Net merchant Bank was fined 22.365 million yuan behind: frequent changes of executives, performance has been warmer
The financial industry’s recent hefty fines have been bigger than the last.In addition to a written warning, Zhejiang Wangshang Bank Co., LTD (hereinafter referred to as “Wangshang Bank”) was fined 22.365 million yuan, and the nine people in charge of the case were fined 20,000 yuan to 80,000 yuan, according to the administrative penalty information released by the Hangzhou Central Branch of the People’s Bank of China.Mybank said that since the inspection, the bank has been in accordance with the principle of “establishing and reforming, drawing lessons from one example”, comprehensive rectification work, and has completed the rectification of all problems in 2020.Ant Group science and technology innovation board suspended after the storm, Ali is one of the important chess pieces of financial business – network business bank on the storm.This time was again a large penalty by the regulatory authorities, as one of the representatives of the Internet bank, so that the industry attention.01 Fined more than 22 million yuan net merchant bank for “compliance” to pay fines according to public information,The main reason for the online bank’s fine is that in the process of business development, the bank violated the relevant provisions of account management, liquidation management, credit management, financial statistics, and did not fulfill the obligations of customer identification, customer identity information and transaction records, and suspicious transaction reports.In terms of the violation content and the department of the illegal personnel involved, online banking business is involved in the front, middle and background, including anti-money laundering, credit investigation and other areas of the relevant provisions, a wide range.It is worth mentioning that this is the third time in the past two years that the bank has been punished by regulators.On January 19, 2020, MyBank was fined 950,000 yuan by CBRC Zhejiang Bureau for illegal information, and the next day, it was fined 1,591,800 yuan by Hangzhou Central Branch of the People’s Bank of China for violating liquidation management regulations and provisions management regulations.From the perspective of the level of illegal personnel, some grass-roots employees were punished, such as Dong Yino, an online bank credit objection handler;Some senior executives were also dealt with, such as Feng Liang, then vice president and head of product innovation Department of MyBank, and Li Feng, then general manager of cash Management Department of MyBank.This shows that the supervision in this kind of punishment to the responsibility of the people, the use of “double punishment” mechanism – punishment of institutions and people.At the same time, it also reflects the requirement of “three investigations in one case and two levels of follow-up”, and the grass-roots and senior executives who violated the rules were punished.Online bank has been fined for many times, no doubt hit the gun of supervision, the need to strengthen internal compliance management.As one of the first approved private banks in China, Zhejiang Online Commercial Bank, founded in June 2015, was born with a “golden key”. In addition to the support of his “father” Ant Group, Jack Ma’s “circle of friends” has also invested in the bank.Ant Group invested 1.2 billion yuan to hold 30% of the shares at the time of the launch. The other five sponsors, Wanxiang Group, Jinzi Ham, Shanghai Fosun, Hangzhou Heboshi and Ningbo Jinrun invested 720 million yuan, 120 million yuan, 1 billion yuan, 320 million yuan and 640 million yuan respectively, with shareholding proportions of 18%, 3%, 25%, 8% and 16%.After a closer look, guo Guangchang is behind Fosun, Shen Guojun of Intime is behind Jinrun, and Shi Yuzhu, a giant, is behind Dr. He. The relationship between the three and Jack Ma is also common in many media.As for Wanxiang and jinzi ham, are also old zhejiang business enterprises.It is not difficult to find that the network bank was deeply branded with the “Zheshang” gene when it was established.Logically, with the help of Amoy department to tens of millions of small and micro business owners, plus a few other initiated in the hands of resources, a high starting point network business bank performance should be strides forward.In fact, three years after its establishment, by the end of 2018, the total assets of the bank are below 100 billion yuan, which is 95.9 billion yuan, and the loan balance is also hovering below 50 billion yuan, which is 47.68 billion yuan.Compared with the total assets of webank over 220 billion yuan and loan balance of 116.5 billion yuan in the same period, this report is a complete failure.Weak performance has been accompanied by frequent turnover at the top.Since 2018, myBank has changed three chairmen and presidents — Jing Xiandong, Hu Xiaoming and Jin Xiaolong;The president experienced Huang Hao, Jin Xiaolong, Feng Liang.In addition to the frequent changes of the first and second executives, there have been many changes of senior executives, including the secretary of the board of Directors, the chairman of the Board of Supervisors, the chief financial officer and the head of the internal audit department.In addition to the performance factors mentioned above, the suspension of ant Group’s listing and the anti-monopoly investigation of Alibaba also affected the online merchant Bank.03 In the loan balance in the past two years, the proportion of active users continued to decline in business performance, according to the annual report published on its official website after the summary of data shows that by the middle of 2021, net business bank recorded operating revenue of 6.139 billion yuan, a year-on-year increase of 61.55%, net profit of 985 million yuan, a year-on-year increase of 79.09%,In addition to the performance data for 2020 which is not reference due to the impact of the epidemic, the growth rate of revenue and net profit both hit the highest in nearly three years.The excellent performance of revenue and profit is due to the steep growth of the front-end business, especially in the loan balance since 2018.From RMB 47.68 billion at the end of 2018 to RMB 126.91 billion at the end of 2020, the CAGR(annual compound growth rate) is as high as 33.1%. In mid-2021, the outstanding loan scale reaches a new high of RMB 158.774 billion since its establishment, with an amazing growth rate.It is not surprising that the top and bottom lines are doing well given the rapid start of loans and the NPL rate rising from 1.3% in 2018 to just 1.52% by the end of 2020.But beyond the stellar performance, there are worries.The percentage of active users continues to decline.According to its announcement disclosure data, from 2016 to 2020, its service for small and micro enterprises and small and micro business households increased from 2.77 million to 35.07 million, and the user scale increased 12 times in five years.At the same time, the disclosed balance of average household loan in progress doubled from 15,000 yuan in 2016 to 31,000 yuan in 2019 (there was no data on average household loan in 2020).It seems that the data is good, but combining the scale of the balance of loans at the end of 2016 to 2019, dividing the balance of loans and the average balance of household, it can be calculated that from 2016 to 2019, the number of active loans of online commercial banks (standard refers to the users with outstanding loans at the end of the period) is 2.19 million, 1.13 million, 1.83 million and 2.26 million respectively.It is not difficult to see that in the loan active households show the trend of falling after rising.2019 has only just returned to 2016 levels.If we compare the number of active loan users with the number of accumulative service users of small and micro enterprises and small and micro business users at the end of each year, we can get the ratio of active loan users.The ratio fell from 79.2% in 2016 to 10.8% in 2019, which is undoubtedly ugly.Considering the scale of users in 2020 and the difficulty of expanding customers in the context of the epidemic, the proportion of active borrowers is likely to decrease compared with 10.8% in 2019.However, the 2020 financial report did not report the balance of the average household loan.Is this to avoid embarrassment?As China’s financial market opens up, compliance and legal operation will continue to be the focus of supervision.Especially the introduction of private capital and Internet technology into the banking industry, the original intention is to use these “catfish” to stimulate the innovation and competitiveness of the traditional banking industry.But innovation and competition cannot know boundaries.Only by adhering to the two legs of compliance and innovation can the emerging institutions with high expectations, such as Online Bank and Webank, truly show their unique value.