What is the difference between WeBank and a physical bank?

1. Differences in genes determine differences in models and channels, as well as differences in cost structures and expansion speeds. For traditional banks, they need to rely on offline stores to absorb funds from small and medium-sized depositors, rely on account managers to absorb funds from large customers, and rely on offline stores and back-end review departments to issue loans. Therefore, the expansion of traditional banks requires the establishment of new stores and recruitment of personnel, as well as the number of users and stores. The number of employees and the number of employees are basically growing at a constant rate, resulting in huge costs, slow expansion, etc.

2. Differences in credit reporting systems determine differences in market and industry barriers. WEBANK's loan targets are mainly ordinary people and small and micro enterprises. With the rise of the middle class and China's urbanization process, this market share will become larger and larger. Therefore, the main loan targets of traditional banks are wealthy people who already have sufficient cash flow and can prove their ability to repay. Everyone should have heard of the unspoken rules and fierce competition in this process, and no one can form an absolute advantage.

3. Different speeds: The biggest threat posed by Internet banks to traditional banks lies in the field of microfinance. In this regard, many commercial banks, including China Construction Bank, China CITIC Bank, Hua Xia Bank, etc., have launched online loan products, and this field is full of smoke. Better experience better and more convenient banking services. Traditional banks, that is, physical banks with physical branches, operate offline.

Baidu Encyclopedia-WeBank

Baidu Encyclopedia-Bank