Author(s)

Yan Zhang, Jiamin Wang

Corresponding Author

Yan Zhang

ABSTRACT

As the advance of P2P online lending, it fully reflects the advantages different from traditional financial institutions. It provides a way for self-employed individuals and small, medium and micro-sized enterprises to find it difficult to borrow money, and also gathers investors' idle funds to help investors obtain higher returns. However, many risks of P2P lending are exposed due to problems such as platform running and capital chain breaking. Nowadays, the development of P2P online lending is facing a bottleneck. It is of practical significance to study the evaluation system of P2P online lending and how to better prevent and control platform risks. This paper studies the risks of P2P online lending industry under the mode of Internet finance. Firstly, it expounds the relevant theories of Internet finance, and then explains the general situation of the whole P2P industry, and analyzes five major financial risks. Then the analytic hierarchy process is used to establish the risk assessment system of P2P network lending industry. Finally, according to the results of risk assessment system, the paper puts forward corresponding Suggestions for P2P online lending industry. This study provides ideas for P2P platforms to evaluate their own risks and puts forward measures to prevent risks, so as to help P2P platforms break through the development bottleneck and move towards the long-term development road.

KEYWORDS

P2P network lending, Internet financial risk assessment, Analytic hierarchy process