Research On Credit Evaluation Of Financial E Commerce Based On FAHP By The Case Of P2P

Financial electronic commerce is a form of emerging investment combined traditional finance and electronic commerce. Based on social network and transaction data from electronic commerce platform, the credit level of applicant will be determined, and then complete credit loaning behavior through electronic payment. In this way, people will be able to feast the conveniences brought by Big Data when they doing financial activities. However, financial electronic commerce has network externality,the value of a network depends on the number of people connecting to it. In other words, the more people using the product via the network, the more effectiveness will be gained by each user. AS the network externality affecting the financial electronic commerce, the risk of financial electronic commerce will increase exponentially. This becomes essential how to evaluate the credit level in financial electronic commerce development. In this paper, we discussed the major impact factors on credit evaluation using fuzzy analytic hierarchy process(FAHP). It provides a basis of investment to help investor making their decision.This paper contains transaction records of 50 P2 P companies from June, 2014 to December, 2014 as objective data to construct fuzzy complementary judgment matrix. In order to reduce the influences of subjective factors, the weight of each index is calculated based on principal component analysis(PCA) and fuzzy analytic hierarchy process(FAHP). Currently, financial electronic commerce in China is facing the situation of extremely high risk. According to 16 trading indexes,this paper determined 4 first level evaluation indexes from transaction data analysis and constructed the credit evaluation system for financial electronic commerce. Furthermore, the confronting problem and recommendable solutions are indicated in this paper for credit evaluation of Chinese financial electronic commerce.