Study On The Money Flow Pattern And Risk Prevention Of P2P Lending Platform

Internet banking is a combination of Internet technology and the financial sector. The Internet finance is an emerging financial development mode to achieve financing, payments and messaging capabilities with the help of the Internet and mobile communications. In terms of the operations, the Internet can make full use of large financial data, cloud computing, networking and interactive search engine and other Internet technology to achieve new financial development model of financial intermediation. In full and efficient use of Internet financial model, with low unsymmetrical information and communication cost, the supply and demand parties of funds can conduct trade conveniently and dramatically improve efficiency of asset allocation and cost of capital circulation.Peer-to-peer lending industry is one of the most important forms of the Internet finance. It has six major characteristics: opening resource, intensive cost, choice of marketization, diversified mode, more complicated regulatory, bigger risk. In China, Peer-to-peer lending industry is still the individual independent of traditional lending practices outside the traditional financial system, it is a group of individuals lending behavior publicly with network. In practice, many new lending platforms have been derived in China which is different from foreign typical Peer-to-peer lending platforms. The new platforms have strong vitality, but cause a lot of controversy. The deep research of Industry development situation, technology mechanisms, industry risk and industry regulatory policy is in favor of the relevant personnel which include practitioners, funders, investors and regulators. This paper intends to focus on financial risks and other operating characteristics, and discuss how to prevent and resolve financial risk. With all work, the author’s expectation is to help investors to improve operational efficiency with financial security safe.