Empirical Analysis On The Default Risk Internet Consumption Installment

Accompany with China’s "Internet plus" strategic,Internet installment consumption has gone through rapid development over the past years.However,due to the imperfect credit system construction and the technical flaws of the platforms’ risk control system,the number of default cases has been on the rise.As a result,the high risk behind the high profit of the business is gradually emerging.Therefore,researching on the factors of the default risk has great practical significance for platforms to optimize their strategy so that it can better avoid the risks while gaining benefits.By studying the development environment and the trend of internet consumption installment,and searching mainstream credit risk theory and its related literatures,this paper tries to research the causes of the default of this business.Through in-depth discussion on the internet consumer credit platforms’ operation mechanism,this paper studies the sensitive factors that affect the default rate from two basic aspects,the basic information of lenders and specific borrowing transactions.At the same time,this paper introduces Logistic regression model to analyze the installment consumption data of an Internet company,and concludes that the both basic information of borrowers and the single installment transaction information has significant influence with default rate.Based on the above research results,this paper points out that the platform should strengthen the management of default risk and put forward some suggestions for improvement from three aspects: establishing a scientific and effective personal credit evaluation mechanism,encouraging borrowers to verify personal information and strengthening the monitoring of credit risk.