Research On The Risk Prevention And Control Of The Internet Financial

Internet financial is a new financial which is relying on the Internet to realize financing, payment and other financial business. It is a new type of financial business which combines traditional financial and Internet technology. The Internet financial includes the third-party payment, P2 P investment and financing platform and the Internet financial wealth management services and so on.June 13, 2013, Yu’ebao has formally launched and put into use. It is a balance of value-added services for individual users by third-party payment platform. Due to its low barriers to entry by “one yuan admission”, the majority of low-income people started to use this service. Since then, the Internet financial represented by Yu’ebao has widely into the public view. It has improved the rate of return for users’ idle funds, created profits for the relevant institutions and enterprises, but also diverted considerable size demand deposits of commercial bank and reduced the subscription amount of financial products. At the same time, since Yu’ebao has absorbed massive funds, its business rules and risk control is particularly important. Because Yu’ebao is a new type of Internet financial that has the dual attributes of Internet and finance, the risk control and the standard is different from the traditional financial. Therefore, there is no regulatory system and legal regulations to ensure their safety, which needs Alipay and the relevant regulatory authorities to take appropriate measures. This paper forces on the risks of the Internet financial business which takes Yu’ebao as a represent and how to make effective prevention and control of these risks.The first chapter of this paper introduces the background of Yu’ebao’s risks and contral, and has a briefly reviewed on the current Internet research. The second chapter is based on the basic theory of Internet financial to analyze the several different development models of Internet financial, summarize the several characteristics of the Internet financial and conclude the produce of Yu’ebao and its financial innovation. The third chapter analyzes the risks in the process of operation, and classified the risks into five categories: Internet technology risk, market risk, operational risk, legal risk, policy and regulatory risk. The fourth chapter, according to the several kinds of risk, puts forward the corresponding method of risk prevention and control from the perspective of risk sources and the subject. The fifth chapter makes a summary of the risks of Yu’ebao and control measures and supervision measures, and the prospects for the development of Yu’ebao and other Internet financial business.Research on the theme of the risk and control of Yu’ebao and other Internet financial business is lack of comprehensive research and is relatively simple. The innovation of this paper is analyzing the risks of Yu’ebao and prevention and supervision. Since Yu’ebao and other Internet financial products appeared in short time, all kinds of risks and the impact on Chinese financial is only temporarily, which makes the lack of long-term data to provide exact basis. This is also the problem of this paper for further studies.