Research On Transaction Risk Governance Of Internet Finance

At present,the development of Internet Finance is faced with frequent risks in China.In the process of the gradual introduction of the regulatory policy and the gradual establishment of the industry order,the study of Internet Finance in academia has gradually turned to the risks from the basic intension.On the one hand,scholars have different opinions on whether Internet finance is going to subvert traditional finance,On the other hand,there is lack of systematic and logical analysis of the causes of the current Internet financial risks.Taking transaction cost as a tool,this paper analyzes the internal logic in the evolution of the Internet Finance,including the trading channels,the form of transaction organization and the trading market,from the perspective of transaction.This paper puts forward the "Internet financial transaction mode",in which the small and micro trading parties deal with the financial transactions through the networked trading channels,which is constructed by the intermediary platform.Based on these analyses,It is considered that Internet Finance is a new trading system that forms technological subversion on traditional finance.In addition,it is an innovation and breakthrough in the form of financial transaction organization and complementary to traditional finance in the market.In the process of deconstructing the operating mechanism of the model,this paper associates the networked information channel before the trading process with the information processing of platform,the networked signing channel during the trading process with the financial resource allocation of the platform,the networked payment channel after the trading process with the transfer of funds.And platform's basic functions are very different from traditional intermediary agencies,including information processing,which is driven by data,financial resource allocation,which is the two-way flow,and transfer of funds,which can corresponding mobile terminal.Within the category of the "Internet financial transaction mode",combined with the analysis of its operation mechanism,this paper tracks the transaction risk of the Internet Finance back to its origin,which can be divided into three types:uncertainty related to objective environment,opportunism related to people's bounded rationality,technical problems related to the trading channel.Through analyses of the transaction risk's forming path,the study found that:uncertainty has three paths to form transaction risk,network channel is the necessary path to form transaction risk for opportunism,and technology problem can directly affect the small and micro financier.The analysis of Internet financial transaction risk governance is closely related to the characteristics of the "Internet financial transaction mode" and the formation mechanism of Internet financial transaction risk.Due to small and micro financier's information is extremely hard to know,decision-making is digressed from professional analysis,and counterparties are always strangers,incomplete information and information asymmetry intensified in internet financial transactions.So coping with uncertainty and governance of opportunism are extremely difficult.In fact,governance of Internet financial transaction risk is very complex,because intermediary platform is not only the subjection,but also the objection of the governance.Besides,the external technical standard should be built for the safety of the transaction,because the networked channel is a key link in the formation of the transaction risk.Further,focusing on the transaction risk governance of platform,this paper compares intermediary platform with traditional intermediary agencies by the means,which are proposed by Knight and Williamson.The research found that platform has some difficulties in governance the transaction risk:the lack of information collection and risk diversification.Besides,relationship governance is unrealistic in the short term.Ant Financial is the first Internet financial group to be profitable in China.It is the leading enterprise in the field of Internet financial operation.Ant's intermediary platform system has three parts:Alipay for payment,Sesame credit for information evaluation and Ant wealth for contract signing.Ant financial also has formed its system of transaction risk governance,which has comprehensive advantages in scope,effect,speed and quality,including four parts:Firstly,the transaction surveillance system,which is mainly constructed by "Intelligent wind control brain",can offer real-time protection,hold up and respond to questionable transaction immediately.Secondly,the transaction information circulation,which is constructed by Alipay,Sesame and Ant wealth,can improve the ability of accurate classification and prediction.Thirdly,Intermediary platform and traditional intermediary agencies can provide multiple paths of risk diversification by cooperation.Finally,intermediary platform system can governance financiers' opportunistic behavior,because the networked channel built by platform has used in many fields.But,there are some problems can't be ignored,on the one hand,the process of information processing is relied on technical methods,and the effectiveness of the methods is doubtful,on the other hand,Ant financial provide standardized services to financial institutions,based on these technical methods.Once the technical methods are deviant,the transaction risk will affect all of the financial institutions on Ant financial platform system directly.The consequence is more severer than traditional finance.Thus,intermediary platform should Learn from Ant's strong points and close the gap.Meanwhile,to guide the healthy development of the industry,government could promote diversity of the market,establish ordered withdrawal system for intermediary platform,and establish governance system of transaction between intermediary platforms and financial institutions.