What are the risks of P2P platforms?

Hong Kong Xintong-Today I will introduce to you the risks of P2P，Let’s learn together!

one、The concept of P2P financial management platform P2P financial management refers to borrowers and investors through the Internet platform，The P2P financial management industry, which is a person-to-person financial behavior for financing and investing, has experienced explosive growth in my country in recent years.，However, P2P financial platform scams and other scams occur repeatedly，Therefore, how can P2P financial management platforms improve platform risk control?，It is an important issue for the industry and the platform itself at the regulatory level. This article briefly explains the relevant concepts and development status of P2P financial management.，Analyzed various risks existing in P2P platforms，and proposed relevant measures to address these risks.。

two、Risks of P2P platforms 1、Policy and legal risks P2P online lending platform is a networked private lending intermediary，At this stage, my country’s specific situation regarding “Online Lending Laws and Regulations: General Principles of Civil Law”, Contract Law, etc.，There are currently no specific laws and regulations to specifically restrict and regulate，The business activities of online lending platforms make it possible that P2P online lending platforms may touch the legal red line of illegally absorbing public deposits and illegally raising funds. This is why more incidents have occurred so far this year.。

One of the reasons for the disappearance of online lending platforms is the lack of relevant legal constraints. Not only that，There is no clear market access system for P2P online lending platforms，According to data monitored by the China E-Commerce Research Center，2013Only 11 P2P online loan platforms have registered capital exceeding 10 million in 2019，There is a huge gap between the amount to be repaid, most of which is 5 million, and the average amount to be repaid, which is over 10 million.，It can be seen that the lack of market access system has reduced the overall quality of Internet financial platforms.。

1. Regulatory Risks The China Banking Regulatory Commission, the People's Bank of China and other departments have warned about the risks associated with P2P online lending.，Relevant personnel from the China Banking Regulatory Commission also expressed their views on P2P regulatory ideas.，This shows that relevant departments are paying attention to the steady development of P2P online lending.。However, the regulatory authorities have not issued a specific regulatory system for P2P online lending or even clearly stated the regulatory body for P2P online lending.。

A P2P online lending platform that is free from regulation，Making it difficult for the country to fully grasp relevant market data。With the booming development of P2P online lending, the effectiveness of policies issued by the China Banking Regulatory Commission, the People's Bank of China and other departments may be weakened due to the lack of complete statistical data. In addition, due to the lack of corresponding supervision, the development of P2P online lending is restricted by various business models.。

There is no unified industry standard for different platforms with the same model，A market that lacks regulation is a free market。But if there is no regulatory body to restrain it and guide it to develop in a better direction, it will be difficult for P2P online lending to develop in the long term.。3、Money laundering risk: Online lending platforms do not yet have a complete customer identification mechanism and suspicious transaction analysis and reporting mechanism.，This creates conditions for money laundering for criminals。

Low threshold based on P2P online lending，Money launderers can easily become participants，They can lend their illegally obtained money to borrowers in batches through online platforms, turning large amounts into small amounts, and then recover the funds to turn the money from illegal to legal.。my country's anti-money laundering law has not yet covered the field of Internet finance. P2P online lending platforms may develop into new places for money laundering under legal loopholes.。

In addition, our country’s legal system specifically targeting cyber economic crimes is not yet complete, which also provides opportunities for money launderers.。4、Operational risk in P2P online lending，There is a large amount of capital exchange between the borrower and the lender，An intermediate account is required for operation，But regulation is still in a vacuum。at present，Many P2P companies generally claim to use third-party payment platforms to achieve fund custody，But in fact, only one public virtual account was opened。

Although users can see the usage of funds，However, the third-party payment platform has no right or obligation to supervise the account.，The actual allocation of funds is still in the hands of online lending companies。Due to the lack of strict management and use procedures、There are no corresponding fund custody regulations，Business personnel of online lending companies or the company itself can easily misappropriate account funds，There is a high level of moral hazard。

If funds are invested in restricted industries or used for other improper purposes，It will induce disguised solicitation of reserves、illegal fund raising、Other risks such as loan sharking。also，The online mode also imposes higher obligations on network software and hardware facilities and operators.

Require

，It is difficult to avoid the risk of information loss such as large-scale technical crisis or hacker intrusion。5、Network Risks Network risks in online lending mainly include network technology risks and information security risks.。

The emergence and development of online lending are inseparable from advanced information integration technology and data mining technology，Superb Internet technology is a beneficial tool for P2P online lending， However, strong technical support requires abundant funds to ensure。

However, P2P online lending cannot guarantee that the Internet technologies of various business platforms are fully used. Most of the technical systems of new P2P online lending platforms come from third parties, with prices ranging from tens of thousands to hundreds of thousands of yuan. The designers of the platform may not fully consider the possible risk points in operation because they do not understand the corresponding business processes well. Such a system may have high-risk security vulnerabilities.，making it vulnerable to hackers。

In addition, P2P online lending platforms have not yet established a complete risk control system.，Users’ financial security and information security are not well protected.。Both parties to the transaction on the P2P online lending platform must submit personal information on the Internet, have personal accounts, and record all transaction data. Whether the user's computer or the server's computer is attacked by hackers or otherwise compromised.，Personal data is easily leaked and poses a greater threat to personal rights and interests.。

Internet technology is the essence of P2P online lending，If the relevant cyber risks are not taken seriously，The development of online lending will be hindered by it。6、Credit risk The credit risk of online lending mainly comes from borrowers and P2P online lending platforms.。

For borrowers, when borrowers finance on P2P online lending platforms，You must first submit supporting materials such as the owner’s identity information, business license, bank statement, etc.，The P2P online lending platform then provides a credit rating to the borrower by authenticating these information.，However, it is difficult to evaluate the reliability and authenticity of these data，It contains the possibility of fraud, which increases the risk of default at maturity.。

2014In January of this year, due to the large number of overdue borrowers,，As a result, Guangrongdai’s borrowers’ deposits of more than 10,000 yuan cannot be withdrawn. For the P2P online lending platform,，Some P2P online lending platforms fail to fulfill their information review obligations，Failure to detect in a timely manner or acquiescing to borrowers publishing a large amount of false loan information on the platform，Some platforms even directly lend out illegally raised funds at high interest rates to earn interest differentials.。

If you still want to know more about this aspect，Welcome to consult Hong Kong Xintong at any time!

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