Research On Credit Risk Management Of Ali Small Loan

The recent years have witnessed a growing awareness of e-commerce application among small and micro enterprise. While maintaining a relatively high growth rate,these small and micro enterprises are facing huge financing needs. It is evident that traditional finance fail to solve the "financing difficulties" of small and micro enterprises. Internet Finance, however, a new form of finance backed by large data and cloud computing technology, is able to provide a new solution.Of all the risks faced by e-business loan, credit risk is by no means the most significant one. This paper focuses on the credit risk management of Ali small loan.The article studies the credit risk control of e-business loan, with the empirical example of Ali small loan, representative of the patterns of Internet finance. We first categorize multiple views from experts at home and abroad on Internet finance with its risks. Then, we take a further step to explore the credit risks of Ali small loan.There are two significant findings in this article. The first one concerns before-loan credit risk control. By comparing Ali small loan with Kabbage, a representative online small loan pattern from the U.S., we found the advantage and disadvantage of Ali small loan in terms of before-loan credit verification. Therefore we put forward the suggestion of diversifying the sources of credit verification.Another finding concerns after-loan credit risk control. Based on the necessity and practicing procedures of credit risk pre-warning, from a theoretical and empirical perspective, we discuss the application of blurred gray integrated evaluation method and AHP method in the case of Ali small loan credit risk control.Finally, based on the results of our study, we put forward several advises on improving credit risk control of Ali small loan.