The Research On The Model Of E-commerce Small Loan’s Business Development

E-commerce small loan are developing rapidly in China in recent years, the E-commerce companies such as alibaba, suning, jingdong are entering the field of microfinance. Ali small loan company is the earliest established and the most typical small loan company based on E-commerce platform. It is of great significance to take Ali small loans for example to research on the model and risk of E-commerce small loan.This article first summarizes current situation of E-commerce Small Loans’ business, the E-commerce Small Loans’ business development and the risks that E-commerce Small Loan face in China. Ali small loan company is taken as an example for the research to explore its business model and risk in detail. In the part of case analysis, the model of Ali small loan’s business development and the characteristics of its business development are analyzed. In addition, the model of Ali small loans company and the model of foreign typical small loans company were compared. And I summarize the advantages of Ali small loans with mass of data, low marginal cost, powerful cloud computing technology and monitored capital by Zhifubao. But Ali small loan company has some problems. First, the legal nature of Ali small loan company is not clear. Second, the lending money of Ali small loan company is limited. Third, the data used for controlling risk only comes from Alibaba group. Finally, the customers of Ali small loan company concentrate on one end of the industrial chain. And credit risk and liquidity risk of Ali small loan company are analyzed in detailed from the perspectives of risk causes, risk management. And the policy risk of Ali small loan is analyzed. According to the above analysis, some recommendations on the development of E-commerce small loan are made in the end of this paper from three aspects of E-commerce small loan companies, merchants and regulation of E-commerce small loan.