Second, more hidden credit risk. The essence of Internet finance is to rely on network platform and big data technology to reduce the cost of information formation, transmission and utilization, which can theoretically effectively increase the allocation, transfer and pricing cost of credit risk across subjects and time. However, in practice, due to the problems of poor network information screening ability, imperfect credit information system and insufficient investor education, information distortion and "adverse selection" may actually become more subtle and have a wider impact.
Third, higher liquidity risk. Term allocation and gap management are one of the basic profit mechanisms of commercial banks. However, due to prudential regulations such as deposit reserve, risk provision, capital adequacy ratio and deposit insurance, there is a large space for risk mitigation, and the probability of uncontrollable liquidity risk is very small. Comparatively speaking, Internet companies are not bound by the above-mentioned system, and the substantial liquidity risk is greater.
Fourth, the risk of non-compliance operation. Due to the low barriers to entry and the lack of strict supervision, the number of Internet financial institutions has expanded rapidly. Most of them have no standardized governance structure and operation mechanism, which seriously deviates from the concept and culture of prudent operation of the financial industry, and potential risks generally exist in all aspects of business processes. The most typical example is that related party transactions are widespread, and some online lending and crowdfunding platforms are actually sharp tools for institutional self-integration; Various forms of franchise stores are flooding, and staff who do not have the ability to engage in financial business illegally solicit business; Some institutions "entrust" commercial bank outlets to sell products, and sell products under the guise of "endorsement" by commercial banks, which makes the above risks spread to the traditional financial system.
Fifth, related technical risks. Technical risk is the inevitable product of the combination of finance and information technology. Compared with traditional financial institutions, internet finance naturally has higher technical risks because it relies more on computer and network technology. According to the Measures for the Administration of E-banking Business of China Banking Regulatory Commission, the IT derivative operational risks of Internet financial services include at least the risks such as interruption of facilities and equipment, malicious invasion of the Internet, leakage of transaction data transmission, improper operation of employees, and lack of customer information security experience.
Sixth, public opinion leads risks in one direction. The rapid development of Internet finance in China has won many reputations such as "inclusive finance" and "grassroots finance", but the potential risks are rarely mentioned. In the market environment with insufficient investor education, the tendentious and unitary public opinion atmosphere is more likely to stimulate blind "herding effect", which makes rational expectations not properly guided.
What are the possible risks of Internet finance? The first is the risk of credit default, that is, whether Internet wealth management products can achieve their promised return on investment. The global economic growth is sluggish, the potential growth rate of China's economy is declining, the domestic manufacturing industry is generally overcapacity, the domestic service industry is not open enough, and the risks of the shadow banking system are gradually emerging.
The second is the risk of maturity mismatch, that is, the investment assets of Internet wealth management products have a long maturity, while the liabilities have a short maturity. Once the liabilities cannot be rolled on time, liquidity risk may occur. Of course, a major function of financial institutions is to convert short-term funds into long-term funds, so financial institutions will face different degrees of maturity mismatch, and the key is the degree of mismatch.
The third is the lender of last resort risk. Although commercial banks also face the risk of maturity mismatch, and the wealth management products issued by commercial banks also face the risk of credit default and maturity mismatch, an important difference compared with internet finance is that commercial banks can finally get the lender of last resort support provided by the central bank. Of course, this kind of support is expensive. For example, commercial banks must pay 20% of the statutory deposit reserve and their capital adequacy ratio must be higher than 8%.
Regulatory requirements for risk provision and liquidity ratio. In contrast, Internet finance is currently facing a pattern of lack of supervision, so its operating cost is low and it lacks lender of last resort protection.
In addition to the above traditional risks, China Internet financial products also face a series of unique risks:
The first is legal risk. At present, the internet finance industry is still in a state of no threshold, no standard and no supervision. This has caused some Internet financial products (especially wealth management products) to wander between legal and illegal, and a little carelessness may touch the high-voltage line of "illegally absorbing public deposits" or "illegally raising funds".
Second, it has increased the difficulty of the central bank's monetary and credit regulation. On the one hand, the innovation of Internet finance makes the central bank's traditional intermediate goal of monetary policy face a series of challenges. For example, should virtual currency (such as Q currency) be included in M 1? For another example, because Internet finance companies are not bound by the statutory deposit reserve system, this actually leads to the amplification of the currency multiplier.
The third is the risk of personal credit information being abused. First of all, Internet finance companies obtain personal and corporate credit information through data mining and data analysis, and use it as the main basis for credit rating. Secondly, whether the information obtained through the above channels can truly, comprehensively and accurately measure the credit risk of rating subjects, and whether there are selective deviations and systematic deviations.
The fourth is information asymmetry and information transparency. As mentioned earlier, the Internet finance industry is currently in a state of lack of supervision. Is there an independent third party that can manage this risk? How to prevent internet finance companies from stealing from inside? After all, the survey shows that only about 20% of P2P companies on the Internet have professional risk control teams.
The fifth is technical risk. Unlike traditional commercial banks, which have highly independent communication networks, Internet finance enterprises are in an open network communication system, and the security of TCP/IP protocol itself is facing great criticism. However, the current key management and
The imperfect encryption technology makes the internet financial system vulnerable to computer viruses and network hackers. At present, considering the high risk of internet financial accounts being stolen, many people are prevented from participating in internet finance, among which financial or IT professionals are by no means. Therefore, Internet companies must continue to invest heavily in their own trading systems and data systems to ensure security, which will undoubtedly increase the execution cost of Internet finance companies and weaken their cost advantage over traditional financial industries.
To sum up, since Internet finance enterprises in China are facing so many risks at the initial stage, should this be used as an excuse to slow down or even stifle this valuable financial innovation? The answer is naturallyno. All parties concerned should fully consider the potential risks and promote the steady and sustainable development of Internet finance.
What are the possible risks of Internet financial lending? The risk of loan is lower than that of investment. Anyway, I feel this way, but even if it is a loan, I have to find a reliable institution. After all, personal information security is more important. My friend is taking a credit loan from Flash Bank, and the loan is very fast. It was approved in 3 minutes.
How to avoid the possible risks of Internet finance? First, it will never be responsible for its own profits and losses. The word P2P refers to peer-to-peer lending service, which is essentially an intermediary of financial information. The self-financing platform does not conform to the definition of P2P, and it absolutely violates the clear stipulation that the top ten regulatory principles should not be self-financing. In addition to some obvious self-financing platforms, some platforms cheat investors by forging information and fictional borrowers. Therefore, investors need to carefully check whether the borrower information disclosed by the platform is complete and detailed before making an investment decision. Usually, the formal information disclosure platform will choose to connect with the authoritative information system of the industry, record and publicly display the information of the platform project, and make it truly transparent for investors to choose.
Second, put an end to the fund pool. Fund pool refers to raising funds in advance and then looking for investment or lending channels. The risk is that the creditor's rights and debts of each lender and borrower cannot correspond to each other one by one, and the source and destination of funds are difficult to track. Therefore, the platform will face great liquidity risk, which will eventually lead to the break of the capital chain and the inability to repay the lender's funds.
According to experience, investors can judge whether there is a pool of funds in a platform in the following ways: the borrowers and lenders of a mature platform should be decentralized. If some IDs appear frequently on a platform, there may be false loans on this platform, whether it is a lender or a borrower.
Third, the dispersion is small. Inclusive finance is not only an idea, but also an effective way to control risks. Different from banks, adhering to the absolute principle of small amount dispersion is the basic principle of P2P platform risk management. Judging from the current situation, P2P is a useful supplement to the traditional financial system. Traditional financial institutions have systems to serve large customers, and P2P industry can be more flexible and focus on supplementing existing financial system services.
Fourth, never pursue high returns. After choosing a safe and high-quality platform, investors still need to invest according to their actual situation. When investors choose P2P platform, it depends on whether the project income is within the safe range, and the higher the income, the better. The higher the interest rate, the greater the risk. Give priority to investment in products that are safe and reliable, with clear creditor's rights and debts and no maturity mismatch.
Is internet finance risky? The basic requirement of finance is safety, emphasizing risk control. The Internet is characterized by openness and convenience. When security meets convenience and risks meet openness, information security, operational risks, credit and supervision are all unavoidable issues that Internet finance must face. What are the problems? What are the risks? Here we are. ...
What are the risks of the top ten Internet financial traps? 1. Ponzi scheme: an ancient financial trap of "robbing Peter to pay Paul" in a shiny coat.
Second, virtual currency: Bitcoin has triggered all kinds of trendy scams that follow suit.
Third, consumer rebate: a network pyramid scheme trap disguised as public welfare consumption
Fourth, illegal P2P platform: the false target of high interest rate temptation
Verb (abbreviation of verb) consumer finance cashing: the credit line of online shopping platform has become the concentrated place of illegal gold-absorbing industrial chain.
6. Loan commission: "Loan commission" has become the most common form of online loan fraud.
Seven, "routine loan": the geometric growth of the victim's debt.
Eight, online loan fees: focusing on people who are in urgent need of loans to defraud fees and commissions.
9. Fake website: Forge the real website address or page.
X. Internet foreign exchange financing: investment platforms under high packaging are easy to set traps.
What are the potential risks of Internet finance? The first is the risk of credit default, that is, whether Internet wealth management products can achieve their promised return on investment. For example, Alibaba's Yu 'ebao has a current yield of less than 5%, and the nature of Yu 'ebao is a money market fund. However, Baidu Baifa's expected rate of return is as high as 8%, which makes us wonder, what is the basic asset of Baifa's final investment? In the global economy ...
This is relative. Internet finance is profitable, but it also has risks. The main risks of interconnection are:
1: Investment funds are missing.
2. The invested company absconded with money.
3. Too much manual intervention and unreasonable charges.
4. Cash withdrawal is difficult
How to prevent and control risks in Internet finance The primary task of the financial industry is to do a good job in risk prevention and control. As a financial information service industry, risk prevention and control is the top priority. Wen Kang, CEO of Yitong Loan, said: "Safety is the core of the whole business. For P2P practitioners, risk prevention and control is the previous 1, and the rest are all 0. " He suggested that the P2P platform build a risk prevention and control system through business model, platform system, system construction and transaction security.
Is Internet finance risky? The risk is relatively high.
It is suggested that the landlord can learn about the integration of Guangzhou and business, the third-party fund custody and the guarantee of principal and interest.