Mobile Internet Helping Chinese Financing Soar to New Heights

According to the official data statistics of Tianhong Asset, Tianhong Asset has cumulatively earned 100 billion yuan (about USD 1.5 billion), which exceeded the yearly GDP of over 70 IMF member countries in 2016, and is 30 percent higher than Facebook's net profits of $10.2 billion dollars in 2016.

Additionally, according to the statistical data from Wind, as of September 30, 2017, the public asset-raising management scale of Tianhong Asset was about 1706.5 billion yuan, ranking first in China's public funds industry. Moreover, Tianhong Asset's users reached 375 million, outnumbering the gross population of the entire United States. From 2013 to June 30, 2017, the user scale of Tianhong Asset has increased rapidly.

It is traditionally believed that Chinese people are diligent and thrifty, being conservative and singular in their investments. Once they obtained money, they would keep it in a bank. In fact, the data shows that the above situation has gradually changed over the years.

The statistical data of BCG Global Wealth shows that total amount of private investable assets of Chinese people has reached 122 trillion yuan. With this available money, the financial management mode of Chinese people has also become more diverse and modern. The 2016 Report on the Development of Financial Services China's Banking Industry showed that, as of the end of 2016, the great scale of the asset management industry in China had reached 116.18 trillion yuan.

As an "upstart" rising sharply in the field of the global Internet, the developmental speed of Internet finance in China is also amazing. The number of people purchasing Internet financial products has reached 500 million, and the scale of Internet asset management has seen eight-fold increase over the last four years.

More Chinese people directly manage their financial matters on a PC and mobile device, instead of going to the bank. Practitioners of Internet finance represented by Tianhong Asset, based on the Alipay platform of the controlling shareholder Ant Financial, have realized efficient interaction and promotion both online and offline, providing their investors with a more efficient and convenient financial experience.

In China's Internet finance industry, Tianhong Asset has set up the industry's first cloud-based De-IOE large settlement system - Tianhong Asset Management Cloud Direct Marketing System. The system can support 100 million users, can facilitate hundreds of millions of transactions within one day, and can handle thousands of concurrent transactions per second with a liquidation time of less than one hour. Even during the online shopping carnival of November 11th, Tianhong Asset Management still had a payment success rate up above 99.99 percent.

With its advanced Internet technology power, Tianhong Asset enables long-tail users (As shown in the following figure: A very small number of individuals (horizontal axis) correspond to very high values (vertical axis), but the number of individuals with extremely low values is the majority of the population. It can be used to describe the tall head in the near axis, and the long tail in the horizontal axis. The emphasis is on the commercial value of the majority of the individuals to enjoy the financial services that they could not previously obtain.

In 2017, Tianhong Asset financial products have more than 100 million rural users in third and fourth-tier cities. Before the advent of big data technology, and because of the cost constraints and technical capability limitations, the financial service needs of a large number of long-tail users in China could not be effectively satisfied.

Financial technology not only helps Tianhong Asset to optimize its user experience in terms of sales, but also plays a positive role in risk control and liquidity management. In order to meet the needs of a "forecast + response" risk control system, Tianhong Asset has internally developed it "Tianyan System" and "Hawk-Eye System".

In terms of the general asset management industry, the "liquidity risk", Tianhong Asset has developed a corresponding technical system, in which the system can clearly predict the flow of funds over the next 30 days, and has achieved excellent performance of its "zero accident" liquidity management.