Zhou Xin has always believed that Internet finance is a big killer, but if it is only through Internet channels to sell financial products directly to users, in fact, there is not much harm.

The harm of Internet finance lies in the products of its development, such as Huabei, which is engaged in by ants, with a paid-in capital of 10.6 billion yuan and leveraged more than 250 billion yuan of loan issuance, or the P2P business derived from Internet finance, which has become an artifact of cutting leeks without supervision.

Moreover, Internet giants have found that it is easy and fast to make money by combining traffic with financial business, and they have focused on this, both in terms of innovation ability and investment in technology research and development.

Even a third-tier Internet company like 360 launched an Internet financial business with the help of traffic in just three years, and its revenue and profit greatly exceeded that of the parent company. Any Internet company that can be named has started to get involved in the financial business.

The first-line Tencent Alibyte, the second-line Sina JD Pinduoduo, the third-line Ctrip Didi 360, etc., have all launched financial services for the public, which is to put it bluntly, lending.

It's 2004, not 2024, and we can't see the harm of Internet finance.

According to the IMF's quarterly newsletter published in the third quarter of 2002, in 2001, 44% of Ameriken's banks supported online transactions and launched a national banking transaction website, at which time they combined electronic channels with traditional bank financial products.

In Spain and Switzerland, there are even more customers who are accustomed to e-banking, with more than 75% of banks offering e-banking.

Even at the beginning of the millennium, there were virtual banks that did not have any offline outlets and only conducted business through the Internet, and there were a total of 30 similar virtual banks at Ameriken.

However, their scale is very limited, the largest number of virtual banking service users is only hundreds of thousands, the vast majority of users use the e-banking website only for balance inquiry, transfer operations, through the e-banking purchase of financial products users are very few, so before the launch of Yu'e Bao, the traditional thinking of financial institutions is that financial business is inseparable from offline, online can only be used as a supplement.

In the past, The Banker's discussion of e-banking has focused more on transaction costs:

"E-banking used to exist for a while in the form of ATMs and telephone transactions, but after the turn of the millennium, the Internet changed it, and the Internet is a new channel for banking services, and both customers and banks can benefit from it, no matter where they are.

In addition, banks can also use the Internet to provide services more efficiently and at a significant cost. When traditional brick-and-mortar bank outlets serve customers, the cost of a single transaction is about $1, while the transaction cost by phone in the nineties of the last century is about $0.6 for a single transaction, and after the Internet era, the cost of online transactions is only $0.02.

At the same time, it is worth mentioning that although e-banking provides a wide range of services, including time deposits, investment products, automated investment, etc., the proportion of demand deposits and withdrawals exceeds 90%.

Traditional bank branches still have value and necessity, and complex businesses are still not so in line with the needs of users."

This is an article published by The Banker in 2001, and a month after the release of Yu Bao, the Banker's discourse on e-banking has completely changed:

In the past, we believed that although banks provided a variety of online business processing, the proportion of business handling other than deposits and withdrawals was not more than 10%, which was because users did not accept the Internet business high enough, and this view was recently broken by the launch of Yu'e Bao by NewPay.

The Yue Bao business, launched in October, has gained more than 20 million users in just one month, more than all the users of all virtual banks in the world combined, and more importantly, it only took a month, and users did not simply deposit money in virtual accounts through NewPay, but bought investment products.

This is worth pondering for all financial practitioners, why NewPay has been able to gain the trust of users and be able to gain so many users. According to the questionnaire survey we conducted last week, more than 70% of the 500 users surveyed who purchased Yu'e Bao have never purchased any financial products before. What makes these users have such a high level of trust in NewPay?

Different people have different answers, and some think: because NewPay has a large number of users, the controller behind it is Newman, and Newman, as the richest man in the world, will not deceive us.

Some people also think that storing money in a virtual account is also saving, so it is better to put it in Yue Bao, and the daily income is clearly visible. In addition, there are also people who believe that because doing business involves a high turnover of cash flow, putting money in Yue Bao can not only enjoy a certain amount of income, but also be very flexible, NewPay, which can complete all operations through mobile phones, is more flexible than any bank to handle business.

NewPay's ambition is far more than that, they launched a one-year US dollar fixed deposit after the launch of Yu Yu Bao, with an annual interest rate of 4.1%, according to our understanding, the underlying logic of this product is a one-year US dollar fixed deposit of Wells Fargo, and if the user directly chooses Wells Fargo for a one-year US dollar fixed deposit, the interest rate is 4.3%.

That is to say, on the surface, NewPay will be able to earn 20 BP from the sale of this product, and if you count the cost of sales of Wells Fargo, NewPay's income will be even higher. In just one week, the amount of fixed deposit business through NewPay has exceeded 100 million yuan, and the specific number of customers NewPay has not been announced. The reason why users would rather choose NewPay with lower interest rates than traditional banks is worth pondering for all banks.

When the traditional banking industry's understanding of Internet business is still stuck in the establishment of websites, NewPay, which is already a behemoth, has announced its arrival to the banking industry through Yu Yu Bao.

For Peter Thiel, fixed deposits are just the beginning, and NewPay has a series of combo punches waiting to be rolled out at the back.

It's not just financial institutions and media that are eyeing NewPay, a large number of investors are also eyeing NewPay, the most noteworthy of which is Madoff, Bernard Madoff, he designed a Ponzi scheme that caused investors to lose almost $65 billion in 08, which is astronomical.

There are many well-known financial institutions that have been recruited, such as UBS, Austrian Bank, HSBC, Nomura Holdings, etc.

In 2004, even Madoff's son didn't know that he was playing a Ponzi scheme, and as the chairman of the NASDAQ, he launched an investment product with a higher rating than U.S. bonds, and no one suspected him of being a liar before 08.

But there are still a handful of people who know the truth, one is his brother Peter, Peter Madoff, and the other is Picault, a longtime partner of Madoff who made $7.2 billion in his Ponzi scheme.

After the success of NewPay's launch of Yue Bao, Madoff approached his brother to discuss: "Can we also engage in Internet finance?"

Using the Internet to raise funds? ”

Peter, as a vested interest, naturally knew that sooner or later the scam would be exposed, as Lincoln said: "You can deceive some people at all times, and you can deceive all people at a time, but you cannot deceive all people at all times." ”

Both Madoff and his brother Peter knew this, and they both had the same idea, and they kept the scam long enough until they died, and they didn't care about him after his death.

But after thinking about Madoff's idea, Peter said: "One of the important ways we used to attract customers was Madoff's high threshold, which required an investment of more than $1 million and an invitation from insiders, which may not be in line with the guidelines for selling Internet products."

From what I know about NewPay's products, they focus on a low threshold, which can be purchased for $1. ”

Madoff has been a little anxious lately because he knows he's about to face a big payout.

As a top scammer, he knows the most about scams, the so-called Beou Group, which focuses on hedge funds, they say it is a hedge fund, but in fact it is also a Ponzi scheme, and Madoff read a message from the Jewish gathering he organized that Beough Group is dying, and their scam is about to run out.

Of course, the Beou Group's scam is far inferior to Madoff's, with a maximum scale of $4.5 billion.

The game of Beou Group is very similar to that of Madoff, the bankruptcy of Beou's scam will cause investors who buy Madoff's fund to make large redemptions, and once a run is caused, Madoff's scam will also be exposed.

As a result, Madoff needs more liquidity, more cash, to support a possible run in the future.

This is no way, Internet finance has given Madoff hope, but before that, he couldn't look at the Internet channels.

Madoff got up in his office and stared at the map on the wall, turned his back to Peter and said, "Peter, this is not for me to do, we need to find Internet channels that are willing to help sell Madoff's financial products."

Then the channel side helps to publicize, and in the public caliber, this becomes a benefit that the Internet channel helps their customers to obtain, and they can buy Madoff financial products that originally required $1 million plus insider referrals to buy at zero threshold.

Do you understand, our active behavior has become a passive behavior, and it has become a vigorous fight for Internet channels to help their customers win.

and the interest rate of less than 3% of Yu Baocai, Madoff's annual interest rate is at least 12%, Wells Fargo's income to NewPay is only 20 bp, at most no more than 40 bp, we can give NewPay at least 200 bp, or even more. ”

Peter thought to himself that his brother deserved to be his brother, and he was still not as sophisticated as him, "NewPay, a financial product with a two-point interest rate, can be sold to so many users casually, if NewPay helps us sell Madoff's products, with the volume of NewPay's 50 million users around the world, we can't help us sell billions casually."

NewPay helps to promote Madoff's past achievements, emphasizing the threshold of Madoff's financial products, and forming the concept of this rare benefit for users. ”

Madoff nodded: "That's right, in order to highlight the special nature of Madoff's financial products, we can also set thresholds, such as other financial products can be bought at any time, and Madoff's financial products have a fixed sales period, after which they can't be bought, we generally pay dividends in February, and the sales period is selected in January."

The proceeds from the sale can be used to pay dividends, while also giving users the impression that Madoff products are reliable and have high interest rates.

In the first year, let NewPay's caliber say that maybe there is only one chance, and then in the second year, it said that there is only this period of sales every year, and the sales period will be fixed in the future.

With the growth of more than 20% per year in the electronic payment market and NewPay's monopoly position in the field of electronic payment, Madoff's capital growth rate can fully cover the amount of dividends. ”

Peter applauded Madoff's genius idea: "I'm going to get in touch with NewPay, and I know their executives. ”

Madoff asked, "And then there's the question, are we going to work with NewPay only, or are we going to find a few more channels to work with?" ”

Peter said: "According to the threshold of Madoff's high standards we created before, it is better to only cooperate with NewPay, after all, NewPay is the best electronic payment company, and now it should be called an Internet financial company." ”

Madoff nodded: "I know Newman, and I will say hello to Newman at the same time." ”

In the bureau of Bill Gates's group, Zhou Xin and Madoff met several times, Zhou Xin was very polite to Madoff on the surface, and even called him the godfather of the investment industry, but every time the godfather mentioned whether to buy Madoff's financial products, Zhou Xin would smile and refuse: saying that he was not short of money, and he preferred to invest his own money than to invest in others.

Madoff does not doubt him, because Zhou Xin's record does prove that he has a sense of smell far beyond ordinary people in the Internet field, and it is normal for him to invest by himself.

Madoff sometimes wonders, if he had a new sense of smell, would he still need to play a Ponzi scheme?

Madoff and Peter split up, Madoff went to contact Zhou Xin, and Peter went to contact NewPay's executives.

After Zhou Xin received a cross-border call from Madoff, he was thinking about what tricks the old fox wanted to play, and after listening to Madoff's so-called strong alliance plan, he sneered in his heart.

Madoff's statement is roughly: "NewPay is expanding rapidly in the field of Internet finance, but it lacks a product that is explosive enough, the interest rate of Yu'e Bao is too low and not exaggerated enough, Madoff can provide financial products with an annualized interest rate of 10%, and the interest rate of Madoff products is at least 12%, and the extra interest rate is NewPay's commission." ”

I had insomnia last night and coughed violently, I don't know why the crow coughs violently at night now, and I feel like I want to cough out my lungs, but I don't cough during the day.

(End of chapter)