Research On Credit Risk Of Small Loan Companies In Internet Finance

Microfinance company invested by natural persons,enterprise legal persons and other social organizations,don't absorb public deposits,and make a living on small loans business,as a limited liability company or joint-stock limited company.By the end of 2015,the number of microfinance company across the country had been 8910,and the amount of loan balance had been up to 941.151 billion.The vigorous development of microfinance company on the one hand is the product of the Internet information age,on the other hand,it makes up the blank of the traditional financial institutions,and eases the funding needs of mid-range groups effectively.The advantages of microfinance company is in short cycle,small amount,unsecured,and so on.Otherwise,microfinance company's ability to resist risk is far less than the bank and other financial institutions,in capital source,interest rate constraints,and credit risk control problem.These problems also have a bad influence on the development of microfinance company.Credit risk is one of the main risks to microfinance company.High quality customer was monopolized by the traditional financial institutions,whether it makes a loan or not relies mainly on subjective experience of trust officers.The scarcity of professionals and the specific operation where exists numerous credit risks are a serious impediment to the development of microfinance company.This definition is more than 10 days in overdue for default,based on the research of Q small loan companies,from the aspects of loan customers personal information(gender,age,occupation,etc.),historical loan level(historical maximum number of overdue days,the overdue times in six months,the overdue days of a recent loan)and repayment willingness(whether was prepayment,whether was back to zero,whether borrowed loans repeatedly,etc.),using the method of binary regression,factor analysis,SVM to find out the credit risks' inner correlation with the customer characters,we are dedicated to find out the factors which influence the loan customer to default through the analysis of the history of customer default,establish model,to predict the probability of default in new customers,and coupled with professional trial group decision letter,to establish a set of complete risk management system for customers.By a binary regression model that the following independent variables significantly affected,including:age,marital status and personal monthly income affected significantly which describes customers' personal information level,the days that overdue in last loans,the largest number of days which overdue in history,and whether meet the conditions described in loans which describes historical customer behavior level,and whether the amount of customers to zero in history which describes willingness to repay.Support vector machine method improves the accuracy of judgment.Default model as reference letter to audit personnel,saves manpower,time,and improve the microfinance company user experience.