Research On Credit Risk Prevention Of Internet Consumer Finance In China

With the development of Internet technology,all industries and industries hope to integrate with the Internet to seek new development directions for enterprises.In addition,the country regards the consumer finance industry as a strategic emerging industry for future economic development,and Internet consumer finance has emerged at the historic moment.China's Internet consumer finance refers to a way of providing credit services to the people for consumption purposes(except for housing and car consumption).Compared with traditional credit,this method has the advantages of informatization,batchization,and low cost.Therefore,it also has the characteristics of zero mortgage,fast online review,and fast loan.Because of these characteristics,once launched,it has attracted a large number of consumers,and the entire industry has entered the fast track.However,along with the rapid growth,the overall credit risk of the industry is also increasing,which seriously affects the stability of the industry.This article takes the credit risk of China's Internet consumer finance as the research object,identifies the credit risk existing in the industry as a whole,explores its causes,and related factors,and then puts forward specific precautionary recommendations,and hopes to effectively reduce the industry's credit occurrence.Probability of default.First,this article has effectively identified possible credit risks in China's Internet consumer finance industry from the perspectives of borrowers,platforms,and lenders.At the same time,I learned that the existing consumer financial service platforms' models for preventing credit risk mainly include models based on e-commerce platforms,models based on social platforms,and models relying on inter-industry cooperation.Secondly,based on the effective identification of credit risk,the possible reasons for its occurrence are analyzed.It is found that the reasons for credit risk in China's Internet consumer finance industry mainly come from three aspects: first,it is caused by consumer borrowers in the industry;second,it is caused by the vicious competition of Internet consumer finance platforms;third,Caused by the overall external environment outside the industry.Then,through analysis and empirical analysis,it was found that some basic information of the borrower did significantly affect the occurrence of consumer credit risk.Finally,based on the experience of the United States and the United Kingdom in preventing credit risk in this industry,and combining with the specific development of China,it is proposed that laws and regulations and credit reporting systems should be improved under government supervision,and self-regulatory organizations should be established to regulate the post-loan process Relevant suggestions for optimizing the risk prevention system and review mode in institutional audits..