The Discussion On Risk Prevention Of Financial Services Outsourcing In China

Financial services outsourcing refers to the operation that financial institution make service provider to complete the operational activities continually which undertaken by itself previously. It is a new business operation pattern in the financial industry, which has advantages such as cost reduction, efficiency raise, services improvement and core competitiveness promotion. However, as a double-edged sword, financial services outsourcing has inevitably brought risks. Therefore, to prevent its risks has become inevitable.This paper attempts to construct a financial services outsourcing risk prevention system which is systematic and fit Chinese condition. The system is drawn in this article by taking the content and theoretical basis of financial services outsourcing as starting point and learning from the developed countries'risk prevention experiences of financial services outsourcing.Firstly, this paper introduced the risk types of financial services outsourcing and the identification and assessment of the risks after clarified the content of financial services outsourcing. Next, it introduced the present situation and trends of financial services outsourcing in foreign countries, analyzed the US-led developed countries'risk prevention experiences and took Hong Kong and Shang Hai Banking Corporation and Deutsche bank as analysis. Then, on the basis of the introduction of the present situation of financial services outsourcing in China, it analyzed its risk by transaction cost theory and princial-agent theory and pointed out the risk types and the problems in risk prevention of financial services outsourcing in China. At last it discussed how to construct a financial services outsourcing risk prevention system by learning from foreign experience and combining the specific situation in China. and get the conclusion of this article:As Chinese financial services outsourcing developing, both financial institutions and regulatory agencies should strengthen the prevention of its risk, so that financial services outsourcing in China can develop healthily.