This financial technology platform is going public: To B business is difficult to make a profit, and it has quietly increased the matching business?

One of China's three financial technology service platforms, Ping An Yitong, recently reported that it will go public in the United States.

According to the IPO report, Financial One Account Connect (hereinafter referred to as "One Account Connect") has secretly submitted a listing application to the US SEC, and will be listed in the US as early as September.

Bloomberg previously reported that an account was valued at $8 billion and planned to raise $654.38+0 billion through listing.

The financial sector asked the insiders of Yitong for information, and the other party said that it would "not comment" on the listing news, and everything was subject to the company announcement.

An industry insider who has cooperated with Yitongtong revealed to Consumer that Yitongtong will definitely go public. As we all know, judging from the current news, the preparatory work before listing should have been almost completed, and listing in the second half of the year is a high probability event.

It is reported that the company plans to land in Hong Kong stocks on 20 18. Later, there was no following, and now it has turned to US stocks. Some people began to use "twists and turns" to describe its listing road.

But in fact, if Yitongtong can successfully land in the US stock market in the second half of 20 19, its listing will be quite smooth.

In the field of corporate services in the United States, the median time to become a unicorn is 8 years, and the average time is 8.8 years. An account was registered only two months after 20 15 and 15. A round of financing was just completed in 20 18, and IPO was officially launched in 20 19, which is a very fast pace.

However, the business cycle of ToB is long, and it is generally impossible to grow rapidly. After several years or even ten years of deep cultivation in an industry, it is enough to understand the pain points of the industry and the customer's business before making suitable products. The polishing of products is very time-consuming.

Based on such industry characteristics, how can Ping An persuade investors to pay the bill after such a short growth cycle?

All account models: massive and complete ToB technology output.

Due to the saturation of the C-end market and the strict financial supervision, many Internet companies began to move to the B-end from 20 18, which became a big outlet for the financial technology output of ToB.

With the increase of entrants, ToB business is different from ToC and has been more and more clearly recognized by the market.

At present, ToB's financial technology companies can be roughly divided into traditional outsourcing companies, internet companies and technology startups.

Let me give an example of a traditional outsourcing company.

The consumer industry has learned that a company named Financial Technology in Shanghai has the resources of state-owned banks and has been providing some low-tech products to banks for many years.

However, in recent years, the demand of banks for financial technology services is increasing, and the products of this company have begun to lag behind the needs of banks. At the beginning of 20 18, we began to transform and prepare to develop new products.

Because there are already a large number of orders from banks, the financing will be in place soon, and investors are also very confident. Because the company has banking resources, as long as the products come out, it is not necessary to sell them. Start recruiting and do something big.

However, difficulties were encountered in the recruitment process, and talents in financial technology could not be recruited. The founder found that there was a shortage of financial technology talents, and it was difficult for his company to recruit technical talents. In the end, it can only be done by an experienced technician with a group of newly graduated college students. The progress of the product is very slow and it is difficult to form. When put into bank outlets for trial use, there are always bugs, poor feedback from banks, and mass production is far away.

However, money burns day by day. After half a year, the financing was almost spent, and the products were not polished yet, and layoffs began. The boss of the company told consumers that if you burn money like this, all the money earned in previous years will be lost. After six months, the product didn't work, so I gave up.

The experience of this company reflects the difficulties of ToB business: it must have the resources, talents and funds of financial institutions.

Another important participant in the ToB market is the Internet company. Large Internet companies set up financial technology companies and began to target licensed financial institutions.

However, a banking insider told Consumer magazine that such companies have obvious advantages and disadvantages.

The advantage is that there are technicians and processes, but the disadvantage is that they don't know banking business and have a deep understanding of financial business. Even for several large platforms, the main business is lending, so it is difficult to talk about technology output.

And the banks themselves are well aware that this model may be stopped by supervision one day.

There are also "small and beautiful" financial technology startups, which focus on technology output and focus on a subdivision. This kind of company also reflects the high threshold of ToB business.

The marketing director of a financial technology company told the consumer industry that in addition to being familiar with the financial leaders of banks and securities, the creative team of their company also acquired a large number of top technical talents through acquisitions, as well as senior people from traditional industries who are familiar with manufacturing and logistics. This configuration gives them the confidence to cut into supply chain finance.

But even so, the system they are developing, after more than a year of polishing, has not finally landed.

There is also the ToB financial technology company that takes the "big and comprehensive" route.

The financial unified account was formerly known as Shenzhen Ping 'an Jinke, which was established on July 20 1 1. In 20 15, Ping An Group integrated its three major businesses, namely, One Account Service, Qianhai Credit Information Service and One Account Service for Banks, and merged them into one account service for finance.

The idea of Ping An is to integrate technologies accumulated in the fields of banking, insurance and credit reporting, and then export them to small and medium-sized financial institutions and insurance companies.

According to the official introduction of Yitong, Yitong wants to build a cloud platform for financial technology services in the whole industry chain, and has launched four business segments: smart banking cloud, smart insurance cloud, smart investment cloud and open technology platform, covering various financial institutions.

It has successively launched more than 270 systems and 47 products, including mobile banking, intelligent marketing, intelligent risk control, supply chain finance, one enterprise bank, intelligent flash compensation, asset-liability management, ABS ecology, one asset management and bank core cloud.

By the end of March 2065438+2009, Yitongtong had provided services to more than 3,300 financial institutions, including nearly 600 banks, more than 70 insurance companies and more than 2,600 other non-bank financial institutions.

The Internet Finance Alliance of Small and Medium-sized Banks initiated by Yitong covers 260 small and medium-sized banks nationwide, with total assets exceeding 47 trillion yuan.

Profit is a short board.

In this way, the data of products and cooperative financial institutions, both in quantity and quality, are still very beautiful.

However, according to the understanding of the consumer industry, there are not many products that can bring scale income.

Theoretically, the fees that an account can earn include interest margin, insurance interest margin and information service fee. But in fact, there are not many profit points now. In particular, the system exported to banks has little income, and some even give it to banks for free first.

Among the unicorns in the ToB field of China's financial technology, besides Ant Financial and JD.COM Mathematics, the third place is Yitong.

Although there is still a certain gap with Ant Financial and JD.com in valuation, Yitongtong was born out of Ping An Group, and it still has comparative advantages over Ant Financial and JD.com in financial business, and its development model also has great potential.

However, people close to Yitong revealed to the media that Yitong's 20 18 revenue was about 10 billion, and its loss was about 10 billion. This can understand why Ping An is anxious to get an account listed. But listing will still bring income pressure. As a result, Yitong began to find ways to generate income.

A versatile business development manager told the financial industry that he is now docking funds and assets. Many city commercial banks and rural commercial banks in the western region that cooperate with Yitongtong have funds, but they lack high-quality assets. They associate these banks with assets such as consumer credit, car loans, and cash installment payments. Assets can also be introduced to an insurance company for performance insurance through an account, and then introduced to a bank with cooperative accounts, with a higher pass rate.

Yitongtong, who is determined to export technology, has also started as the most primitive fund broker, which further shows that the ToB business is not easy: the ToB business makes slow money, and the family business is as big as Ping An Group, with a high starting point and a fast pace, but it is inevitable that haste makes waste.

An account was changed from a Hong Kong stock to a US stock, obviously because Ping An didn't want it to repeat the mistakes of a good doctor.

In the half year after Dr. Ping An landed in Hong Kong stocks in May 2008, the share price fell by more than 50%. With Ping An's expectation of an account, such an encounter is obviously unwilling to see.

However, in order to avoid the experience of safety doctors, besides telling the story of ToB business, profit is an unavoidable problem after all.

What kind of transcripts will Ping An Yitong hand over? I believe the answer will be revealed soon.