Case Study On Internal Control Of Yue Bao Financial Platform

Yue Bao is an innovation in China's Internet banking in recent years.From its launch on June 2013,Yue Bao has taken the snowball speed of rapid expansion,becoming the most popular Internet financial products among the public.The launch of Yue Bao is the E-commerce group Alibaba's intention to establish a value-added service to consumers,aiming to solve Alipay's capital precipitation as well as increasing customer satisfaction,to improve user stickiness and loyalty.Therefore,compared to the traditional financial products,Yue Bao has its unique advantages,such as simple procedures,flexible operation,the lower threshold,high income,real-time consumer characteristics,etc.On the other hand,a series of risks brought about by convenient financial services has gradually become an issue of concern to investors,the public and the government.Internet financial risk is high in its infancy.The regulatory environment of Internet finance is not perfect enough resulting the barbaric growth of enterprises and the rough industry situation.Although Yue Bao has a strong background as a support,there are still some problems and risks.With the increasing influence of Yue Bao,these issues and risks have become increasingly important.Taking effective measures to prevent the expansion of the risks and problems should be mentioned to work schedule.The essence of Yue Bao is a money market fund products,Alibaba and Tianhong Asset Management Co launched an Internet banking services.Tianhong Asset Management Co is responsible for the operation and sales.Yue Bao financial platform is the essence of the Internet fund sales platform.It is the Internet fund sales channel innovation and service innovation.As for the legal relationship,Yue Bao financial platform is self-service online direct marketing platform composed of Alipay,Tianhong Asset Management Co and CITIC Bank jointly supported by the three party.Among them,Tianhong Asset Management Co is the fund management company and the fund sales company,responsible for Yue Bao operations and sales;Alipay is the third party business platform auxiliary service providers of Yue Bao that the fund transfer and payment and settlement service supplier.CITIC Bank fund is responsible for trusteeship and liquidation of Yue Bao.As for the decision priority,Zhejiang Ant Small & Micro Financial Services Group is the ultimate decision maker in Yue Bao product.Alibaba group is the director behind the scenes.Tianhong Asset Management Co is likely to become Alipay's puppet.It is difficult to achieve independent operation.To build and improve Yue Bao financial platform internal control system is concerned to the interests of investors,the public,the government,including the interests of the enterprise itself.In this paper,the research of the internal control of Yue Bao still takes the 2008 release of the "basic norms of internal control" in the study of the internal control method,adopting five factor analysis model of internal environment,risk assessment,internal control activities,information and communication,and supervision.Creating a good internal environment needs to discern the relationship between Alipay,Tianhong Asset Management Co and Alibaba in the decision making procedures,straightening out the legal relationship between Alipay and Tianhong Asset Management Co.To improve the comprehensive control activities needs to improve investment decision-making,credit guarantee mechanism and insurance mechanism.Strengthening the information and communication procedures needs to strengthen information disclosure platform services and inprove consulting platform for investors.To achieve effective supervision needs to establish good supervision system and improve the professional capabilities of supervisors.