Research On The Credit Risk Management Of JD Baitiao Users

In 2015,it was called the first year of Internet consumer finance.In this year,the scale of transactions in the Internet consumer finance market reached an explosive growth of 1180%.As of 2017,the overall transaction scale of China's Internet consumer finance is close to one trillion,and various consumer credit products are also emerging one after another,not only stimulating consumer demand,but also relying on consumption to boost the rapid development of the economy,but the risks behind such huge credit assets.The problem should not be underestimated.With the continuous development of the industry,in recent years,Internet consumer finance has experienced several outbreaks of risk spillovers,such as campus loans and other vicious incidents,which have attracted the attention of the government and the community.For the healthy development of the Internet consumer finance industry,the government has begun to tighten regulatory policies.Although the industry development will encounter an ice age in the short term,it is necessary and beneficial for the future development of a regulated and mature industry.The future regulatory trend will inevitably be tightened,which puts higher demands on the risk management of Internet consumer finance companies.Since Internet consumer finance is inclusive,the essence of its business lies in tapping the consumption needs of long-tail customers.Therefore,there are certain commonalities in the risk management issues of major factions.This paper first introduces the development status and competition pattern of the Internet consumer credit industry.With the deep consumption of Internet consumer finance in different fields,three major forces have been formed.First,consumer finance developed on the basis of the huge flow of e-commerce platform,represented by Ant Financial,JD Finance and Suning Finance;one type is pure consumer finance company,which is the early stage of the consumer finance industry due to the layout of the Internet.It has a first-mover advantage,represented by BOC Consumer Finance,Beiyin Consumer Finance,etc.There is also a type of internet transformation of commercial banks,such as China Merchants Bank Consumer Finance.Then,taking the risk management method of Jingdong Baitiao,the first Internet consumer financial product in the industry,as a case,using the combination of qualitative analysis and quantitative analysis,it points out the problems in the specific measures of credit product risk management and analyze possible causes.Jingdong Baitiao is essentially a cash lending service for credit-worthy customers.Users pay with Baitiao in the shopping process,and then choose to postpone or install the payment.In the later stage,JD Finance carried out the reorganization and rating of the Baitiao instalment claims,and sold them to financial institutions,thereby reducing the financing cost and obtaining liquidity in advance.At present,the Baitiao ABS products have been listed for four periods.This paper first introduces the development status and competition pattern of the Internet consumer credit industry.Then,taking the risk management method of Jingdong Baitiao,the first Internet consumer financial product in the industry as a case,analyzes the specific process of JD.com in risk assessment,risk supervision and risk transfer.Using the combination of qualitative analysis and quantitative analysis,the validity of the data is verified by frequency analysis and correlation analysis,and the logit model of Jingdong Baitiao user credit evaluation is constructed to quantify the credit risk factors by personal data such as age,gender,marriage,occupation,education,etc.and the behavioral attribute data such as the average annual consumption,the average annual consumption amount,the return ratio and the bad evaluation ratio of Jingdong Mall as the independent variables,and the occurrence of the default event as the dependent variable,by means of multi-layer regression,the above 9 influence coefficient of the independent variable on the user's borrowing risk is based on Jingdong Baitiao as a model to explore the potential risk factors of Internet consumer financial products.Finally,it draws on the advanced experience of European and American developed countries in the regulatory policy and personal credit reporting industry,and puts forward relevant suggestions for the improvement of personal consumer credit risk management in China's Internet financial institutions.