We can Meet the Financial Regulation Only When the Main Part of Consumer Finance is the Young People (III)

25 Dec

However, if young people are over-consumption, is it also good to borrow money? This issue should be viewed in two ways:

First of all, from a global perspective, the phenomenon of personal collapse caused by borrowing consumption is a common phenomenon or a case? We have to figure this out. Therefore, the media should not over-render the case when reporting, but should see that if most transactions in consumer finance are not problematic, they will solve people's needs, especially the needs of young people, and help them solve education and other human resources. The need for capital investment is a very good thing. Including the media and regulators, we must avoid exaggerating a very small number of cases, and even prohibit consumer finance, because it will help the entire society, and will help the groups that really need financial support. Secondly, it should be understood that the main body of consumer finance is young people, which is in line with the laws of economics. For the elderly and even many middle-aged people, the meaning of consumer finance is not too big, they do not need the support of these financial tools, and young people have strong consumption needs, it is normal to use some financial tools. Older people do not need consumer financial support because their income potential has been almost the same for a lifetime. The income potential of young people in the future is huge, so consumer finance is aimed at young people to a considerable extent. Pay attention to buy stainless steel pipes.

In recent years, the growing leverage of the private sector is indeed a cause for concern. But for families and individuals, household debt accounts for about 50% of GDP, while the US is 100% more. Because the US financial market is much more developed than China, the tolerable leverage ratio of residents is naturally higher than that of China, but China still has 10% to 20% upside potential, and consumer finance has potential. Moreover, with the improvement of the big data credit system, the advancement of financial technology and the improvement of financial products, the efficiency of financial services will be greatly improved, and the cost will be reduced, so that many people who have not enjoyed inclusive finance in the past can Access to financial services and support. Before the spread of financial technology, traditional financial institutions hasn’t the help of big data and technology, the first is the high cost and the second is the difficulty of the wind control, they tend to serve those with high net worth and assets, however, this does not mean that some people don’t have the need for consumer finance, but traditional banks cannot satisfy it. These people have collateral, which is in line with the bank’s risk control requirements, while Internet finance filling this gap, they use technology to reduce the cost of financial services and improve the risk control with big data.

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