China's P2P Network Lending Operation Model And Risk Research

With the rapid development of network science and technology, the global is enter into Internet era in twenty-first century. Internet thinking gradually penetrated into every aspect of life. From the microscopic point of view, the Internet has changed people's social behavior of traditional economic activities; From the macro perspective, the Internet subversively impact on the whole socio-economic and the industry.Internet Finance in China started relatively late, but the development is very fast especially after 2014. Premier Li encourages public entrepreneurship and innovation relying on the Internet thinking, Internet Finance companies impact on the traditional financial sector as a foreign invaders identity.Peer to Peer Lending is the result of modern information science and technology combining with traditional financial. According the characteristics and lending and borrowing process of Peer to Peer Lending, which should belong to the third type of traditional means of financing outside. Peer to Peer Lending platform utilize network technology to achieve mutual contact suppliers and demanders of funds, its essence is utilizing modern means of information gathering to get huge amounts of data, then relying on cloud computing to complete data processing, it determined the credit rating and risk of demand side to achieve financing basing on the analysis. Peer to Peer Lending satisfied the social various financing subject to short-term?small amount and unsecured type of funding needs, it also provided a channel for public financial management, therefore it is a important means of getting inclusive finance.Firstly, the test briefly introduce the long tail theory?asymmetric information theory?hitchhiking theory and the theory of Internet Finance, Then it turns to summarize the present development situation of Peer to Peer Lending, using case study method to analysis the process and pros and cons of overseas Zopa, Lending Club and domestic debt transfer mode?a security mode ? combining online and offline business model, then comparison and summarizing the innovation and shortcomings of our local operating model. Finally, we should learn from foreign maturity experience and combining with China's actual situation to analyze the hidden risks of Peer to Peer Lending which is brutal development(Platform positioning is not clear, overall quality of the industry is low, operational risk, legal risk),then making relevant recommendations(weigh the relationship between innovation and regulation, to establish self-discipline alliance, promote the platform transformation, enhance investor education),hope that I can do my small part to lead domestic Peer to Peer Lending industry healthy development.