Research On Risk Management Of Consumer Finance Business Of Xinwang Bank

With the development of big data,Internet of Things and other technologies,China’s Internet Banking has made rapid progress.The use of these technologies has also gradually reduced the number of people who have never enjoyed financial services in China,promoted the financial development of our country.Based on online operation,internet banking provides unique financial services to the public.But at the same time,during the operation of internet banking in our country,some illegal and irregular events occurred,which revealed the phenomenon of internal non-compliance and further explained the problem of risk management in internet banking.This paper uses the case analysis method to study the risk management of the consumer financial business of Xinwang bank,based on its existing risk management framework,this paper combs the process and content of internal risk management and external risk management in consumer finance business of Xinwang bank.Based on the data of Xinwang bank and its peers,this paper makes a quantitative evaluation on the current risk management effect of Xinwang bank.This paper uses Z-score and single index method to evaluate,and finds that the z-value of Xinwang bank does not perform well,and in the asset quality single index performance is not good,we can see that Xinwang bank’s Operation Management still has room for improvement.In addition,according to the Xinwang bank consumer financial business own risk management measures,the Xinwang bank in the internal and external risk management problems.Starting with the internal management,it was found that Xinwang bank had a loose identification condition for its customers to apply for loans before lending,that there were unreasonable pricing mechanisms in the loans,and that there were loopholes in the auditing of loan uses,after the loan,there are some problems,such as the lack of strict tracking of the use of funds,the risk of leakage of users’ privacy,the risk of illegal collection of money after the loan,etc.,there is no corresponding threshold,and there is no clear exit mechanism and crisis response mechanism for cooperation with partners.The reason can be summarized as the innovation mode of internet banking makes the risk management more difficult,relies too much on the background of science and technology,lacks the experience of risk management and lacks the awareness of risk management.Through the above analysis,taking the situation of Xinwang bank itself as the starting point,this paper puts forward some suggestions on the risk management of the consumer finance business of Xinwang bank in the aspects of audit,pricing,protection of consumer rights and interests,collection and perfection of risk management system Also from the development of internet banking in China as a foothold for the regulator in the Social Credit system construction,regulatory innovation,put forward some suggestions.Based on the analysis of the above,this paper hopes to improve the effect of risk control for Xinwang bank’s consumer finance business,and to provide a reference for other internet banks.