Research On Credit Risk Management On Peer- To- Peer Lending

Internet finance is a hot issue in China. Under the impetus of Internet technology, small and micro businesses and the general public can more easily access to financial services. As a key part of the Interne, P2 P finance can effectively reduce transaction costs and alleviate the difficulty of financing for small and micro enterprises. Nevertheless, credit risk problem has been highlighted with increasingly fierce competition.. Concentration of credit risk restricts the development of P2 P lending industry. Therefore, the study of internet financial credit risk has become the subject of financial evolution.Existing studies mainly focus on operation mode in P2 P lending, and there is a lack of P2 P lending credit risk case study. Niwodai is the first A-class P2 P platform company in China, the analysis on the credit risk management of which will have a significance to the development of internet finance in China.Based on case analysis, comparative analysis, data analysis and other methods, this paper firstly summarizes current research credit risk control management of P2 P lending. Then, basic analysis on P2 P lending industry and Niwodai business model is made in order to explore risk points. Next, the paper uses flow diagrams, fault trees to identify credit risks, and explores credit risk evaluation of P2 P credit risks using 5W and income microsimulation method. Finally, combining foreign advanced approach in credit and regulatory in P2 P lending, this paper puts forward control and development strategies for Chinese P2 P industry., including improving legislation, credit system, establishing internal control mechanisms to accelerate technology development and innovation, etc, wishing it could bring a positive reference to the construction of P2 P lending credit system.