"Multi-win" only exists in logical deduction.
In reality, “small loans” swept the sinking market by relying on the huge flow of various APPs, and the results may be destructive.
Nowadays, borrowing money has become a "comfortable" thing?
According to media reports, opening the commonly used apps on mobile phones, whether for shopping or entertainment, or even tool apps such as "Meituxiuxiu", "Business Card Almighty King", etc., can almost be borrowed by merchants. The gimmicks such as "low daily interest rate", "delivery in seconds" and "zero threshold" attract borrowing.
Some netizens joked that "the end of the Internet is borrowing," and it is not without reason.
According to incomplete statistics, 70% of the top 20 mobile apps provide access to loans.
Just as some citizens complained, "Does any APP eventually become a lending software? I just want to simply order a takeaway, take a taxi, and don't induce me to borrow money."
It is conceivable that, from the perspective of the entire industry, in the face of these advertisements with hundreds of millions of exposures every day, even with a conversion rate as low as one-thousandth to one-tenth, small loan companies can earn huge amounts of interest. All kinds of apps promoted by it can also be allocated a near-zero cost "commission."
From the perspective of users, the low threshold and high convenience of online lending just meet the needs of users who are in urgent need of funds but cannot obtain services from traditional financial channels.
There is demand and supply, and each takes what it needs. This seems to be a multi-win incremental market.
However, "multiple wins" only exists in logical deduction.
In reality, "small loans" swept the sinking market by relying on the huge flow of various APPs, and the results may be destructive.
You must know that funds always have a cost, and users must never expect to get low-interest loans through the APP.
Part of the money of small loan companies comes from the capital of shareholders, and a large part of it comes from borrowing from other people or institutions.
The capital required to have a higher return, and the borrowed money must pay interest. In order to earn the "interest difference" and cover the marketing expenses of APP promotion, small loan companies will certainly charge users much higher interest, but in order to avoid Let the high interest "scare away" users, so they generally borrowed the blind method of "daily interest" or packaged various interest costs into so-called "service fees."
Users should understand that once borrowing money from a small loan company, it will inevitably mean higher interest costs.
From a national perspective, the development of personal financial services is to promote consumption. If financial capital grabs too much profit, it will actually erode the consumption potential of residents.
Moreover, small loans also hide unpredictable default risks.
Traditional financial institutions will provide users with loan services based on income, existing credit status, property status, etc. Although cumbersome and demanding, standard contracts and strict supervision mean that users can predict the results of default (distrust or The mortgaged property is enforced).
However, small loan companies have different qualifications, poor management levels, and different collection methods and strengths. Once users default, will they encounter extreme situations such as high penalty interest and violent collection?
Users should think twice before clicking "Agree to Borrow".
At the same time, users should pay special attention to the fact that various familiar apps should not be the basis for borrowing money. They do not bear the main legal responsibility as traffic intermediaries. Don't expect these apps to screen out "high-quality" borrowers for you.
The more serious consequence is that excessive borrowing can also lead to other risks.
In order to compete for users, small loan companies may use various means to "tempt" borrowing, and they often do not check whether users have the ability to repay.
Many tragedies of over-borrowing started from a small amount of money, but eventually turned into a "snowball" type of long-term borrowing of "dismantling the east wall and replenishing the west wall", and small loan companies do not have all the user's information , It is difficult to avoid similar risks.
How to avoid harm?
For users, understanding the nature of various apps rushing to lend you money, and a reasonable assessment of their own capabilities, is the best way to protect themselves.
Chengdu Commercial Daily-Special Commentator for Red Star News
Kong Fang brother