Evaluation of the Fund Depository Business of Huaxing Bank P2P Online Loan Platform

According to statistics from the Big Data Research Institute, as of March 29, 2018, there were 806 online loan platforms in normal operation across the country that had online bank fund depository systems, accounting for 49.03 of total platforms. Among them, Huaxing Bank has the largest number of fund depository platforms connected and launched, reaching 92.

In order to enable everyone to have a detailed understanding of the business development and usage experience of the “largest bank depository account”, the Big Data Research Institute conducted a statistical analysis on Huaxing Bank’s depository access platform and conducted a special Evaluation of the use of capital deposit accounts.

1. Huaxing Bank’s capital depository business development situation: the most access, a mixed bag

Guangdong Huaxing Bank was approved by the relevant ministries and commissions of the State Council and was innovatively established in August 2011 in accordance with the law. A mixed-ownership commercial bank with a registered capital of 8 billion yuan, its registered place is in Shantou Special Economic Zone, and its operational headquarters is in Guangzhou. At present, 8 first-level branches have been established in Guangzhou, Shenzhen, Foshan, Dongguan, Shantou, Jiangmen, Zhuhai and Huizhou. As of the end of 2017, the bank's assets exceeded 150 billion yuan.

From a scale perspective, Huaxing Bank is not conspicuous among the "Big Macs" in the banking industry; but in terms of online loan platform fund custody business, Huaxing Bank is firmly in the "top spot" ”, as of March 29, 2018, it has accessed 92 platforms. Through statistical analysis, it can be found that these platforms vary in size, background and qualifications, and have a wide geographical distribution.

1. Analysis of access platform operation time: mainly 2-3 years, some access platforms have been established for less than 1 year

Figure 1: Huaxing Bank access fund depository platform Distribution of operating hours

Data source: Big Data Research Institute

As of March 28, 2018, among the 92 platforms listed on Huaxing Bank depository, 2 platforms have few operating hours In 1 year, 3 platforms have been operating for 1 year, 30 platforms have been operating for 2 years, 46 platforms have been operating for 3 years, 7 platforms have been operating for 4 years, 3 platforms have been operating for 5 years, and only 1 platform has been operating More than 6 years.

2. Background distribution of shareholders of Huaxing Bank’s depository platform: mainly private companies

Figure 2: Background distribution of shareholders of Huaxing Bank’s capital depository platform

Data source: Big Data Research Institute

As of March 28, 2018, among the 92 platforms listed on Huaxing Bank, 3 platforms have received venture capital; 8 shareholders have state-owned assets backgrounds; The background of 3 shareholders is listed companies; while 78 platforms are private companies.

3. Geographical distribution of Huaxing Bank’s depository platform: Shenzhen, Guangzhou and other local platforms are the main force

Figure 3: Geographical distribution of Huaxing Bank’s access fund custody platform

Data source: Big Data Research Institute

As of March 28, 2018, among the 92 platforms listed on Huaxing Bank custody, Shenzhen had the most, with 43; followed by Guangzhou, with 14 There are 11 companies in Beijing and 5 companies in Shanghai. In addition, Hefei, Ningbo, Chengdu, Dongguan, Wuhan and other cities also have platforms online for Huaxing Bank depository. Considering that Huaxing Bank is headquartered in Guangdong, non-Guangdong regional platforms may face challenges from the principle of localization.

4. Distribution of paid-in capital of Huaxing Bank’s depository platform: mainly small and medium-sized platforms

Figure 4: Distribution of paid-in capital of Huaxing Bank’s access fund depository platform

Data source: Big Data Research Institute

As of March 28, 2018, among the 92 platforms hosted by Huaxing Bank, the number of platforms with paid-in capital of less than or equal to 20 million accounted for 32.93, of which The paid-in capital of some platforms is less than 5 million; the number of platforms with 20 million (exclusive) to 40 million accounts for 14.63; the number of platforms with 40 million (exclusive) to 60 million accounts for 37.8; the number of platforms with 60 million (exclusive) to 80 million The number of platforms with a capital of 10,000 accounted for 2.44; the number of platforms with a capital of 80 million (exclusive) to 100 million accounted for 10.98; the number of platforms with paid-in capital greater than 100 million accounted for 1.22.

Data source: Big Data Research Institute

As of March 28, 2018, among the 92 platforms hosted by Huaxing Bank, the proportion of platforms with a cumulative transaction volume of less than 50 million 6.02; the number of platforms between 50 million (exclusive) and 100 million accounts for 6.02; the number of platforms between 100 million (exclusive) and 500 million accounts for 28.92; the number of platforms between 500 million (exclusive) and 1 billion accounts for 21.69; The number of platforms between 1 billion (exclusive) and 2 billion accounted for 2.048; the number of platforms between 2 billion (exclusive) and 5 billion accounted for 1.084; the number of platforms exceeding 5 billion accounted for 6.02.

Figure 6: Distribution of the total amount to be repaid via Huaxing Bank’s capital depository platform

Data source: Big Data Research Institute

As of March 28, 2018 , among the 92 platforms hosted by Huaxing Bank, the number of platforms with a balance to be repaid is less than 50 million, accounting for 27.69; the number of platforms with a balance of 50 million (exclusive) to 100 million accounts for 23.08; and the number of platforms with a balance of 100 million (exclusive) to 300 million The number of platforms accounted for 3.231; the number of platforms between 300 million (exclusive) and 600 million accounted for 1.231; the number of platforms between 600 million (exclusive) and 1 billion accounted for 3.08; the number of platforms exceeding 1 billion accounted for only 1.54 .

6. Summary

Data analysis from the operation time, shareholder background, location, paid-in capital, cumulative transaction volume, balance to be repaid, etc. of the online Huaxing Bank fund depository and online loan platform It can be seen that the platforms that Huaxing Bank has access to vary from good to bad. Some platforms have been operating for less than a year, and the cumulative transaction volume is only a few million. Most of the platforms that Huaxing Bank has taken over are privately owned and do not have strong shareholder backgrounds, so there are certain operational risks. According to media reports, three of the platforms connected to Huaxing Bank are currently closed, and five are experiencing cash withdrawal difficulties. Although regulatory regulations do not require banks to be responsible for the operational security of online lending platforms, from the perspective of maintaining their own goodwill, they also need to pay attention to the access and daily monitoring of access platforms.

2. Huaxing Bank’s capital depository user experience: the process is compliant, but the experience needs to be improved

This time, the entire process of Huaxing Bank’s capital depository account user experience includes opening a depository account, Real-name authentication, successful account opening, bank card binding, top-up, investment, cash withdrawal and other steps.

1. Open a depository account:

The author chose a certain platform to experience. After successfully registering on the platform, you can directly open a custody account. After entering the name and province certificate, the page jumps to the account opening page. On this page, the user needs to check that he has read the "Guangdong Huaxing Bank Depository Sub-Account Opening Instructions" and the Guangdong Huaxing Bank Individual Online Lending Institutions Customer Fund Depository Business Third Party Agreement 》 and other contracts.

2. Real-name authentication:

Users need to upload photos of the front and back of their ID cards for real-name authentication.

After the photo is uploaded successfully, you need to wait 1 to 2 minutes for the platform to review the ID card information.

The page then jumps to the identity information confirmation page. At this time, there is no need to manually enter it. The user only needs to confirm that the information is correct.

After the information is confirmed, you need to set a transaction password. During this step, you will receive a SMS verification code sent by Huaxing Bank. The author wasted a lot of time on this step. The main reason is that you need to install the control and use IE browser. The platform recommends using IE browser to complete the deposit account opening. The author did not use IE browser at the beginning, and problems such as being unable to refresh the page occurred during use. Then I changed to IE and downloaded the control, but I couldn't refresh the page after the download was completed. I had to go back and forth several times before setting it up successfully.

3. Successful account opening:

After the account is successfully opened, Huaxing Bank will provide a 19-digit virtual account. The account opening behavior is Huaxing Bank Guangzhou Tianhe Road Branch.

4. Bind bank card:

After the account is successfully opened, you need to bind a bank card. Huaxing Bank recommends that only one bank card be bound to an account, although it is to ensure the safety of user funds. Consider, but it also affects the user experience. The payment channels supported by Huaxing Bank's depository system include CICC, UMF, Yipay, etc. The author has observed that different payment channels support different bank cards and have different single transaction limits and daily cumulative limits. For example, the China Merchants Bank chosen by the author has a single limit of 1,000 yuan and a daily cumulative limit of 10,000 yuan. The limit is relatively low and the investment experience is poor.

5. Recharge:

The platform does not support fast recharge with some bank cards. For example, the China Merchants Bank chosen by the author requires transferring funds to Huaxing through mobile banking, online banking, counter, etc. in a bank deposit account. The author chose to recharge through China Merchants Bank’s mobile banking, and the recharge was credited to the account in real time. During the recharge process, you will receive a recharge SMS verification code sent by Guangdong Huaxing Bank. The recharge process needs to be implemented through mobile banking, web pages or over-the-counter transfers bound to bank cards, which increases the transfer steps and reduces the lender's willingness to recharge. In addition, some banks have low recharge limits, which affects the recharge and even investment experience.

6. Investment

After entering the investment amount and clicking Confirm Lending, the bidding confirmation interface will pop up. After entering the transaction password, the investment is successful. There is no need to pass the mobile phone verification code, and the transaction is convenient, but it is easy to place the wrong bid.

7. Withdrawal

Enter my account, select Withdraw, and you can withdraw money directly. You can choose to expedite the withdrawal if the amount is greater than 50,000, and the entire withdrawal process is free. The author's withdrawal process was relatively smooth and the funds were received in real time.

8. Summary

Based on the overall process, the account opening, top-up, investment and withdrawal process of opening a Huaxing Bank depository account are relatively simple, and the process design includes jumping to the bank page, SMS Authentication, opening sub-accounts and other key steps, but some platforms require the installation of controls when setting transaction passwords, and browser incompatibility issues may occur, requiring you to change the browser and re-operate. When bidding, you only need to enter the transaction password to bid directly, and it is easy to place the wrong bid. However, the recharge process is relatively troublesome and requires the use of mobile banking, online banking or over-the-counter transfers bound to bank cards, and there is no fast channel. There is no charge for recharging, but the per-transaction limit and daily limit are relatively low, which affects the investment experience.

Just enter the withdrawal amount and transaction password when withdrawing money. Small-amount withdrawals will arrive in your account in real time, while large-amount withdrawals generally take 0-2 working days to arrive. The handling fee is low, and the experience process in this link is relatively small. More fluid.

3. Evaluation summary of Huaxing Bank’s fund custody business

Huaxing Bank’s fund custody business is developing very rapidly, and there are many access platforms, so it is inevitable that there will be uneven platforms. And there have been cases of operational difficulties. For Huaxing Bank, it is urgent to establish a complete institutional access and early warning monitoring mechanism.

From the perspective of user physical examination, Huaxing Bank’s business process settings are relatively complete and standardized, but the experience of account opening and card binding is not smooth enough, which will bring great frustration to users and needs to be improved; relatively speaking The subsequent investment process experience will be more reasonable.

Since its establishment in 2015, the Big Data Research Institute has aimed to help the healthy development of the industry, focusing on in-depth research and industry data accumulation in the field of financial technology. Based on the integration of finance and technology, it has proposed big data technology One-stop regulatory technology solutions, creating a professional consulting team and industry development think tank.

The Big Data Research Institute has long-term monitored P2P online lending industry data, and established a financial risk laboratory in cooperation with Renmin University of China to create a P2P risk monitoring system. The online loan rating research team has launched 13 consecutive online loans. rating, and gain wide dissemination.