Be wary of online platforms inducing excessive borrowing
In recent years, consumer financial products on online platforms have been embedded in customers' daily consumption scenes, forming a non-influenced customer acquisition, but it has also caused problems such as financial credit mismatch.
Excessive marketing brings hidden dangers of financial risks, as well as social problems such as excessive consumption and credit default.
In this regard, the Consumer Protection Bureau of the China Banking and Insurance Regulatory Commission reminded consumers to be alert to the hidden risks or traps behind excessive lending marketing.
"One-click loan", "mobile phone number is worth 200,000", "loan becomes rich and handsome in a second"... Recently, "earth-flavored" marketing advertisements frequently appeared on some online platforms, and online lending and other industries have become hardest hit.
These marketing advertisements use "earth flavor" and "wonderful" advertising words to attract traffic, extract customer information, and over-market financial products such as loans or credit card overdrafts, which brings serious financial risks.
In response, the Consumer Rights Protection Bureau of the China Banking and Insurance Regulatory Commission recently issued a risk reminder to remind consumers to establish a rational consumption concept, rationally use loan products, choose formal institutions and formal channels to obtain financial services, and be alert to the hidden risks behind excessive borrowing marketing Or trap.
Excessive borrowing has hidden risks
On the one hand, it is the convenience of being able to quickly obtain consumer financial products, and on the other is the quiet accumulation of financial risks.
In recent years, consumer finance on online platforms has been embedded in customers' daily consumption scenes, forming a non-inspirational customer acquisition, but it has also brought some problems.
In the eyes of many industry insiders, it is of great significance for the regulatory authorities to increase the supervision of Internet consumer finance and promote the prudent operation of Internet financial institutions.
For example, the reduction of credit lines by Huabei and WeBank is conducive to reducing risk exposure and maintaining the orderly development of the consumer credit market.
"From a positive perspective, the sinking of the customer base of Internet consumer finance will help improve the development of my country’s inclusive finance, cultivate the financial literacy and credit awareness of the vast majority of residents, and stimulate consumption potential. For example, in county and township areas, farmers rely on Pure credit consumer credit can obtain liquidity support during the farming season and regulate consumption and production demand." said Wang Jiaqiang, a senior researcher at the Bank of China Research Institute.
However, some Internet financial institutions have limited business experience in the financial field, and excessive marketing can easily lead to financial credit mismatch problems, which brings greater risks.
In this regard, Wang Jiaqiang said that from the supply side, my country’s credit system is still not fully developed and complete, credit information for individual customers is still not comprehensive enough, and the data accumulated by Internet financial institutions themselves also contains data fraud, model errors, and data that cannot be reflected. For issues such as future trends, the level of risk control is difficult to support the large-scale expansion of consumer credit.
From the demand side, consumer credit customers include relatively disadvantaged groups such as students, farmers, and young people in the early days of employment. These groups lack the awareness of financial risks and have an immature consumption outlook.
Blindly encouraging the increase of credit, exceeding its own repayment ability and acceptable consumption level, will lead to social problems such as excessive consumption and credit default.
"Some Internet consumer financial products often lack sufficient loan interest rates and risk warnings. For example, the use of daily interest rates and other calculation methods is not conducive to customers' understanding of the true interest rate and the consequences of default liabilities, and consumer rights have not been effectively protected." Wang Jiaqiang said.
China Postal Savings Bank analyst Lou Feipeng said that in recent years, some online platforms have used excessive marketing to induce users to over-consume, and excessively grant credit to groups that do not have the ability to repay.
When the borrower was unable to repay the loan, the use of violent collection methods caused many social conflicts.
If it is allowed to develop, there is still the possibility of systemic risks, and the remediation needs to be accelerated.
Multi-channel strengthening of regulation
"First, Internet institutions should be licensed for financial services in accordance with the requirements for licensed operations. Second, Internet finance should be regulated in accordance with the principle of applying the same regulatory standards for similar businesses to eliminate regulatory arbitrage." In the future, it is necessary to speed up the regulation of various types of publicity and marketing on online platforms, increase the review and enforcement of Internet financial advertisements, and effectively protect consumers' right to know.
It is a general consensus among industry experts to further regulate financial marketing and publicity behavior.
"Some non-bank institutions or online platforms use their dominant position to make users feel that interest is cheap and borrowing costs are low, which induces or even misleads users to borrow more, but when users repay, they will find that the cost is actually higher than bank loans. Many." said Dong Ximiao, chief researcher of China Merchants Union Finance.
Experts said that in order to further control online platforms to induce excessive consumption, on the one hand, it is necessary to regulate financial marketing and publicity, and carry out marketing and publicity within the scope of financial business permitted by the regulatory authorities; on the other hand, it is necessary to issue detailed rules governing the content of Internet financial advertisements. Standards for the production and publication of Internet financial advertisements.
For example, consumer credit advertisements should clearly and accurately display the annual loan interest rate, and should not be promoted in the form of "daily interest rates" and "daily repayments".
In addition, strengthening industry self-discipline is also an essential link.
Wang Jiaqiang said that Internet finance companies should obey the Internet Finance Association’s membership self-discipline conventions, member management measures and other basic systems, closely liaise with industry associations, and report major business changes or risk events in a timely manner.
"It is necessary to carefully evaluate the risks brought by new businesses and new technologies, fully test consumer finance credit models that rely on Internet platforms to avoid substantial expansion of customer bases and credit lines, and clarify the loan interest rates, risks, repayment periods and Request to avoid false propaganda."
Consumers must protect their credit cards
In addition to regulating the platform, financial consumers themselves should also cultivate the habit of rational consumption.
"Whether it is a business or an individual, credit is an economic ID card, a business card with no expiry date. For the common people, the most important thing is to maintain a good personal credit record. A good credit record can improve personal access to financial services. Possibility and convenience, the price can be discounted.” Dong Ximiao said.
"Establish a civilized and scientific concept of consumption, only indebted for necessary things, for those dispensable consumption liabilities, we should think carefully and do what we can. Excessive consumption and excessive debt are likely to cause huge financial pressure, which will affect personal emotions. And physical health.” The relevant person in charge of the consumer finance company immediately reminded that if personal consumer loans and credit cards are overdue, it may affect personal credit.
Therefore, financial consumers should learn to judge whether individuals are excessively indebted: one is to see whether they can pay off all their debts at one time; the other is to see the large consumption of personal credit cards and online loans.
There is no free lunch in the world.
Experts suggest that consumers should fully understand online platform loans, credit card-like overdrafts and installments and other lending products, be aware of important information such as loan interest rates, deadlines, and repayment methods, and be wary of the so-called "interest-free" and "zero interest" by some institutions or platforms. One-sided publicity.
At the same time, give full play to the role of lending products, establish a sense of responsible lending, and do not over-rely on borrowing for consumption, let alone "financing loans with loans" or "long-term borrowing."
At the same time, the China Banking and Insurance Regulatory Commission also reminded that financial consumers must choose formal institutions and formal channels for borrowing.
Attention should be paid to checking whether relevant institutions have business qualifications to prevent illegal financial activities.
Be vigilant against unidentified phone calls, links, and e-mail sales, do not click on unidentified links at will, and do not provide important personal information on suspicious websites, enhance personal information protection awareness, and reduce the risk of fraud and personal information leakage.
(Economic Daily-China Economic Net reporter Qian Qingni)