Credit Risk Management Of Commercial Banks' Credit Cards

There are considerable flaws in the existing credit card risk management system of China's commercial banks,which is featured with outmoded information systems.Without effectively integrating big data,artificial intelligence and other technological means into the construction of credit card risk prevention and control systems,it is almost impossible to create “customer personas” accurately.Under such circumstances,commercial banks are plagued with such unremittingly high risk in their credit card business.Setting in the context of China's economic boom,this paper,taking Bank M as an example,leverages Logistic regression model combined with quantitative and qualitative approaches to analyze credit risks lying in the pre-and post-loan of Bank M's credit card business,in which it follows the paradigm of theoretical analysis—empirical analysis—internal surveys by referring China's actual economic status and management,economics and other related knowledge.It also proposes countermeasures to optimize the risk management of Bank M's credit card through drawing lessons from the advanced risk prevention and control of the Internet finance system,with a view to helping M Bank cope with credit card risks and underpin its competitiveness in the finance market.That's how its business can sustain and prosper.The credit card center of Bank M is affiliated to the headquarter.So far,as the business keeps scaling up,the total number of its subordinated organizations has reached 125,and meanwhile,it has set up scientific management system encompassing product diversification,business expansion,risk prevention and control,financial management and control,customer service,etc.There are primarily four its divisions engaged in the pre-loan and post-loan links of its risk control chain: branch centers across the country,customer service departments in Beijing and Chengdu,credit review office and asset monitoring department.To probe into the current credit risks of Bank M's credit card business,this paper elaborately designs a questionnaire covering customer credit data,activity trajectory,repayment ability,personal information,and social relationship indicators in the pre-loan link,after which it conducts an online survey of Bank M's credit card customers across the country to analyze how much the reality deviates from the presentrisk control policy.It aims to raise the accuracy and prudence when the center formulating credit policies,thereby preventing the risks during usage from happening in the first place;in the post-loan link,this paper adopts internal surveys to thoroughly scrutinize the risk control process,the mechanism,process,and personnel arrangement of the asset monitoring after loans,with an attempt to efficiently identify risks in Bank M's credit card business in the post-loan link.Based on what is found,the paper put forward targeted and pragmatic post-loan credit risk management and control measures to reduce the center's risk and mitigate its losses due to such risks.The innovation of the paper is that it analyses in-depth the credit risks in M Bank's credit card business according to the status quo of its credit risk prevention and control,through which it spots problems including inaccurately depicted personas,primitive risk control technology and non-inclusive operation and maintenance system during application submitting,credit approval as well as operation and maintenance of the risk system.To solve the problems found,it proposes corresponding measure to prevent and control risks by referring to the concrete experience of M Bank's credit card business and how credit risks are prevented and controlled in the Internet finance system.