Credit Risk Management Research Of Company A’s Automobile Finance Leasing Business

With the rapid development of China’s economy,the automobile industry become one of the pillar industries in China.At the same time,China’s automobile market is unprecedented.As one of the most valuable and potential links in the automobile industry,automobile finance has increasingly been focus.On this conditions,one of the important subcategory of automobile finance,automobile finance leasing has experienced four-years development and also came to a substantial growth.However,automobile finance leasing is a kind of credit business,which has strong cyclical characteristics.At present,the main customers are mostly low-income,blank or incomplete credit,which put higher requirements for the credit risk management ability of automobile finance leasing companies.Starting from the research on automobile finance leasing,credit risk management and Big Data by scholars,this paper expounds the relevant experience of credit risk management of automobile finance leasing business at home and abroad,and compares and analyses the current situation,existing problems and causes of credit risk management of automobile finance leasing business of Company A.This paper puts forward some enlightenments to optimize the credit risk management of company A’s automobile finance leasing business,and then discusses how to improve the credit risk management.This paper consists of 6 chapters,Chapter 1 is the introduction part,and the main text is from Chapter 2 to Chapter 6.Chapter 1 states about the background of the paper,literature review,the paper framework and the significance of this research.Chapter 2 is about the related concepts and policy environment analysis.Firstly,introduces the related concepts,the operation mode,the credit risk and credit risk management of automobile finance leasing business.Finally,analyses the policy environment of automobile finance leasing in China from two aspects of legal and regulatory environment.Chapters 3,4 and 5 are the main sections.Chapter 3 firstly introduces the relevant experiences at home and abroad,and then summarizes the inspiration for company A.In the foreign part,analyzes the most representative experiences of American automobile finance leasing industry and Ally Financials risk management experiences;in the domestic part,analyzes the related experiences of the leading domestic industries of PINGAN leasing and YIXIN leasing.Through the relevant experiences from home and abroad,company A is inspired that Big Data is the basis of credit risk management,and it is necessary to build the whole process of risk monitoring system.Chapter 4 describes company A’s current situation,the status of credit risk management of automobile finance leasing business,the existing problems and reasons.Company A started from the used car field and officially launched the automobile finance leasing business in November 2016,mainly on automobile direct leasing business.It developed rapidly in the past two years and has been in the forefront of the industry,which has a certain representativeness.The existing problems in the credit risk management are universal in the industry,such as the serious external dependence on credit risk management,the imperfect credit risk control mechanism,the simple and extensive marketing and collection,etc.The main reasons are:insufficient accumulation of Big Data,incomplete function of its own model;imperfect organizational structure,team’s comprehensive qualities need to be improved;high dependence on dealers and exposure to external risks.Chapter 5 systematically discusses how to improve company A’s credit risk management ability based on existing problems and reasons.Macro perspective:should speed up the construction of personal credit information system,clarify the relevant industry regulations and regulatory rules,and accelerate the training of Internet financial risk control talents.Micro perspective:establish a large data risk control platform;optimize the whole life cycle management of credit risk;establish a win-win cooperation mechanism with dealers;improve the organization structure and employ more related talents.Chapter 6 draws four conclusions based on the whole text:direct leasing is the development trend of automobile finance leasing,needs strict and appropriate regulatory environment,must pay attention to the accumulation of Big Data,insist on technological innovation,continuously improve the ability of risk control and actively use Big Data to solve industry pain points.This chapter also states the shortcomings and prospects of the thesis.The paper’s innovation is research perspective.Firstly,research on direct automobile leasing business from the perspective of credit risk management,which was less studied in the past.Secondly,deeply research on Big Data’s application in credit risk management of automobile finance leasing business,to deal with the difficulty of risk control for incomplete or blank credit customers.