Google announced on Wednesday (May 10) that it would ban advertising of similar usury products, such as payday loans, worldwide. This is the first time Google has issued a global ban on a large category of financial products.

    A payday loan is a short-term loan of one to two weeks in which the borrower promises to repay the loan after he or she has paid his salary. If the principal and interest of the loan cannot be paid at maturity, an extension may be proposed.

    Payday loans, including fees and late fees, have an average annual interest rate of 391%. Applicants only need to provide a regular proof of income, even proof of government relief. Due to the low threshold for payday loan applications, the procedure is simple and has developed rapidly in North America and the UK.

   However, it can be seen that the abnormally high loan interest rate can be called the standard usury. At the same time, such loans are seriously inadequate due to their separation from the formal financial system, credit reviews by lenders and identification. Security risks are highlighted. More importantly, seamless payday loans have severely squeezed the development space of formal finance's auto loans, consumer loans, student loans and commercial loans, and have also put pressure on borrowers to pay high interest rates, suspected of serious "exploitation".

   Not only will Google ban payday loans, but from July 13 this year it will no longer accept loan advertisements with repayment terms of less than 60 days, and it will ban loan advertisements with annual interest rates of more than 36% in the United States. Similar to China's current P2P corporate loan advertising should be mostly prohibited.

   Google calls these loans toxic financial products to prevent them from poisoning consumers. 'In this spirit, we will update our existing policy to prohibit products such as payday loans from appearing on our advertising systems, ' Google said. Studies have shown that these loans can lead to insolvency and high default rates, so we will update our policies globally to reflect this. This change is intended to protect our users from fraud and harmful financial products, and to ensure that the business of companies that provide mortgages, auto loans, student loans, and commercial loans is not affected.

    Even more impressive is that Google stands at a higher level of awareness and perspective on the impact of advertising on the lives and well-being of its people. Google says good advertising connects people to interesting and useful brands, businesses and products. Unfortunately, not all ads do. Some ads advertise fake or harmful products or mislead users. We have a wide range of policies to ensure that bad advertising is excluded from our system. Financial services advertising is particularly vigilant because they relate to people's lives and well-being.

    Is this high level of awareness as a business innate? Not also. I believe that all enterprises will do whatever it takes to pursue profits and give shareholders the maximum return. Google has such a high degree of self-discipline, on the one hand, Google is seeking a hundred-year-old foundation industry, rather than the immediate small profits and destroyed the evergreen base industry, especially the Internet enterprises that have always relied on customer traffic. On the other hand, the United States perfect regulatory system, such high-pressure external forces make Google pay a painful economic price, can be said to take a huge amount of money to buy the lessons, in exchange for law-abiding. Google, for example, has been fined up to $500 million by regulators for advertising drugs. Internal dynamics and external pressure have made Google extremely cautious about advertising, afraid to step over the minepool, and automatically block toxic ads spontaneously. In 2015 alone, Google blocked 780 million ads for a variety of reasons, from counterfeiting to fishing.

   This can not help but remind us of Baidu's troubled Wei Tracy incident on its heavy impact. As a popular Internet company, don't fall into the eyes of money to engage in bidding rankings and things like that. It is gratifying to note that Baidu's "all online promotional services for medical and health products have been suspended" as a result of the Wei Essie incident. P2P, precious metals are also affected, included in the high-risk industry, all P2P platform, with or without qualifications, can not sign a framework agreement. Baidu eats a temporary long one zhi is walking towards Bright Avenue.

    It can be seen from this that a good business environment depends on self-discipline alone and other aspects are not possible. We must rely on self-discipline, strict supervision, healthy competition and external pressure from competition. Competitively, the threshold should be lowered as soon as possible to allow international internet giants such as Google to enter China.