A Case Study On Consumer Loan Asset Securitization Of Ant Credit Pay

Over the past five years,China has gradually entered a new normal economy.Among the various factors that promote China’s economic growth,consumption has been ranked first.In 2018,China’s consumption expenditure accounted for 76.2%of GDP growth,and the consumption guidance of government departments and the change of consumption concepts of urban and rural residents have jointly promoted the development of consumer finance in China.At the NPC and CPPCC in March 2019,the government work report once again emphasized the expansion of consumption,and proposed to promote consumption upgrading and provide necessary consumer financial support.At present,Internet finance companies have launched consumer loans,these loans are not only limited to online shopping,but also have penetrated into many offline scenarios such as billing,transportation,tourism and so on.They can more conveniently and quickly meet the consumer needs of users.Therefore,Internet consumer loans have been recognized by more and more people in recent years.This makes the scale of Internet financial enterprises in consumer loan business continue to expand,thus facing a difficult problem,that is,the source of lending funds.Due to the restriction of policy and cost,the effect of traditional financing methods is not ideal.Under this background,asset securitization projects can pack enterprise’s consumer loan assets into asset pools and sell them into negotiable securities on the market,so that new funds can be obtained to continue to be used in consumer loan business and realize large-scale financing.Based on the Internet Financial exploration of asset securitization financing,this paper selected the case of Ant Financial Services Group issuing asset-backed securities of Ant Credit Pay consumer loan.After sorting out the theories related to asset securitization,this paper studies this case,and concludes that the motivation of this project is to meet the expanding financing demand and enhance asset liquidity at a lower cost.On the basis of collecting the latest data,this paper objectively evaluates the effect of securities issuance.The financing cost of this special plan is low and cash flow can cover the payment of securities principal and interest.By comparing the financial data of Ant Financial Services Group in recent years vertically,it is believed that asset securitization can indeed play a role in optimizing financial structure.But there are still some problems in credit reporting,risk isolation and product liquidity.In view of these problems,this paper proposes that Ant Financial Services Group can unite with the People’s Bank of China,public security departments and financial institutions to improve the credit reporting system and realize personal credit;relevant government departments may consider enacting laws specifically for asset securitization to promote risk isolation mechanism to play a better role;at the same time,it is suggested that the planned managers should relax investor restrictions and introduce market makers to enhance product liquidity at the beginning of the establishment of the plan.By analyzing the advantages and problems in the process of Ant Credit Pay Asset Securitization,this paper hopes to provide some useful ideas for the asset securitization of Internet financial enterprises to help them solve the financing problems,so as to promote the future of Internet financial enterprises to continue to provide better and more comprehensive services for the consumer credit needs of customers.