The Research On Credit Risk Management Of Alibaba Small And Micro Financial

Micro credit is closely related to people's livelihood which serves minor and medium enterprises. The applicants of the loan lack the strong economic capabilities and adequate mortgage which brings Micro credit a lot of risks that hinders its development. The primary reasons of the risks are information asymmetry, high credit risk, imperfect monitoring and compensations mechanisms and related policy. The blooming development of Internet's financial industry in the recent years made Alibaba Small and Micro Financial Services took advantage of it's big date, low operating costs and convenient lending and repayment platform and became the outstanding model in the E-commerce micro credit area. The short -time development history, related imperfect Chinese micro finance system and its automatically and unsecured lending system with a lot of loan requirement. These reasons lead to a lot of risks to Alibaba Small and Financial Services.Through research and related references, the author's analysis of the existing Alibaba Small and Micro Financial Services, which consists of risk of supply and demand risk of lender's credit and operating risks. The reason of the risk of supply and demand is because Alibaba has insufficient funding and a large demand for loans, and the risk of lender's credit comes from the special nature of its credit subject itself and the imperfect credit system, also the operating risks is due to its platform's imperfect running. In the end, the author came to advise and suggest solutions like improving it's financial status to reach it's financial channel to make provisions for risk reserve, it should shall draw risk reserves to avoid credit risk and formulate the related credit indicators of Alibaba small and Micro Financial Services and so on.