Research On Credit Card Risk Prevention Measures For Small-and-medium-sized Commercial Banks

With the new generation of big data and internet,the credit card business of commercial banks is facing unprecedented opportunities and challenges.In recent years,in order to improve the marketization mechanism of credit card business,and promote the healthy sustainable development of credit card business,People's Bank of China has been issued a series of important files.As a significant part of consumer finance system for bank industry,credit card business is at the key stage of transition.According to the idea of “raising questions-analyzing questions-solving questions”,this paper applies literature review method,historical analysis method,case study method,and comparative analysis method.This study illustrates how to build effective risk control system for small-and-medium-sized(SMZ)commercial banks,under the utilization of all kinds of big data united credit card principle in the era of internet.Firstly,relevant theory of credit card risk and risk management is stated;secondly,this essay analyzes current situation and its potential risk of Chinese credit card business;in addition,this paper introduces the traditional risk control method,and then a deep exploration of newly risk control measures with the help of big data is presented,moreover,suggestions on the promotion of credit card risk prevention measures for SMZ commercial banks are proposed;finally,the paper got the conclusion.The article is summarized below:1.People's Bank of China,China Banking Regulatory Commission,together with other regulatory official has been issuing files in succession,which stimulates the development of credit card business,providing opportunities and challenges for SMZ commercial bank credit card business.2.Risk of credit card business includes external and internal,specifically include fraud risk,technology risk,and operational risk and so on.Meanwhile,more and more new pattern risk based on information data is arisen due to the rapid development of big data and internet,where SMZ commercial banks should pay more attention to.3.Risk management of credit card can be divided into several steps,such as customer access policy based on risk,risk mode deployment,multistage approval,post-loan monitor and backtracking analysis.Based on the practical case of credit card fraud and its sentence judgement,this paper studies the potential risk existed in each link of credit card business,and hence proper suggestions proposed.4.Compared with Large stated-owned banks,SMZ commercial banks have their own advantages and disadvantages.They can focus on the competitive activities,play to their strengths,and pay attention to improve the basic capacity and proper building of risk prevention system.5.Application of big data can effectively help credit card risk control for SMZ commercial banks,with the proper use of big data information provided by the industry and the third party.it is urgent to push the development of big data system.Since it helps to analyze the consumer behavior mode,thus implementing the effective grading for customers,makes it easy to diversify management.Different type or grade of customer,different risk prevention measures applies,and it is the future direction of credit card prevention.