchange, becoming the largest fintech IPO in the US stock market at that time. Until the end of the second quarter of 2021, Lufax Holdings disclosed in its financial report that the historical proportion of P2P business in Lufax was 0, basically achieving zero.
In April of this year, Land Holdings went public on the main board of the Hong Kong Stock Exchange, becoming another Chinese concept financial technology stock to return to Hong Kong for listing. At that time, Lujin Holdings stated that having a dual primary listing position on the Hong Kong and New York Stock Exchanges was beneficial for the company. The two markets attracted investors from different backgrounds, which helped expand the company's investor base and increase the liquidity of its shares. At the same time, the Hong Kong listing can coordinate with the company's business with a focus on China, which is crucial for the company's growth and long-term strategic development.
The transformation directions mentioned include the financing model of cooperation with banks, consumer finance business, etc., while focusing on precise support for small and micro enterprises and key populations in key areas, strengthening risk control, and improving production capacity and efficiency.
The Transformation Path of Former Top P2P
In addition to laying out wealth management businesses, transformation assistance loans, promoting technology, and expanding overseas have all become the transformation directions chosen by former top P2P platforms. Su Xiaorui believes that in the context of stricter regulatory direction, if the company itself has expertise in customer acquisition or risk control at a certain level, it can still seek development opportunities. For mid-range companies, they can be small and beautiful, while top institutions have more resources and can also open up markets through differentiated competitive strategies.
In terms of loan assistance business, multiple institutions are experimenting with different business models. Taking Lujin as an example, it adopts a model of credit guarantee insurance and financing guarantee amount credit enhancement, sharing credit risks with most of its loans and credit enhancement providers.
Meanwhile, these companies that are still in a period of transformation are also continuously strengthening their "technology" labels.
In November this year, Jiayin Jinke announced the renaming of Jiayin Technology while releasing its third quarter report, stating that it will comprehensively focus on its technology strategy. As early as three years ago, Jia Yin Jin Ke's P2P platform You Wo Dai announced that its parent company, Jia Yin Jin Ke, had transformed into a financial technology company that provides a one-stop internet credit solution for licensed financial institutions through a big data-driven cloud service platform and financial risk control system, when the loan balance was reset to zero and all lending user principal and expected income had been redeemed.
Earlier, after the integration of Yiren Loan, it was renamed as Yiren Jinke, and Paipai Loan was renamed as Xinye Technology, among others, continuously weakening the financial label and strengthening the technology label.
In addition, some companies have also launched a "going global" strategy. Taking Xinye Technology as an example, the financial report disclosed in the third quarter showed that Xinye Technology's international business revenue contributed 585 million yuan, a year-on-year increase of 67.3%, accounting for 18.3% of the group's total revenue. Xinye Technology stated that since the beginning of globalization in 2018, it has established a highly localized fintech platform in Southeast Asian countries.