Factors Affecting Credit Risk Borrowers Of Online Loan Platform Based On Hybrid Technology Of Information Gain And Multiple Stepwise Regression

The popularity of the Internet has brought earth-shaking changes to people's lives.Traditional lending has become a popular field of vision through the Internet.Unlike traditional financial institutions and bank lending,although it plays an intermediary role,network lending has no intermediary departments such as banks,which has changed the traditional credit model.The United States,one of the earliest countries to start online lending,set up a number of online lending platforms in the early 21 st century,one of which is Lending Club.As one of the largest online lending platforms in the United States,Lending Club was established in 2007.Like other online lending platforms,Lending Club provides a platform for online transactions between borrowers and lenders.This mode of lending does not involve financial institutions.The process of loan issuance is determined jointly by both borrowers and lenders.Compared with traditional financial institutions such as banks,this way of obtaining loans is faster and more convenient,and the smaller amount of capital needs can also be met.Therefore,Internet lending has changed people's view of traditional credit,broadened the channels of financing,and a more convenient and more acceptable new way of lending has gradually changed people's lives.Network lending platform also faces an important problem,namely information asymmetry.Borrowers and lenders do not know each other's credit status,which will undoubtedly increase credit risk and lead to losses.Any institution engaged in financial activities,whether traditional financial institutions or the subsequent rise of online lending platforms,is facing this common problem: credit risk.According to the definition of the Basel Accord Committee,credit risk refers to the possibility that the trustee or the transaction object of a bank may not be able to fulfill its prescribed obligations.After years of development,traditional financial institutions such as banks have a relatively mature risk control system,which is difficult to achieve in Internet lending.Credit risk management is the most important part in financial risk management.As the largest financial market in the world,the United States has the largest loan scale in the world.However,the global financial turmoil caused by the "subprime crisis" in 2007 has made people have a clearer understanding of credit risk.How to identify the factors affecting credit risk and how to strengthen its supervision and prevention is regarded as an important task to be understood urgently.Therefore,it is necessary to study the influencing factors of credit risk of borrowers of online lending platform.The scale and speed of the development of Internet lending in the United States are the first in the world.Therefore,the study of the Internet lending industry in the United States will be of great significance to the development of China's Internet lending market.Lending Club is one of the largest online lending platforms in the United States.It was established earlier and listed on the New York Stock Exchange in 2014.It has developed rapidly in recent years and its management is relatively mature.The platform will publish relatively complete loan data for analysis and research.Therefore,the data selected in this paper are from Lending Club.Based on the previous studies,this paper makes an empirical study on the influencing factors of default risk of borrowers on network platform by using literature research,content analysis,information gain method and multiple stepwise regression method.Finally,this paper selected eight factors from 21 factors affecting borrowers of online lending platform.The results show that borrowing amount,loan interest rate,repayment quota,housing condition,number of overdue,open credit account,utilization ratio of recycling quota and borrowing purpose have significant effects on borrowers' default behavior.Among them,borrowing amount,loan interest rate,housing condition and open credit account have significant negative effects on borrower's default risk;borrower's repayment amount,borrowing purpose,utilization ratio of circulating quota and number of overdue times have significant positive effects on default risk;while borrowing period,working life,income certification,annual income,income-liability ratio,total loan turnover balance,construction have significant positive effects on borrower's default risk.The duration of credit establishment has no significant impact on the borrower's default risk.According to the results of the study,some suggestions are put forward on the system design and legal supervision of online lending platform in China.It has important theoretical and practical significance to promote the healthy and sustainable development of China's online credit market.