Research On The Development Of Personal Credit Of Commercial Bank Based On Internet Financail Mode

With the advent of the information age,world-wide web continues to innovate,and Internet technologies such as big data and mobile payments are maturing.The rapid development of e-commerce corporations such as Tencent and Ali has boosted the economic globalization and financial integration.It also has brought the emergence of Internet financial products.On the other hand,as the marginal benefits of investment and exports of economic growth shows declining trends in recent years,consumption will become the main driving force for the country's economy development and the pillar of the market economy.Under such big environment,Internet consumer financial products have become the apple of the market's eye.The most representative development of these is the Internet personal credit.In recent years,Internet banking and P2 P platforms have mushroomed in the market.As their scale continues to expand,they have finally threatened the market position of commercial banks' traditional personal credit business,forcing commercial banks to respond to this new market competition.With the rapid growth of China's economy,the financial industry is no longer a monopoly industry as few decades ago.The fierce competition in the offline credit market is nearly saturated.The rise of internet credit is not only a competition but also an opportunity for commercial banks.However,with the development of Internet personal credit market,the problems it face and the risks it expose also follow.Since the characters of Internet personal credit such as small amount,scattered customers,difficult supervision,and high interest rates,Internet personal credit market had caused chaos in the market and attracted the attention of regulators of the government in last few years.Since the second half of 2017,because of the supervising policies such as the“Regulations on Regulating and Straightening Up the ‘Cash Loan' Business” and the“Special Implementation Plan for Risk Management of Small Loan Companies' Network Microfinance Businesses”,the internet cash loan market began to undergo a wide range of rectification,and a large number of illegal P2 P platforms and small loan companies were broken.This signal not only indicates the risk of the personal credit market on Internet,but also highlights the emphasis of the government on personal credit market on Internet.Under a more regulated market environment,commercial banks will be in a very good opportunity to intervene in this field.The potential of this new market is now waiting for its participants to dig deeper.Bank J,the largest provincial corporate bank in Province J,is moving forward in the Internet personal credit market.The questions such as where this path is leading to and through which way can Bank J progress will be further discussed in this essay.This essay first introduces the development trend of personal credit business and Internet finance,and puts forward the design of feasible Internet personal credit under this background.It also demonstrates the cost,profits,risk and solutions of commercial banks under the Internet finance model through case studies and data analysis.Afterwards,combining this theory with J Bank's current attempts in the Internet credit market,it puts forward the problems and dilemma in the development of Bank J.Then,based on J Bank's business development and the current market conditions,the essay will give reasonable advice.This is to demonstrate how the commercial bank personal credit business under the Internet finance model should develop.This essay believes that in the background of Internet finance,the commercial bank's personal credit business can be completely migrated online,and the effective combination of the two is achieved,which will greatly increase the credit income of commercial banks.There are mainly four forms of commercial bank internet personal credit development.The first one is that commercial banks can transfer their traditional credit business online.The Second one is that commercial banks can develop their own internet credit products and corporate with big data companies to use big data to control risks.The third one is to corporate with good companies to explore the channels of promotion to get more customers.The forth one is to corporate with good internet credit platforms to extend the loan together.However,either form of success and development must be based on effective risk control and good market positioning.When commercial banks want to develop in the Internet financial market in a long-term and efficient mode,achieving its business updating,they must build effective risk control models and seize the opportunity of the market,and create win-win credit products to provide more good financial services to more customers.