Domestic And Foreign Enterprises Operating Mode P2P Microfinance Research And Case Analysis

In1976, Professor Muhammad Yunus founded the first community development bank of Bangladesh--Grameen Bank. It is a financial organization that makes small loans (known as microcredit or "grameencredit") to the impoverished without requiring collateral. In2006, the bank and its founder were jointly awarded the Nobel Peace Prize. From then on, the successful operation mode of Grameen Bank spread around the world. The achievement of micro-credit in non-profit sector had attracted the for-profit financial companies’attention. They began to copy the operational mode of Micro-credit organization:providing a platform to connect borrowers and lenders, generating profit by charging service fee, this is the origin of Peer-to-peer Micro-credit Company (or P2P Microcredit Company).Peer-to-peer micro-credit Company first founded in England in2005, and then spread to China. CreditEase which founded in2006is the first P2P microcredit platform in China. Afterwards, P2P microcredit obtained booming development, and the number of P2P Microcredit Company increased from dozens in2008to around300in present, and it has been networked. Because the threshold of P2P industry is low and there is no regulator, nothing can block the develop speed of P2P microcredit industry. However, the amazing development speed is bound to result in the dislocation of P2P microcredit industry. Nowadays, in China, the P2P microcredit industry is quite a mixed bag with differing service level. And incidents like P2P companies’fund chain broke or investors down the drain or financial fraud etc. happened a lot. Therefore, facing the huge market demand as well as troubled industry, what the P2P microcredit companies supposed to do? How could they get great progress? Which organization is supposed to regulate the P2P industry? Should the government put them down, or just the opposite? These are all the problems that P2P microcredit companies face. It is worth to pursuing further. And these are all the questions this article trying to answer.There are five parts in this paper:introduction; the overview of P2P microcredit industry; different operational modes of P2P microcredit companies and example analyses; questions that P2P microcredit companies face and my suggestions on how to solve them; and conclusion. Among the five parts, the first and second chapters are the theoretical parts, it’s the research background. The third chapter is about the different operational modes of P2P microcredit companies in China and foreign countries and example analyses. This chapter is the key part of this paper. The fourth chapter is the result of this paper.Specifically, in the first chapter, this paper firstly describes the origin of P2P microcredit companies, and its development history as well as its current situation. Through this part, readers will learn about the research background of this paper. Besides, this part also summarizes the domestic and foreign research status on P2P microcredit companies.In the second chapter, this paper describes the overview of P2P microcredit from the aspects of its definition, characteristics, classification, and emerge causes etc. Moreover, this part also describes the development history of P2P microcredit companies both in China and foreign companies.The third chapter is the key part of this paper. In this part, this paper uses the following indicators:company establishing time, company size, business procedure, risk management, transaction mode, mortgage guarantee, clients, loan limit, loan interest rates, charging standard, rate of return, to contrastively analysis the operational modes of5representative P2P microcredit companies(three of them are foreign companies and the other two are domestic companies). All the5companies are much matured companies in microcredit industry with large size.On the basis of the first three chapters, in the fourth chapter, this paper points out the external and internal problems that Chinese P2P microcredit companies faces, like regulatory issues, and credit appraisal system problem, and custodian bank issue, and information asymmetry problem, and market risk etc. Then, this paper gives suggestions on how to solve the above problems. Finally, this part give its forecast on the develop trend of P2P microcredit industry.The conclusion part comes up to the research results of this paper. And this part also points out the contribution and deficiency of this article.