Research On The Prevention Of Credit Risk In China's Internet Consumer Finance

In recent years,China's economic restructuring has accelerated and the economy has entered a new normal.Investment,export,and consumption are the troika of China's economic growth.Investment and exports have slowed the pace of economic growth.Expanding domestic demand and stimulating consumption have become new growth points for China's economic development in the new era.In order to give full play to the role of consumption in stimulating economic growth,the state proposed structural reforms on the supply side and actively encouraged consumption,especially consumption in new areas such as culture,education,tourism,and leisure,and raised the level of consumption of the general public to achieve optimal upgrading of the consumption structure.With the popularization of Internet technology,the accelerating convergence of various industries and the Internet,and the increasing emphasis on the development of the consumer finance industry,the Internet consumer finance came into being in this era.With the characteristics of unsecured,unsecured,zero down payment and fast lending,Internet consumer finance has gained recognition from the market once it is launched.It is especially popular with young consumers and the industry has achieved explosive growth in the short term.The credit risk of consumers as an important risk in the development of internet consumer finance deserves attention.This paper takes the credit risk of China's Internet consumer finance as the research object,explores the causes of credit risk and preventive measures to promote the healthy development of China's Internet consumer finance.First of all,this paper analyzes the development status of China's Internet consumer finance and divides it into five modes:e-commerce model,bank model,consumer finance company model,internet finance platform model,and vertical subdivision platform model.Secondly,an analysis of the credit risk of internet consumer finance reveals that the causes of credit risk include limited credit information,difficulty in authenticating user information,incomplete credit system,higher costs of tracing consumer credit defaults,and consumer access to credit risk.The credit line is too high;excessive credit lines may induce consumers to increase consumption excessively,resulting in credit risk.Then,through empirical analysis,it is found that the borrower's personal characteristics,financial characteristics,reputation characteristics,and borrowing characteristics all affect his credit line.Then,through an analysis of the management of credit risk management in the United Kingdom and the United States,it was found that credit risk management requires not only sound laws and regulations,but also the support of a sound credit system.In addition,the self-regulation of industry associations can be formed with government supervision.Finally,combining with the actual development of China's Internet consumer finance,we propose countermeasures for the prevention of China's Internet consumer finance credit risk from three levels.At the national level,laws and regulations of the Internet consumer finance industry should be improved and the credit collection system should be improved;at the industry level,the Internet consumer financial industry associations and professional non-performing assets collection companies should be established;at the enterprise level,they should improve their own risk assessment systems and adopt online + offline combined review mode.