Research On The Profit Model Of Network Lending Platforms

Network lending has been introduced to China for nearly a decade.With the rapid growth of its volume,the industry losses year after year rather than rises steadily in profits.If a business has to come across the "profit point",it is clear that most China's network lending platforms are being trapped in this growth path.This article analyzes the case of "Yirendai".It is one of the few network lending platforms that publicly disclose their performance and achieves the most profits among them.It provides valuable experience for other platforms to draw on.This paper first reviews the overall development of China's network lending industry,and analyzes the current situation of profitable platforms as well as the pros and cons that affect the profitability.Then,this paper takes"Yirendai"as a case and uses qualitative analysis,case analysis and comparative analysis to study its profit model from six aspects such as income composition,cost structure,profit growth point,profit object,measure and barrier.At the same time,this paper also studies non-compliance areas,mainly in tje "Yidingying" products,quality assurance services terms and default risks.According to the analysis of the profit model in"Yirendai",this paper puts forward some suggestions for the development of other network lending platforms:(1)improve the flexibility of revenues,and pay attention to the products'risks;(2)reduce the cost and improve the acquisition ability of high-quality assets;(3)focus on vertical subdivision and differentiate from competitors;(4)have accurate customer positioning,both in popularity and customer sticky;(5)better risk control measures and more information disclosure;(6)build big brand value to improve status.