An Empirical Analysis Of Factors Influencing Differences In Interest Rate Pricing Of Personal Loans Of Commercial Banks In The Internet Era

In the Internet era,with the rapid development of big data technology,artificial intelligence,and financial technology,Internet finance has won rapid development in China。Internet finance personal credit products,represented by "Weilidai" and"Jiebei",offer different product forms.The pursuit of convenience and speed has changed the way interest rates are priced,with quantitative algorithms replacing traditional manual methods of determining the interest rate on each loan.Interest rate pricing for internet finance products relies on data algorithm generation,while traditional loan pricing relies primarily on empirical judgement and is mainly qualitative.There are significant differences between the two in terms of interest rate pricing methods and results,but with the rapid development of the financial industry,the integration of the two pricing methods will be one of the future trends.By studying the differences in interest rate pricing between quantitative algorithms and manual approaches,this paper aims to explore the organic integration of quantitative judgement and manual experience in interest rate pricing methods.Based on a cross-sectional sample of data from Bank Z,the differential values of interest rate pricing for two types of loans owned by the same customer at the same time are investigated.Using the method of empirical analysis,the problem of interest rate differential judgement and the integration of traditional and quantitative pricing methods is addressed by splitting the influencing factors into two groups of traditional and quantitative variables for regression analysis.On this basis,practical single-family single-loan and single-family multi-loan interest rate methodologies are proposed,along with supporting business strategies.Based on a study of a sample of interest rate pricing differences at Z Bank,the following conclusions are obtained:firstly,for the same customer,there are significant differences in the loan interest rates determined using different methods,and the reasons for the interest rate pricing differences mainly lie in different pricing principles;secondly,in offline lending,the main basis for pricing interest rates for small and large loans is different,with offline petty loans focusing more on the customer’s personal qualifications,while offline large loans focus more on the loan’s own attributes.Thirdly,traditional loan interest rate pricing does not fully take into account the comprehensive credit evaluation and capital constraint of customers,and this paper argues that the introduction of online quantitative evaluation dimensions will be able to make a significant contribution to the manual-based Third,in offline lending,the main basis for pricing interest rates is different for small and large customer segments.