Jingdong’s small loan business or online at the end of the year

The concept of Internet finance has become hot. Alibaba, Baidu, Tencent and Suning are all in the layout. Jingdong is not alone. According to reliable sources, Jingdong started preparations for a small loan company in January this year and submitted a license application to the Shanghai Municipal Office of Finance soon. At present, the microfinance company is currently undergoing a registration process and is expected to be officially launched at the end of the year.

According to statistics, since 2012, Jingdong has cooperated with several banks in launching supply chain finance business, and has provided billions of yuan in loans to partners. Today, financial business has become one of the “four carriages” for Jingdong’s future development.

Last year, Jingdong cooperated with Bank of China to launch "Supply Chain Financial Services." Jingdong plays an intermediary role: suppliers rely on their orders in Jingdong, and the one-way Jingdong filing application for financing is submitted to the bank after approval, and then the bank grants loans.

The establishment of the Jingdong Small Loan Company is an extension of Jingdong's "supply chain financial services" chain. Jingdong Microfinance Co., Ltd. serves mainly Jingdong suppliers (self-employed) and sellers (open platform). After the establishment of the small loan company, it will cooperate with JD.com's overall strategy and create a supplier financing and online credit loan with its own business. Complete system.

After Jingdong Microloan Co., Ltd. is established, JD.com will continue to strengthen its cooperation with banks. JD.com will also launch a class-equipment project with the fund company. However, JD.com will not use the class-reporting project as the preferred strategy of JD.com's Internet finance.

JD does not advocate the type of balance-based project in Internet finance. There is a reason for this. Although Yuen Bao and Baidu's financial management have achieved great success, especially Baidu's financial management has attracted much attention, Baidu's financial management is disguised as a high-yield to users. Up to 4% of the annualized yield is paid by Baidu, and Baidu has reported to the China Securities Regulatory Commission that the overall budget will be 300 million yuan.

Analysts pointed out that Baidu took the money to attract attention, the equivalent of spending money on advertising, but Baidu can not always subsidize consumers, relying on high yields is difficult to meet consumers. It remains to be seen how effective this balance treasure model can be.

JD's financial services for suppliers include providing financing and investment services. The financing includes: order financing, warehousing single financing, account receivable financing, entrusted loan financing; investment includes: cooperative investment trust plan, asset package transfer plan.

JD's selection of suppliers is based on the following conditions: 1. The merchandise return rate cannot be large. If the transaction is completed, the goods will be returned. This is equivalent to no transaction between the two parties. 2. JD.com will recommend the supply chain service to communicate with the merchant to see if the business has Funding needs.

After obtaining the credit line, the supplier can reconcile with JD. After the check is correct, Jingdong orders the bank and the bank advances the payment amount to the supplier. After the due date for the billing period arrives, Jingdong will return the payment to the bank, and the supplier will need to pay the fee to the bank, and the interest will be calculated from the time the supplier receives the payment day to the Jingdong repayment date.

At present, the Jingdong Internet finance strategy is advancing, and financial business has been strategically located within Jingdong. Jingdong upgraded the financial sector at the end of last year and set up the Ministry of Finance and Development to take full responsibility for the company's financial business. This department has become a department of Jingdong. Since the beginning of this year, the financial business department of JD has expanded rapidly. From last year, less than 20 people have grown to over 300 people this year.