Research On Risk Management Of Internet Auto Finance Business

Internet auto finance platforms are emerging auto finance entities that combine auto online transactions,auto finance businesses,and third-party services.Its business revolves around automobiles.In recent years,it has been sought after by the capital market and has developed very rapidly.Internet auto finance breaks geographical restrictions,fills up the business gaps of traditional auto finance institutions,and achieves rapid business growth through new financing methods.Relying on the characteristics of simple information and fast approval,it forms a strong contrast with the business process of traditional financial institutions.It provides financing channels for customer groups with weak asset strength,poor personal stability,and slight flaws in personal credit qualifications.Favored and supported by young consumer groups,it is a beneficial supplement to traditional auto finance entities.The emergence of Internet auto finance has solved the problem of financing difficulties for some Chinese consumers and promoted the development of sales and scale of my country’s second-hand car market.At the same time,it has also brought some negative effects.The Internet auto finance platform focuses on business expansion and lacks risk management,which has produced some negative effects on the company and society.For example,the overdue rate continues to increase and there are difficulties in bond redemption.So,what are the main risks of Internet auto finance?What is the cause of the risk? This article will try to analyze the following issues in detail.The structure of this article is as follows: First,analyze the current development of auto finance,revealing that under the conditions of economic growth,increased residents’ disposable income,and Internet popularization,Internet auto finance is a product of technological and economic development and can promote the growth of domestic demand in my country.Then,consult related literature on auto finance and risk management to understand the theoretical basis of risk and research results related to risk management.Third,by introducing the current business status and risk management status of Internet auto finance,find out the problems and causes of its risk management.Finally,analyze the shortcomings of Yixin Company in risk management.Make relevant suggestions.This article will analyze the problems and causes of Internet auto finance in risk management based on stakeholder theory and information asymmetry theory,hoping to provide references for internet auto finance platforms.