Research On The Transformation And Development Tactics Of Internet Loan Platform Business Under Strong Regulatory Environment

In recent years,Chinese Internet financial sector represented by Internet Loan Platform has been developing promptly,which contributes much to improving the efficiency of financial services and promoting the financing of small and micro sized enterprises and brings large impact on traditional financial sector.However,as Internet financial sector develops fast,many problems have been exposed as well,drawing more and more concerns from regulatory departments.In particular,since late 2015,a lot of regulatory policies on Internet finance have been issued and specific rectification actions for Internet finance have been conducted nationwide.In 2017,Chinese Financial Work Meeting was convened,indicating China entered strong regulatory time in financial sector.The“1+3”regulatory political system specially targeted at Internet loan business was formed,standardizing and binding all aspects of Internet loan platforms.Under such background,all Internet loan platforms are facing transformation and development.In the paper,the author selected "Lufax"-the largest Internet loan platform in China as the research object and conducted deep as well as complete analysis&research on the tactics about transformation and development of Lufax business by the method such as literature review,comparative analysis and case research and in accordance with the research idea-proposal,analysis and solution.Firstly,the author retrospected and summed up the development situation of Chinese Internet loan sector and sorted out as well as researched the external environment i.e.regulatory situation on Chinese Internet financial sector;secondly,the author introduced the development situation of Internet loan business of Lufax by cases,analyzed Lufax's advantages,disadvantages,opportunities and threats under the current regulatory environment and figured out SWOT model analysis result.Finally,the author proposed the ideas and concrete as well as feasible tactics for the business transformation of Lufax under strong regulatory environment and suggested that Lufax shall endeavor to keep the advantages leading the sector based on legal and eligible operation and carry out the tactics as follows:I.Improving capability in risk control and developing business prudently;II.Enhancing market subdivision and reinforcing customer foundation;III.Financing in capital market and improving corporate force;IV.Operating pursuant to laws/rules and avoiding reputational risks;V.Engaging in self-disciplined organization work of the sector proactively and acting as the leader of sector development.The paper has the main innovations as follows:Firstly,the analysis is combined with the business development of Internet loan platform and the regulatory policies,avoiding the one-sidedness i.e.analyzing regulation without business or analyzing business without regulation,making the research hereunder more realistically significant.Secondly,the research hereunder is closely connected with the latest market situation.The Internet loan sector has encountered large change in recent years,but the author analyzed all hot events and regulatory policies about Internet loan sector arising in the latest two years in detail,presenting strong timeliness.Thirdly,mass data hereunder are from the bodies which the author has ever served such as People's Bank of China,China Internet Finance Association and Internet Loan Family,effectively guaranteeing authentication as well as accuracy of data and scientificalness of inference.