A Research On The Risk Management Of Consumer Finance Business Of China’s Internet Bank

Along with the change of generational,consumption idea,the continuing growth of residents’ income,and the enrichment of consumer financial products consumer finance has achieved growth in high-speed in recent years,the penetration of consumer credit is accelerating.Banks,Internet micro loan companies and many e-commerce platforms have stepped into the field of consumer finance,they integrated their resources and layout scenarios,thus forming a multi-institutional and multi-field competition pattern.At the same time,the China banking regulatory commission has approved 17 private bank since 2014,nine of them position as Internet bank,seven of nine layout the consumer finance business,they rely on the electric business platform or big data background,Owe to their accurate customer orientation,flexible mode of operation they have achieved a explosive growth.However,with the expanding of credit base,the risk of this industry also exposed gradually,brings a series of challenges for their long-term development.Domestic research on the development of Internet bank and the risk control of consumer finance business is still lack of practical experience at present,with the continuously improvement of regulatory framework,the risk of internet bank gradually exposes.It’s very necessary and urgent for the consumer finance business of internet bank to establish a risk management system which is in accordance with its own characteristics.This paper use the method of case analysis,literature research,qualitative analysis,based on the case of "micro loan" from Webank,we analyze the business risk and financial risk of "micro loan",through a series of research,we come to conclusion as follows:(1)the business risk and financial risk in operating process are often the common risk of major internet bank consumer finance business,their source is different,the solution is also different;(2)Based on the overall internal control and risk management of "micro loan",we achieved full comprehensive risk management in three dimensions,it could be used to enhance the level of risk management of other industry for reference;(3)Regulatory requires consumer financial institutions to operate in compliance with several aspects,including license,product pricing,leverage,data protection and the loan recovery.Internet bank consumer finance business faces opportunities and challenges under the new regulatory framework,they should devote to the compliance management.Innovation of this paper lies in:(1)As the first and the largest consumer financial product among internet banks,the risk of "micro loan" has certain representativeness,this study of focus on a typical example,and rise to a level of the whole industry,is a combination of special and representative,it could highlight the common risk of industry;(2)Domestic studies of internet bank stays in aspects of legal regulation,exploration of market position,account opening at remote.The present studies rarely use the method of overall internal control and risk management.This paper built a comprehensive risk control platform for internet bank consumer finance business,and it could be the industry reference.(3)Based on the risk analysis and the comprehensive risk management system construction of "micro loan",we rise to the level of industry,put forward some detailed measures or policy advices to three related subject,its internet bank,self-discipline organization and regulators,this paper achieved the comprehensive point of view.this paper also has some weakness.First of all,the source of data is relatively little,lots of internet bank revealed no financial data,we can only study the case from the overall regulatory environment,product design and product distribution.Secondly,due to the limitations of the author’s research ability and theoretical knowledge,quantitative analysis of some risk indicators is lacking,we would further deepen this paper though the method of quantitative analysis.