Case Research On Influencing Factors Of Sustainable Management Of P2P Platform

P2P online lending is a form of non-governmental loan that can use modern internet technology to carry out lending business on the Internet.A P2 P online loan platform refers to an intermediary institution that uses Internet technology to provide financial information and facilitate individual and individual direct lending in accordance with certain borrowing rules.P2 P network lending provides new ideas for solving the problem of financing difficulties for small and micro enterprises,and is a useful supplement to China’s traditional financial system.The development of the P2 P online lending industry in China since 2007 has experienced a period of rational development from the budding period of industry development to the period of crazy expansion.During the expansion period,the transaction volume of the P2 P online loan industry increased rapidly,and the number of platforms also increased sharply.However,due to large competition in the industry and high customer acquisition costs,profits did not increase simultaneously,and the entire industry was in a loss state.At the same time,due to the lack of supervision,China’s credit system The incompleteness of the industry and the accumulation of industry risks have led to the occurrence of multiple P2 P platform run-outs and failures in the industry in recent years.In 2017,under the constraints and guidance of supervision,the P2 P online loan industry entered a period of rational development.Small-scale platforms faced reshuffles,and large-scale platforms also faced the crisis of retreat or transformation.This article selects Lu Jinfu,which has a more complete development model and risk control mechanism,to compare with Hongling Capital to find out the problems in the development process of Hongling Capital.It has important guiding significance for the continued development of other P2 P online loan platforms in China.Under the guidance of information asymmetry theory,transaction cost theory,platform economicstheory,and internet finance theory,firstly,this paper analyzes the development of China’s P2 P online lending platform from four aspects: industry development background,development history,regulatory policy and industry development status.It is find that China’s current regulatory policy for the P2 P industry is becoming more detailed.meanwhile,the industry size,popularity,and average annualized return rate are showing a downward trend.Secondly,After analyzing the basic situation,operating conditions,product types and business processes of Lu Jinfu and Hongling Capital,this paper compare the difference of their operating model,asset side,risk control management mode and profit model,then conclude some conclusions: First of all,Lu Jinfu and Hongling Capital both have some potential risk due to their operating model.Credit risk and guarantee risk are the common risks of the two platforms.Product risk,capital mixing risk,and liquidity risk are unique risks of Hongling Capital.Secondly,from the perspective of the quality of the asset side,Lu Jinfu’s asset side is better.Third,from the composition of the senior management,Lu Jinfu’s executives both have work experience in the traditional financial and fintech fields,relatively speaking,Lu Jinfu’s management team can better grasp the characteristics of small amount,decentralization,and inclusiveness in the P2 P online loan industry when making decisions.Fourth,in terms of risk control management quality,Lu Jinfu’s overdue rate is lower than most platform,while Hongling Capital has a high bad debt rate,and each project has a large amount of bad debts.Fifth,in terms of profit model,Because Lu Jinfu’s asset side is relatively high-quality and has a high degree of protection,it has high operating income,but the customer acquisition cost it pays to the parent company is much higher than the industry’s average customer acquisition cost,so Lu Jinfu’s net profit may be artificially depressed.Most of the operating income of Hongling Capital comes from the net worth target without real currency requirements,and most of its operating costs are used to advance overdue borrowings,which cause the profit model of Hongling Capital is unsustainable.Sixth,from the current regulatory side analysis of the two platform,finds out that the compliance cost of Hongling Capital was relatively high.Finally,based on the above conclusions,this paper proposed that P2 P online loan platforms should reduce operating risk,improve the information disclosure system,the quality of assets,risk control capabilities and improve the personnel training system.