Harnessing Internet finance with innovative cyber credit management

Abstract

In the last two decades, Internet technologies, such as cloud computing, mobile communications, social media, and big data analytics, have brought tremendous changes to our society and reshaped the business in various industries. Specifically, the mushrooming innovations in the financial area fertilized by information and communication technologies indicates the advent of the Internet finance era. Applying the exploratory research approach, we investigate major innovative Internet-based financial services and classify them into five categories, as of e-commerce, e-payment, e-money market, online loan services, and digital currencies. Then we propose a market structure of Internet finance extended from the traditional financial market. We claim that credit management is the key issue in the marketplace of Internet finance, characterized by big data analytics, in which cyber credit appears as whole-process, multi-dimensional, and holographic. We further suggest that cyber credit be represented in the form of vector to overcome the limits of traditional single-value measure in cyber credit management. Based on this framework, we raise main research issues in Internet finance from the perspectives of theory, technology, and governance.

The impact of FinTech start-ups on incumbent retail banks’ share prices

“…This phenomenon has greatly affected the taxi and hotel industry, in which Uber and Airbnb have largely replaced the traditional services by offering decentralized online peer-to-peer platforms (Cannon and Summers, 2014). Since FinTech start-ups follow the same customer-centric approach by offering alternatives such as peer-to-peer lending (Lin et al, 2015;Wang et al, 2015a, b;Wang et al, 2015a, b;Yan et al, 2015), one might expect a shift in the banking industry as well. Researchers apply consumer theory to examine whether digital banking start-ups indeed negatively affect traditional retail banks.…”

Value of big data to finance: observations on an internet credit Service Company in China

“…Due to the availability of data from multiple sources, 100Credit is able to provide multiple dimensions of assessments of credit rating as suggested by (Lin et al 2015). In 100Credit, such assessments include aspects on daily consumption, online reading, credit card expense, social relationship, flight travel, and location/contact update.…”

“…Credit management is the basis of the financial industry (Lin et al 2015). When lenders provide loans to individuals or companies, they need to assess the borrowers' credit risk to reduce the possibility of bad debt and decide the amount of the loan.…”

A group decision model for credit granting in the financial market

“…Mustafá et al 2018described financial innovation as an essential element of monetary action and argued that financial development generated systemic changes in the financial market through the improvement of financial services. Lin et al, 2015 focused on the advances in technology, stating that, in the last two decades, Internet technologies, such as cloud computing, mobile communications, social media, and big data analytics, have generated tremendous changes in our society and reshaped the business in various industries. The mushrooming innovation in the financial area nurtured by information and communication technologies determined the advent of the internet finance era.…”