Consumer Finance Industry Research Articles

SWOT Analysis of Chinas Internet Finance under the Background of the Epidemic Take Ant Finance as an Example

Under the current epidemic situation, China's Internet finance has achieved unprecedented rapid development and wide application. As the world's leading Internet open platform under Alibaba, Ant Financial is a typical representative of China's Internet finance industry. The sudden epidemic has continued to this day, which has had a huge impact on the Internet consumer finance industry. In response to this phenomenon, I conducted a SWOT analysis of Ant Financial in the context of the normalization of the epidemic, and gained a new understanding of its strength, weakness, opportunities and threats. Combined with my analysis, I hope to draw effective suggestions for the development of Ant Finance or China's Internet finance industry in the post-epidemic era.

A new hybrid credit scoring ensemble model with feature enhancement and soft voting weight optimization

The explosive development of artificial intelligence (AI) has reshaped all aspects of life, including credit scoring. At the same time, the rapid expansion of the consumer finance industry has led to a huge demand. In this study, a new hybrid ensemble model with feature enhancement and soft voting weight optimization is proposed to achieve superior predictive power for credit scoring. For mining and characterizing the implicit information of the features, a new voting-based feature enhancement method is proposed to adaptively integrate the outlier detection and clustering capabilities through the weighted voting mechanism to form a feature-enhanced training set. To balance the feature-enhanced training set precisely and effectively, a new bagging-based undersampling method is proposed to obtain a balanced training set by undersampling from the negative binomial distribution through the bagging strategy. To maximize the performance of the model, a new weight-optimized soft voting method is proposed to optimize the soft voting weights of the base classifiers in the classifier ensemble using the COBYLA algorithm and then constructing the stacking-based ensemble model. Five datasets and five evaluation indicators were used for evaluation. The experimental results demonstrate the superior performance of the proposed model and prove its robustness and effectiveness.

Impact assessment and execution strategies of fintech in consumer finance: Paving the way forward

The increasing adoption of FinTech has revolutionized the consumer finance industry, providing innovative solutions that cater to the needs of consumers. FinTech companies disrupt established financial institutions and challenge the status quo, resulting in a dynamic and rapidly changing landscape. However, the success of FinTech in consumer finance depends on its impact execution, which involves the ability to deliver measurable and sustainable outcomes. This requires a comprehensive understanding of the market, a deep understanding of consumer needs, and the ability to effectively execute strategies that meet these needs. This paper examines the significance of FinTech in consumer finance to perform a comprehensive SWOT and PESTEL analysis of FinTech in consumer finance. Moreover, this is attempting to find out the opportunities and challenges of FinTech in the context of consumer finance and investigate trends of FinTech in consumer finance. By implementing the strategies outlined in this paper, FinTech companies can continue to drive innovation, increase access to financial services, and deliver measurable consumer outcomes.

Big Data Credit Report in Credit Risk Management of Consumer Finance

Traditional consumer finance is a modern financial service method that provides consumer loans to consumers of all classes. With the gradual improvement of China’s credit reporting system, big data credit reporting has effectively made up for the lack of traditional credit reporting and has been widely used in the consumer finance industry. In this context, the in‐depth analysis of the specific application of big data credit reporting in the credit risk management of consumer finance and the strengthening of the research on the application of big data credit reporting in the credit risk management of consumer finance are urgently needed to be resolved in the economic and financial theoretical and practical circles’ problem. This article mainly studies the research on credit risk management of consumer finance by big data. The experimental results of this paper show that the model has a good forecasting ability, can distinguish between normal loan customers and default loan customers, and is suitable for practical personal credit risk control business. The prediction accuracy of the default model of the fusion model is 97.14%, and the default rate corresponding to the actual business is 2.86%. By combining the risk items such as the blacklist and gray list in the Internet finance industry, the bad debt rate and illegal usury can be well controlled to meet industry supervision.

Enforcement by the Consumer Financial Protection Bureau: An Empirical Analysis of Director Kraninger’s Leadership

The Consumer Financial Protection Bureau has been steeped in partisan controversy since its founding in 2011. While generally championed by those on the left, many on the right have been skeptical if not hostile to the Bureau’s mission. The Bureau’s enforcement regime has unsurprisingly evolved depending on the political alignment of its Director. Under Director Richard Cordray, who served under President Barack Obama, the Bureau pursued an aggressive enforcement policy throughout the consumer finance industry. Conversely, under Acting Director Mick Mulvaney, who was appointed by President Donald Trump, such activity came to a near standstill. Many expected President Trump’s permanent nominee, Kathleen Kraninger, to continue Mulvaney’s retrenchment. Yet, after two years at the helm of the Bureau, Kraninger surprised many, primarily by launching enforcement actions at a rate not dissimilar to the Cordray era. This is the first full empirical study of Director Kraninger’s complete enforcement record. The article analyzes every Kraninger-led enforcement action by a wide variety of data points, including legal theories and remedies used. In doing so, this article will provide industry observers and practitioners, when coupled with preexisting studies on Cordray and Mulvaney, a complete record of CFPB enforcement as of January 2021. The data ultimately suggests that Kraninger’s enforcement policy was a blend of her predecessors: while she was fairly aggressive in launching enforcement actions like Cordray, the severity of penalties and remedies imposed was generally less punitive, hewing far closer to Mulvaney’s style of enforcement.

Accounting for Product Impact in the Consumer Finance Industry

We apply the product impact measurement framework of the Impact-Weighted Accounts Initiative (IWAI) in two competitor credit card providers within the consumer finance industry. We design a monetization methodology that allows us to calculate monetary impact estimates on cardholder access to credit, affordability for merchants, financial health, and recyclability, among other factors. Our results indicate substantial differences in the impact that competitors have through their products. These differences demonstrate how impact reflects corporate strategy and informs decision-making on industry-specific areas.

A Research on the Development of Artificial Intelligence and Consumer Finance in China

Consumer finance refers to provide consumers with various financial services to meet consumer needs. China’s consumer finance is at a quick development stage, and its future is very promising. Although it has experienced a rapid development for the consumer finance industry in China, there are also many development problems: (1) The legal norms and regulation of consumer finance are not inadequate. (2) Problems arising from the over-development of “cash lending”. (3) The development problem of the scenario consumer finance. (4) Consumer finance competition is becoming increasingly fierce and challenged by disorderly market competition. (5) The problem of contradiction between financial technological innovation and consumer rights protection. With the rapid development of financial science and technology, artificial intelligence is also deepening its application in the field of consumer finance, including credit reporting, intelligent risk management, intelligent marketing, intelligent customer service, intelligent collection and intelligent regulation. Consumer Finance which is combined consumer and finance is gradually infiltrated by Artificial Intelligent. Consumer finance companies will rely on more help of machines and Artificial Intelligent to develop consumer finance. Although there are many challenges and problems in consumer finance at present, Artificial Intelligence will have more applications in the field of consumer finance, so as to make consumer finance smarter.

Research on the Risk Control of the Finance Industry Among Teenagers

Teenager consumer finance has launched a variety of service modes: JD Xiaoyuan Baitiao, Ant Check Later, Mingxiaodai network lending platform and so on, thus promoting the development of teenager consumer finance. This paper elaborates the definition of teenager consumer finance, analyzes the reasons for its rise and development stages, and points out four main service modes of teenager consumer finance. Through the collection and comparison of the literatures, it is found that the teenager consumer finance industry faces four risks and the corresponding countermeasures are proposed. Finally, by taking Fenqile as a specific case, the paper analyzes the latest measures taken by the industry to respond the risk control and reaches the expected research purpose.

KETAHANAN SEKTOR KEUANGAN DAN SHADOWBANKING: ANALISA TERHADAP INDUSTRI PEMBIAYAAN DI INDONESIA

The failure of supervision instrument on shadow banking practice in the US has triggered financial collapse and spread accross sovereignities. The G20 has asked FSB to undertake in depth analysis of shadow banking progress along with needed recommendations to overcome the weaknesses. This paper attempts to analyze the shadow banking practice in Indonesia particularly in the consumer finance industry by using the flow of fund analysis recommended by FSB and several relevant financial ratios. The size of credit intermediation in this industry only accounts for 3% of GDP compared to bank credit accounting for 30% of GDP in 2011, however the credit growth in finance industry has superseded banking sector. The consumer finance industry are dominantly reliant on bank lending and bond which reduces the susceptibility of market shock. The asset securitization is not common in this industry. The financial sector authority has imposed strick regulation on this industry to ensure industry's financial health. Despite industry's ability to meet those requirements, the high dependency on debt for operation has raised concern for stronger equity increase. Further, the expansive credit intermediation in this industry can bring liquidity problem which requires further regulation.

The Non-Qualified-Mortgage Conundrum

In the midst of the painfully slow recovery from the financial crises and the promulgation of regulations implementing the “ability to repay” and “risk retention” rules mandated by the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010, the availability of residential mortgage credit to American consumers, especially those with blemished credit histories, has shrunk dramatically. Has the consumer finance industry overreacted to the ability-to-repay and risk retention regulations enacted under Dodd–Frank? This article examines whether the consumer finance industry should consider making loans that fall outside the “qualified mortgage” and “qualified residential mortgage” safe harbors and discusses the risks and rewards to the industry for pushing the boundaries of these Dodd–Frank parameters. <b>TOPICS:</b>MBS and residential mortgage loans, financial crises and financial market history, credit risk management

'Whose Choice are We Talking About? The Exclusion of Students with Disabilities from For-Profit Online Charter Schools'

By examining the history of special education law against the emergence of the for-profit and online education movements, this paper explores the development of charter school policy from a consumer law perspective. It aims to explain why much of the current debate over test scores, “accountability,” and teacher evaluation obscures other systemic faults that implicate the very reasons we have a public education system in the first place. In the last fifteen years, information technologies have fostered the emergence of a new kind of school: the fully-online “cyber” or “virtual” charter. These schools, operated almost exclusively by for-profit, publicly-traded companies, are growing rapidly. As in the consumer finance industry, where the development of derivatives moved faster than the ability of regulators to ensure their safety, the virtual education world is largely unregulated. Over the past decade, clear and convincing evidence has emerged that for-profit charter schools are not adequately maintaining their fiscal and educational responsibilities to students with disabilities. Online schools are both knowingly and unknowingly discriminating against students with severe disabilities. The profit motive at online schools incentivizes them to do whatever they can to avoid serving the students who cost the most to educate. This kind of discrimination is broadly illegal and threatens the development of the American public school system as a whole. Unless we make a conscious effort to holistically reform the public education system, we will not be able to adequately uphold the democratic principles on which American education is based.

Disclosure – An Unappreciated Tool in the CFPB’s Arsenal

Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) establishes the Consumer Financial Protection Bureau (“the Bureau”). Dodd-Frank defines a broad mission for the Bureau. According to the legislation, the Bureau will “implement and, where applicable, enforce federal consumer financial law consistently for the purpose of ensuring that all consumers have access to markets for consumer financial products and services and that markets for consumer financial products and services are fair, transparent, and competitive.” The Bureau has produced considerable anxiety in the consumer finance industry. Most of the anxiety has focused on two issues – who will head the Bureau and what will the Bureau do with the newly created power to ban “abusive” products. This article suggests that the financial services industry should be focused on a third question – what will the Bureau do with its power to regulate the disclosure of consumer financial services.

Disclosure - An Unappreciated Tool in the CFPB's Arsenal

Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) establishes the Consumer Financial Protection Bureau (“the Bureau”). Dodd-Frank defines a broad mission for the Bureau. According to the legislation, the Bureau will “implement and, where applicable, enforce federal consumer financial law consistently for the purpose of ensuring that all consumers have access to markets for consumer financial products and services and that markets for consumer financial products and services are fair, transparent, and competitive.” The Bureau has produced considerable anxiety in the consumer finance industry. Most of the anxiety has focused on two issues – who will head the Bureau and what will the Bureau do with the newly created power to ban “abusive” products. This article suggests that the financial services industry should be focused on a third question – what will the Bureau do with its power to regulate the disclosure of consumer financial services.

Harnessing Customers9 Transaction Data for Efficient Operations: A Case of Debt Collections in the Consumer Finance Industry

With the burgeoning financial services industry in India, service providers increasingly face the risk of their loans becoming bad and consequently leading to a charge-off loss as indicated by the accumulation of non-performing assets. Efficient back-end operations, based on a systematic analysis of customer characteristics, can ameliorate the situation. This paper describes the process of designing such an efficient back-end process developed by the author at a large retail bank in the United States. It also discusses the scope and limitations of extending the applicability of the model to the Indian financial sector and provides learnings for managers in the financial service sector on efficient design of their debt collection processes.

A Study of Business and consumer privacy : Ethics of Information Management in The US Consumer Finance Industry

A Study of Business and consumer privacy : Ethics of Information Management in The US Consumer Finance Industry

The Cost Structure of the Consumer Finance Industry

This paper estimates the cost function of the consumer finance company industry to explore the questions of existence of scale economies and elasticity of costs by loan size. Using a more appropriate functional form and much newer data than in earlier studies, this study confirms their general conclusion that economies of scale in the industry are limited at the firm level but exist at the office level. Scale economies are found only at smaller offices, however; and they become exhausted as office size increases. Elasticity of operating costs with respect to loan size is shown to be well less than unity.

The Small Loan Rate Cycle in the Ohio Consumer Finance Industry, 1960–1969, and Its Impact Upon Independent Consumer Finance Companies and Their Higher Risk Borrowers: A Case Study*

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BOOK REVIEWS

Books reviewed in this article:Chapman, John M. and Robert P. Shay, Licensed Lending in New York.Kawaja, Michael, The Regulation of the Consumer Finance Industry: A Case Study of Rate Ceilings and Loan Limits in New York State.Furuhashi, Y. Hugh and E. Jerome McCarthy, Social Issues of Marketing in the American Economy.Hunter, Beatrice Trum, Consumer Beware.Katona, George, Burkhard Strumpel, and Ernest Zahn, Aspirations and Affluence.Simon, Julian L., Issues in the Economics of Advertising.Warmke, Roman F., Wyllie, Eugene D., Wilson, W. Harmon and Eyster, Elvin, Consumer Economic Problems.

Factors Affecting Price, Volume and Credit Risk in the Consumer Finance Industry

Factors Affecting Price, Volume and Credit Risk in the Consumer Finance Industry

Factors Affecting Price, Volume and Credit Risk in the Consumer Finance Industry: Discussion

Factors Affecting Price, Volume and Credit Risk in the Consumer Finance Industry: Discussion