Research On Personal Credit Risk Assessment Based On P2P Network Lending Platform

P2P network lending is a new financial services model by a combination of the Internet and P2 P lending, developing rapidly since entering our country. As a new network lending model, P2 P Internet exposed many problems during the development. Its risk management ability is far lower than traditional commercial banks,and individual credit risk is the biggest one it faces. Individual Credit Risk is the risk that the borrowers of P2 P network lending platform cannot repay the loan, which is the main risk of P2 P network lending platform.Firstly, the credit risk is analyzed on the role of P2 P network lending platform borrowers from the perspective of individual credit risk point of view and based on the mode of operation of the P2 P network lending platform. Secondly, after the analysis of individual credit evaluation method from mainstreams at home and abroad like American FICO and China's commercial banks etc., with reference to the individual credit evaluation system of China Construction Bank, factors affecting the risk of P2 P networks borrower credit are analyzed and unique risk factors of the P2 P network lending platform are considered. After indicators were added and removed based on the availability of data, the individual credit risk evaluation index system of P2 P network lending platform was established. After that, this paper introduced the basic principle and algorithm of BP neural network model, and improved the shortcomings of the LM algorithm, analyzed the applicability of BP neural network model in the individual credit risk assessment, determined the basic structure of the BP neural network model and finally established BP neural network evaluation model. Last but not least, we selected the simulation sample data from Renrendai ? PPmoney and other P2 P network lending platform, trained and simulated data using MATLAB, assessed borrower's credit risk rating with high accuracy, proved that the model is capable of forecasting and evaluating the credit of P2 P network borrowers.Research results show that the created individual credit risk evaluation system for P2 P lending platform is conformed to the principle of system design and is able to objectively and effectively evaluate the borrower's personal credit risk strong reliability, objectivity and scientific. In conclusion, we pointed out that the created BP neural network model applied well for personal credit risk assessment based on P2 P network reality and it has good prospects for development, and the limitation of the study was expounds.