Analysis Of The Operational Problems Of China's Consumer Finance Companies

In the context of the slowdown in China's economic growth and the country's encouragement of consumption to stimulate the economy,consumer credit demand has been growing year by year,and the development of consumer finance in China's financial market is also growing.In 2010,the country initially established consumer finance company,aiming at serving a wider range of people,specializing in personal consumer loan business,and distinguishing traditional bank consumer credit business models.However,due to the late start-up and the short development time of consumer finance companies,their business models,business processes,and risk controls are still not perfect.As a result,some consumer financial institutions have incurred business risks in order to maintain development.Beiyin Consumer Finance Corporation was one of the four consumer finance companies created in early 2010.However,in order to achieve high-speed development,the company has been severely punished by the regulatory authorities in spite of its risk-free operation.Under the circumstance that the state has strict supervision over consumer finance companies,consumer finance companies have seen initial problems in their operations.They must look for the reasons themselves and solve problems in a timely manner so as to ensure that the company can operate steadily for a long time.Therefore,this article selects a case to study on the punishment of Beijin Consumer Finance Company,focuses on the company's violations and in-depth reasons,and combines relevant information from other consumer finance companies to identify common problems in their operations.This paper introduces the topic of the thesis on the basis of introducing the development status and research status of consumer finance companies.First of all,it analyzes the day-to-day business model of Beiyin Consumer Finance Corporation,in order to find its problems in business promotion,at the same tme this paper analyze its industry problems.Secondly,it focuses on excavating the penalty incident.The financial risks involved revealed the reasons and found that Beiyin Consumer Finance Corporation's violations were inseparable from its business model,imprecise business,lack of internal risk control,and high financing costs.Then,the article analyzed the entire consumer financial company based on the actual conditions of the industry.The major operating loopholes existed in the group.Finally,this article puts forward suggestions and measures to guard against the operational risks of consumer finance companies.It hopes that the events of Beiyin Consumer Finance Company can serve as a warning to other consumer finance companies,prompting them to better improve their anti-risk capabilities,strengthen their market position,and protect Personal consumer rights.