Analysis of the Credit System of Internet Consumer Finance Companies

Abstract

As an important part of consumer finance, Internet consumer finance plays a vital role in leading innovation and promoting consumption, and thus deserves great attention. Therefore, this paper focuses on the construction of the credit system of Internet consumer finance companies, adopting a research approach that combines theoretical analysis and case studies. Through theoretical analysis, we found that the credit scoring system has evolved from expert scoring cards and machine learning models to artificial intelligence; through case studies, we observed that in the process of constructing the credit system, not only technological innovations have emerged, but also the sources of credit information have undergone significant changes. This study systematically sorts out the development process of the credit system and compares the differences between Internet consumer finance credit risk and traditional credit risk, such as differences in information sources and technical levels. Meanwhile, this paper also identifies that the Internet consumer finance credit system, which relies on big data as its information source, carries certain risks.