Rapid Development Of Internet Finance Research Articles

Early Warning for Internet Finance Industry Risk: An Empirical Investigation of the P2P Companies in the Coastal Regions of China

Ma, L.; Wang, Y.; Ren, C.; Li, H., and Li, Y., 2020. Early warning for internet finance industry risk: An empirical investigation of the P2P companies in the coastal regions of China. In: Gong, D.; Zhang, M., and Liu, R. (eds.), Advances in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 106, pp. 295–299. Coconut Creek (Florida), ISSN 0749-0208.Recent years have seen the rapid development of Internet finance in China, and various peer-to-peer (P2P) lending platforms have been released. However, the emergence of diverse problems, such as absconding with the money and fraudulent platforms, has exposed the lack of supervision of P2P lending platforms. This paper collected 26 dimensions of data from 1292 P2P companies in the coastal regions of China from third-party websites. Risk warning and machine learning were incorporated to construct a risk warning model for P2P lending platforms. This model consists of a decision tree model, naive Bayes model, and support vector machine model. Correlation analysis was used to analyze the data source, which is the data predicted by the above models, and the target variables. Type I error rate was utilized to determine the optimal model. The conclusions are as follows: The indicators of registered capital, changes of business scope, and platform background have a great impact on the accuracy of P2P risk prediction; the decision tree model is capable of predicting problematic platforms; and the decision tree model, support vector machine model, and naive Bayes model have a descending order in accuracy. Hence, the decision tree model is the best model for risk warning.

LAW: Learning Automatic Windows for Online Payment Fraud Detection

The rapid development of internet finance has caused increasing concern in online payment fraud due to its great threat. It is typical to employ rule systems or machine learning-based techniques to detect frauds. For the most significant features of such fraudulent transactions are exhibited in a sequential form, the sliding time window is a widely-recognized effective tool for this problem. With a sliding time window, features about the transaction characteristics can be extracted, and the latent patterns hidden in transaction records can be captured. However, the adaptive setting of sliding time window is really a big challenge, since the transaction patterns in real-life application scenarios are often too elusive to be captured. As a matter of fact, the practical setting usually needs to be updated and refined with manual intervention regularly. This is time-consuming indeed. In this article, we pursue an adaptive learning approach to detect fraudulent online payment transactions with automatic sliding time windows. Accordingly, we make efforts on optimizing the setting of windows and improving the adaptability. We design an intelligent window, called learning automatic window (LAW). It utilizes the learning automata to learn the proper parameters of time windows and adjust them dynamically and regularly according to the variation and oscillation of fraudulent transaction patterns. By the experiments over a real-world dataset of the online payment service from a commercial bank, we validate the gain of LAW in terms of detection effectiveness and robustness. To the best of our knowledge, this is the first work to make a sliding time window for fraud detection capable of learning its proper size in changing situations.

Research on Internet Financial Consumer Rights Protection in China

Along with the rapid development of Internet finance in China, the irregularities in Internet finance industry has violated the Internet financial consumer rights at many levels. Learning from domestic and foreign experience, the improvement on the legislation on Internet finance, the financial supervision system and the Internet financial consumer dispute resolution mechanisms should be achieved, so as to enhance the protection of Internet financial consumer rights.

FCM-Based P2P Network Lending Platform Credit Risk Dynamic Assessment

With the rapid development of Internet finance, Peer to Peer(P2P) network lending has also developed as a new type of financing. However, as the P2P network lending platform becomes more and more popular, problems such as running, shutting down, and withdrawing cash are emerging. One of the most common problems is caused by credit. This paper addresses the issues such as credit problems and existing risks of online platforms by proposing a Fuzzy Cognitive Map (FCM) that is used to establish a credit risk assessment model for the P2P network lending platform. It provides a new idea for the credit risk assessment of online lending platforms. The paper uses Lu Jinfu as an example to evaluate its credit risk and selects two other platforms to rank its credit risk. The results show that the fuzzy cognitive map considers the mutual influence and feedback between the indicators. The index weight matrix learned by historical data represents the relationship between the indicators. After inputting the initial data into the inference, the index data reaches a steady state. The steady-state refers to the state that we expect the indicator to reach after a certain period. As an objective evaluating method for the credit risk of the P2P network lending platform, the proposed method has demonstrated its advantage and effectiveness.

Research on the Relationship between Rural Financial Exclusion and Agricultural Modernization

The dependence of agricultural modernization on finance is strengthened. What is the impact of this strengthening on Rural Financial Exclusion? This paper used variation coefficient method to construct the index of rural financial exclusion, analyzed the agricultural modernization process score and the index of rural financial exclusion by the Pearson correlation coefficient. The results showed that Rural Financial Exclusion hindered the development of agricultural modernization, and the construction of agricultural modernization is an effective means to eliminate the rural financial exclusion. The above conclusions are obtained on the premise of the rapid development of Internet Finance and the change in the form of expression of rural financial exclusion.

Reflection on Big Data Technology: Problems and Countermeasures in "Big Data Credit Reporting" of Internet Finance in China

With the rapid development of Internet finance in China for the past few years, big data credit reporting agencies specifically for network credit information have been initially established. An analysis on the technology application, characteristics and operational difficulties of big data credit reporting shows that big data credit reporting in China still has many problems such as inefficiencies in privacy protection, illegal operation, credit reporting standard difference and credit rating model, etc. during its development. Therefore, the above problems can only be resolved if the future development of big data credit agencies in China will be standardized on a risk prevention basis without limiting the market creativity.

Research on the Disposal of Non-Performing Assets in Internet Financial Times

There have been some problems in the rapid development of Internet finance, and the most typical one is the non-performing assets of Internet finance. Tremendous nonperforming assets of Internet finance not only have influenced the integral security of financial industry, but brought enormous pressure to social economic development. Based on the point, this paper firstly analyzed the factor of non-performing assets of Internet finance and discussed the necessity of improving the disposal of nonperforming assets in Internet financial times. Finally, it put forward the specific suggestions on how to dispose non-performing assets in Internet financial times, including the premise of policy formulation, the emphasis of standard development, the key of platform construction and the assistance of standard collection.

Research on the Impact of Internet Finance on Risk Level of Commercial Banks

The rapid development of Internet finance has continuously changed the mode of operation of China’s financial system. Under the backdrop of China’s entry into a new normal economy, slowing economic growth, and a grim situation, the impact of Internet finance on traditional financial models based on commercial banks is extremely huge and far-reaching. Therefore, we should thoroughly investigate the risk exposure of commercial banks in the context of Internet finance, study the two-way impact mechanism of Internet finance on bank risk exposure, and how Internet finance generally affects the risk behavior of banks. This stabilizes the Chinese banking industry and the stability of the entire financial system has important practical significance. This paper uses the loan loss readiness rate as an explanatory variable to try to model, construct the Internet index as an explanatory variable, and select the control variables from macroscopic and microscopic perspectives, including macroeconomic level, bank capital adequacy ratio, bank capital return rate, and banking concentration. Degree, bank loan-to-deposit ratio, and asset size, through the regression analysis of the GMM model, access to the data of 26 listed commercial banks from 2006 to 2016, striving to theoretically sort out the impact of Internet finance on commercial bank risk-taking, combined with empirical research. The in-depth study of the impact of Internet finance on commercial banks’ risk-taking will provide theoretical and practical reference opinions for commercial banks to improve the risk-taking situation.

A Study on the Current Situation and Problems of Family Finance

With the rapid development of Internet finance and disambiguous finance, the financial industry development and innovation are changing with each passing day. The financial industry has entered into a mixed operation and a new era of comprehensive management. Family financial management has become a necessary tool for wealth management. The public has constantly set up investment and financial management has become a new boom in current financing market. But there are still some errors about the public’s understanding of financial management:, a scientific and rational financial concept has not been established; in the absence of professional knowledge of financial management, investment banking blindly follow the trend; the lack of long-term planning of family wealth management, pension, medical education; children’s rigid planning is not enough. Based on the theory of life cycle, through the empirical investigation and analysis, the paper puts forward some countermeasures and suggestions for the current situation and existing problems of family financial management.

Research on Financing Cost of Small and Medium-Sized Enterprises by Internet Finance

Small and medium-sized enterprises (SMEs) as an important part of the national economy, are the main carrier of “public entrepreneurship, innovation” under the new normal of the current economic, and its development and growth is essential [1]. However, the financing difficulties have long restricted the development of SMEs. Because of their own characteristics, SMEs can hardly obtain the funds needed for their own development through traditional financing ways. The rapid development of Internet finance has opened the way for the financing of SMEs. This article discusses the ways of financing under the traditional financing mode and the reasons why it is hard to get financing. By summarizing the financing channels of SMEs on the Internet platform and analyzing their impact on the financing of SMEs, and then gives some policy recommendations.

China’s personal credit reporting system in the internet finance era: challenges and opportunities

ABSTRACTThe credit reporting system plays an important role in a credit economy, alleviating information asymmetry and reducing transaction costs. This article reviews the historical developments and describes the current structure of China’s government-oriented personal credit reporting system. The article summarizes the rapid development of Internet finance since 2013, and analyzes the challenges and opportunities for the next generation of China’s personal credit reporting system.