In the supply-side reform, the most important thing is to link demand with supply. All enterprises need to face the consumer market. If the demand of today's market is in risk management, then the leasing company belongs to the financial institutions in the non-bank system should meet this demand, upgrade itself from simple capital premium to risk premium, and establish a good credit risk management system.

The ability to quantify credit risk management is probably the small market. Small market is not a special product independent of finance, but in line with the central bank governor Yi Gang's emphasis. Finance provides professional services through the law of large numbers to reduce risks and disperse risks, so as to achieve the purpose of risk management. Many people mentioned that Xiaowei intuitively felt that their organizational structure was not suitable for Xiaowei. I often mentioned in consultation or lectures that what we need now is not to choose products and track, but to understand that the market has changed, and that the only thing that remains unchanged is the nature of finance. So we need to innovate, to create value, to meet the needs of the market. So of course not everyone has to choose a track like Xiaowei, but ask yourself, is our current organizational structure suitable for the needs of the current market? When the market changes, the design of the organization will have to change. Of course, not necessarily the whole organization changes, it may change a part every year, but from a three-to-five-year perspective. Maybe it's all changed.

The essence of finance is competitive service industry. First of all, we need to separate the market from the bank. One dollar of the bank and one dollar of our bank are all money. So what kind of different services should we provide? We can't always fight with the bank in price war. Usually there are several directions, one is higher risk appetite, the other is under the customer group. Thirdly, efficiency. The three directions also need to upgrade the credit risk management system, change the organizational structure, and be more professional, that is, to meet the needs of the market.

Many people are thinking about how to improve their wind control, but I seldom hear people talking about what the market needs, and seldom hear people talking about the realizability of risk pricing. In the attitude of Party A, we will encounter a misunderstanding. The product conforms to the risk preference of shareholders and the risk management system conforms to the theoretical perfection. However, for such a product, the market does not need it so much. Next, there will be infinite quarrels between the front desk and the middle desk. For example, many people are talking about supply chain finance, among which there are many theories and plans, but they haven't thought about a very simple question. Why should core enterprises choose us instead of banks or do it by themselves? If there is no independent credit management system and risk identification ability for small and medium-sized enterprises, leasing companies can. What value is created? It is worth mentioning that it is impossible to draw a picture of the operation of small and micro enterprises only by the transaction data of the core enterprises, because small and micro enterprises usually do not only deal with a core enterprise, nor are they necessarily only on an industrial chain. Therefore, only the data of a core enterprise can not give a full picture of the small and micro enterprises, but only the data of a core enterprise. Confirmation of the authenticity of transactions only accounts for one of the five principles (5P) of credit evaluation, so there is no way to manage credit risk.

Before referring to the strategic planning of Xiaowei, we should first point out that the difficulty of Xiaowei lies in the balance between risk and activity-based cost. Generally speaking, small and micro enterprises are good penetrators. Compared with large enterprises, small and micro enterprises are more complex, and their business is simple and easier to penetrate. However, due to the high degree of information asymmetry, credit methods need to consider more softness. Factor, need more labor, that is, more activity-based costs. So the minor pain point is not the difficulty of wind control, but the balance between risk and activity cost. Small and micro enterprises do not necessarily have worse performance than large enterprises, just like small boats may be able to row faster, but the waves are easy to shake, because the ability to resist risks is weak, so we need to design the corresponding risk premium, but the design of high prices is prone to risk adverse selection dilemma. That is, we set an average expected loss rate, but good customers are not willing to accept higher prices, so customers who rush to borrow money are likely to be relatively high-risk customers. Without an effective passenger acquisition system, it is also prone to adverse selection of risk, which needs to be supplemented by higher identification cost, that is, higher activity cost. That is to say, Xiaowei is a high-cost business, not easy to do, but good will also become a high profit.

The essence of Xiaowei's strategic planning is to provide solutions (TCS) to enterprises, providing incentives and value creation. It's not about finding a customer who is short of money and stuffing it in his hands. Instead, it's about creating customer needs. For example, when it comes to the small passenger acquisition system, some people may intuitively think that it is a dirty and laborious re-operation mode, but in fact, many of the small and micro enterprises first contacted with leasing are not really short of money, but because of the salesman who finds that an additional amount of money on hand can maximize the benefits of the funds on hand. Change. The underlying reason for the slightly surprising performance of the high net interest margin is that the value is greater than the price, rather than trying to lower the price to find customers at their corresponding risk or simply reducing the cost (BP).

Implementing these in the organizational structure is the construction of the customer acquisition system. The customer acquisition is not to find the customers who are short of money. If it is only to find the small and micro enterprises that are short of money, it is not necessary to find them. The construction of customer acquisition system seems simple on the surface, but it is actually a systematic project, involving product design, team building, compensation structure, how to connect the whole front, middle and back-end organizational structure and embedded in the overall credit risk management system. That is to say, Xiaowei is not only pursuing the scale of per capita capital management, but also pursuing to improve the economic profits of customers, and finally transforming into the operating results that are higher than 20% ROE and 4.5% ROA for a long time.