Podcast note: 3. Fintech Startup in China
This blog is the note and review about the podcast for 互联网金融在中国 in 疯投圈.
They mentioned a points:
in the United State, Fintech is driven by tech while in China, Fintech is driven by tech and finance demand.
The reason why it is different is that the traditional finance is more comprehensive in the United State than in China.
That means the potential business in China is more than in the United State.
For an example, in China, there are less credit information about individuals than the United States.
in the United State, Fintech try to make Finance more efficient., focusing on Tech.
in China, Fintech try to not only make Finance more efficient but also satisfy the unsatisfied demand by current finance industry, focusing on Finance.
Opportunity of startup
Consumer Finance -> stimulate consumption and figure out the user case, target on uncovered target (village, students, people in the secondary cities) — > risk is the unknown risk of these people -> credit card
small business (supply) finance -> small business (direct investment, indirect investment)
Insurance -> the insurance coverage is pretty lower than other countries (Japan, the US). Maybe the new solution is for insurance for business but
The goal: satisfying the unfulfilled demand of traditional finance.
Why startup can solve the problems traditional finance cannot solve?
Traditional Finance is good at saving, investment, stock, fund.
Traditional Finance does not want to solve the demand because high risk and low profit, which giving startup opportunities.
What requirements for startup to solve the problem big bank do not want to solve?
- Finding someone with strong finance domain knowledge. Connecting with Capital One.
- Finding some business with similar experiences about consumer scenarios.
What interesting project do they invest?
- C2C based platform but move forward to finance management and having a cofounder with McKinsey Finance background.
- service for PE (private equity)
- solving for Accounts receivable for business
- solving credit card business for the unsatisfied people
- finance + media for the people with investment demand