Case Studies On Ali Microfinance Model

With the growing popularity of Internet banking, more and more electronic business platforms are involved in the financial services sector. Ali small loan is the first small loan companies in the field of electronic commerce to solve the financing needs of small and micro enterprises, and access to the country’s first e-commerce company in the field of micro-credit business license.Ali small loan model refers to Alibaba taking advantage of data to provide fund for platform merchants.By the end of November 2014, Ali small loan has provided more than 300 billion yuan for 1.1 million small and micro enterprises. the average amount is 30,000 yuan, loan period is about 1-2 weeks,overdue loan rate lows to 0.92%, according to an average of 123 days merchant capital occupation time, real interest rate is 6%-7%.Ali small loan model is the industry innovation which internet industry join the financial industry, compared with the traditional financial model, Ali small loan greatly reduces the information asymmetry, solutes the financing needs of small and micro enterprises effectively.On the basis of introducing the case,I analyze the characteristics of small loan comparing to Jingdong financial model, the analysis focus on its loan products, users credit rating mechanisms, platform credit system and risk management system. Ali concluded that the pattern of small loans takes advantage of transaction data, behavioral data and uses big data technology, draws the customer’s credit rating, and ultimately makes the lending decision. then analyze the strengths and limitations of small loans mode.Now China’s small and micro enterprises financing problem has not been solved, because of information asymmetry is the root cause,I analyze the small and micro business financing information asymmetry relations, then briefly introduce Bank small loans mode, then compare the two models with each other in customer resources, risk control means, borrowing costs and credit idea, the conclusion is that Ali small loan model has information and platform advantages to establish a credit rating system and user credit system, reducing the information asymmetry; the same time establish a risk management system, to achieve a low cost, low risk, high efficiency lending, then get rid of the traditional lending model relying on the financial statements, collateral and guarantees.Ali small loan model limitations state as follows: identity is not clear, industry positioning is unclear; funding is restricted; can not be associated with Paypal funds; lending is limited to a single aspect of the industry chain. Finally I conclude remarks, and look ahead to Ali small loan model, the right direction to solve the small loan is co-funding with a bank or other financial institution, at the same time the Ali small loan should open the data platform, shared information resources in the whole society.