After ant group, Xiaomi Xiaojin, a subsidiary of Xiaomi, began to undertake the personal consumer credit business of Tianxing digital branch.
Insiders said that Xiaomi’s adjustment may refer to the plan of ant group. At present, the flower chant and borrow chant of ant group have completed brand isolation and belong to the independent brand of ant Xiaojin. The business of ant’s small loan company has withdrawn from the market in an orderly manner.
At present, the wait-and-see sentiment of the market on how to split finance and technology is increasing. The partial split of financial technology not only meets the regulatory needs, but also makes it easier to comply with regulations. The business boundary is further clarified, which is conducive to solving the problems of regulatory gaps and regulatory arbitrage.
Nowadays, in the context of stricter supervision, Internet finance has gradually bid farewell to the wild era. Xiaomi, which has been deeply cultivated in the financial field for seven years, has won more than 10 financial licenses such as insurance, factoring and banking, and initiated the establishment of Singapore digital banking license with other institutions, basically realizing the layout of full license. It is not difficult to see that with stricter supervision, brand upgrading and other factors, Xiaomi’s business adjustment in the financial field will also be stepped up day by day.
Tianxing digital slimming
According to media reports, recently, the Tianxing digital section of Xiaomi’s financial technology sector is reducing its business line. The report said that as early as years ago, Tianxing digital branch planned to reduce the original 900 person team by 1 / 3, while the original seven business lines will only retain the main lines such as supply chain finance and consumer finance that are still in the rising period.
In this regard, the official response of tianxingshuke said, “There is no reduction in the team of Tianxing digital department. Based on the principle of ‘focusing on the main business and serving entities’, the relevant business lines adjusted their organizational structure in the fourth quarter of 2021, integrating the relevant business lines to form a digital industry finance department and a digital retail finance department. The digital retail finance department consists of a credit technology business department, a comprehensive business department, a payment business department and an international business department 。 The adjustment of the organizational structure is to better form a business force to digitally serve entity enterprises, main businesses and customers, promote the process of industrial digitization and support the development of digital economy. “
Although it responded to the situation that “there is no reduction in the team”, in the past two years, after brand upgrading, business change and personnel adjustment, Xiaomi’s financial business is also constantly adjusting. The latest response of Tianxing digital section said that Xiaomi Xiaojin is orderly undertaking the personal consumer credit business of Tianxing digital section.
According to the Tianxing financial app, the “borrowing with the star” service of Tianxing digital section has been changed to Xiaomi consumer finance, which was previously provided by Xiaomi xiaodai.
According to the skystar financial user service agreement on the page, the agreement is still signed by skystar financial registered users who meet the conditions and can use Xiaomi account service, together with skystar Digital Technology Co., Ltd., Chongqing Xiaomi microfinance Co., Ltd., Shanghai Xiaomi Financial Information Service Co., Ltd., Beijing Houji insurance brokerage Co., Ltd Jiefu Ruitong Co., Ltd. and other affiliated companies of Xiaomi group and their cooperative operation units. It does not mention Xiaomi’s consumption of gold, or it means that the undertaking work has begun soon.
Insiders said that Xiaomi’s adjustment may refer to the plan of ant group. At present, the flower chant and borrow chant of ant group have completed brand isolation and belong to the independent brand of ant Xiaojin. The business of ant’s small loan company has withdrawn from the market in an orderly manner.
In April last year, the people’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of foreign exchange and other financial management departments jointly conducted regulatory interviews with more than a dozen online platform enterprises engaged in financial business, including the Tianxing digital section. It is understood that Tianxing digital Department has submitted several versions of rectification plans to the regulatory authorities.
In recent years, with the change of financial technology regulatory environment, the wait-and-see sentiment of the market on how to split finance and technology has become increasingly serious. Not long ago, the “14th five year plan for the development of financial standardization” jointly issued by the people’s Bank of China, the State Administration of market supervision, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission clearly stated that we should adhere to the strict separation between financial business and non-financial business, clarify the boundary between scientific and technological services and financial business, and prevent illegal financial business in the name of science and technology. At present, it is a trend to split the financial technology part, which not only meets the regulatory needs, but also makes it easier to comply with regulations. The business boundary is further clarified, which is conducive to solving the problems of regulatory gaps and regulatory arbitrage.
more than ten financial licenses
Last October, Xiaomi group’s Xiaomi digital division announced that its brand was upgraded to Tianxing digital division, focusing on the use of digital technology to serve the financial needs of physical enterprises, the transformation and upgrading of financial institutions and individual consumers. At the same time, “Xiaomi financial app” was changed to “Tianxing financial app”, “Xiaomi wallet app” was comprehensively upgraded to “Tianxing financial wallet app”, and Xiaomi wallet express payment brand was upgraded and renamed as Tianxing payment.
Up to now, Xiaomi Department has collected more than ten financial licenses, including consumer finance, microfinance, commercial factoring, third-party payment, private equity investment and insurance. In addition to jointly initiating the establishment of Xinwang bank with New Hope Liuhe Co.Ltd(000876) , Xiaomi also obtained the license of Hong Kong virtual bank Tianxing bank.
Industry analysts said that Xiaomi seems to have been weakening the sense of existence of financial business. It can be seen from the financial reports of previous years that its financial business, in the name of financial technology business, is included in the Internet service sector together with Internet advertising and games. But in fact, the expansion of Xiaomi’s financial territory has never weakened.
According to Xiaomi’s financial report, in 2020, the Internet service revenue reached 23.8 billion yuan, a year-on-year increase of 19.7%. As of June 30, 2021, the revenue of the Internet service sector, including financial technology business, was 7 billion yuan, a record high, with a year-on-year increase of 19.1%.
In terms of financial technology business, Xiaomi disclosed that in the second quarter of 2021, the revenue from other value-added services reached RMB 1.6 billion, a year-on-year decrease of 10.3%, mainly due to its continued strengthening of risk control, active management of the scale of financial technology business and maintenance of steady operation. In the third quarterly report of 2021, the financial technology business in Internet services was not mentioned.
Last March, Lin Zhiwei, vice president and CFO of Xiaomi, talked about the development of its financial technology business at the earnings conference call. He said that in 2020, the growth of Internet business was mainly affected by financial technology business. In the second half of 2020, although the income of fintech business still showed a downward trend year-on-year, the profit margin gradually improved as we gradually turned to platform business.
Compared with the previous earnings conference call, in this year’s interim report, Xiaomi executives did not talk about the topic of “financial technology” business. As for the Internet advertising business, Lin Zhiwei just mentioned that we are also facing some challenges, such as the Chinese mainland market, we see many regulatory restrictions, including the impact of some areas of intensive advertising, and then there is a new data privacy protection act. Of course, we will assess these impacts. But on the whole, we are quite confident in the advertising business. We believe that the advertising business will continue to grow.
