Research On The Risk Of Internet Consumption Finance

Internet credit finance is the combination of credit finance and internet technology which using internet technology to fulfill the credit service requirement of consumers.The internet technology brings convenient to credit finance service,but at the same time,a variety of new risks are hidden behind it.In order to ensure the stability of internet credit finance market,it is necessary to research the possible risk and risk control of internet consumer finance.This paper firstly elaborates on the definition,development history and characteristics of Internet consumption finance,and then analyzes its impact on society.Meanwhile two cases were used to describe the risks and problems existing in China’s internet consumer finance market;Secondly,this paper enumerates different categories of risks in internet credit finance,and use a finance product ’JingDong BaiTiao’ as a case to analysis new methods and technologies to manage risk in detail,especially analysis the differences between internet credit system and central bank’s credit system.Finally based on basic theory of credit risk control,this paper build a game theory model to describe a general transition process of pro-internet credit finance,and quantitatively analysis the impact of some key factors to credit risk control such as loan amount,interest rate,breach punishment and information sharing.Some advises are given to reduce the credit risk using the analysis results of this model.