Research On Risk Management Of P2P Online Loan Platform Of Yixin Company

Peer to peer lending(or peer-to-peer)is an abbreviation of peer to peer lending(or peer-to-peer)in English.It belongs to a kind of business development model that concentrates a small amount of money and lends it to people who need it.P2 P network lending can be simply regarded as a combination of private lending and internet.Its existence has certain inevitability,which largely makes up for the shortcomings of the traditional banking system,provides funds for the development of many small start-ups,supports "mass entrepreneurship,innovation among all people",and also provides a way to borrow for low-income groups such as rural areas,while the investment with spare funds in hand.People also have an additional financial channel.However,under the circumstance that the credit system of our country is not mature and the citizen's credit consciousness has not been established,the major P2 P network lending platforms have sprung up like mushrooms after a spring rain and developed rapidly.The quality of the platforms is uneven.Compared with the perfect credit system and supervision system of developed countries in Britain and the United States,the development of P2 P network lending in our country has congenital deficiencies,such as platform running and illegal.Absorbing public deposits and fraudulent incidents occur frequently;borrowers overdue,bad debts caused by the overlap of platform capital chain rupture incidents are also common in the newspapers.In 2018,there were 6430 online lending platforms,of which 5409 were problem platforms and shutdown platforms,and only 1021 were normal operating platforms.These platforms have bad effects on social stability and infringement on citizens' property.Therefore,for China's P2 P online lending industry,the status quo of risk management is not optimistic,and the research on risk management measures of the online lending platform is of great significance.On the basis of reviewing the domestic and foreign references,this paper introduces the related theories of Internet finance and risk management,and elaborates the FICO personal credit scoring model in detail.Using the method of literature research,this paper gives a detailed introduction to the current situation of development and risk management of P2 P online lending industry in China,and concludes that credit risk,moral risk,capital risk and technology risk are the main risks of the industry platform.As one of the earliest P2 P network lending platforms in China,Yixin has established a mature and reliable risk management system after more than ten years of development.It has rich experience in risk management.Therefore,its risk management system and measures are worth studying and learning.After analyzing the current situation of Yixin's development and risk management with case analysis method,this paper draws a conclusion that Yixin's operation mode adopts the combination of online and offline mode and the transfer of creditor's rights mode,and establishes a more mature risk management organizational structure,which ensures the safety of the platform through pre-loan risk assessment,post-loan return and collection,and risk early warning,but it is appropriate.Credit platform also has credit risk,moral risk,capital risk and technology risk.Using the comparative analysis method,this paper compares the risk management practices of foreign well-known P2 P online lending platforms,and concludes that the successful operation of these online lending platforms can not be separated from the restrictions of mature laws and regulations and a complete social credit system.The most important thing is that they have a relatively mature risk assessment management system.Based on the above analysis,this paper focuses on the internal risk management measures adopted by Yixin Platform to mitigate risks: preventing credit risk,actively incorporating external credit information system into the industry,establishing a professional wind control system in the interior,and strengthening the credit review of borrowers;for moral hazard,the key is from the source of data.Encrypted storage,and the establishment of the company's internal system,staff access to user data to implement hierarchical authority control;to protect the user's financial security,the focus is on the separation of platform funds and user funds;network security issues can not be ignored,platform intranet and extranet to isolate while strengthening room defense Firewall construction is also necessary.Finally,this paper puts forward suggestions for risk management of P2 P online loan industry in China from four aspects: risk management system,personnel training,Internet financial technology and network security.