TU-TESL

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The picture comes from "123rf" auto finance in compliance with regulations before it can survive. "Auto financing companies have never been defeated by competitors in the industry, because they have not done a good job in risk control and have been killed by themselves." Recently, a senior professional expressed his feelings to us. On October 23, the CBRC, the national development and Reform Commission, the Ministry of industry and information technology and other nine departments jointly issued the notice on printing and distributing the supplementary provisions on the supervision and management of financing guarantee companies (hereinafter referred to as the supplementary provisions). As mentioned in the supplementary provisions, without the approval of the supervision and administration department, auto dealers, auto sales service providers and other institutions shall not engage in auto consumption loan guarantee business, and the stock business already carried out shall be properly settled. The domestic auto finance industry has developed for more than 20 years. After four stages of germination, outbreak, adjustment and revitalization, it has entered the stage of diversified competition since 2008. In 2016, China's auto finance entered the era of trillion yuan. In the 2019 China auto finance industry research report, yiou think tank predicted that the scale of China's auto finance market would reach 2.4 trillion yuan by 2020. "Impetuosity" exposed the risk control short board in the face of the temptation of the trillion level blue ocean market of auto finance, the industry began to be impetuous, the inclusive auto financial services, full of routines. In April this year, the event of safeguarding the rights of female owners of Xi'an Benz opened the scar of potential rules and charges in the process of auto financial services. As early as 2012, the CBRC issued the notice on rectifying the irregular operation of financial institutions in the banking industry, which stipulated that financial institutions should not lend loans or provide financing in other ways, requiring customers to accept unreasonable intermediary business and other financial services To charge a fee. On October 21, 51 credit card was investigated by relevant departments due to suspected violent collection and provocation of entrusted outsourcing collection company, which once again put the financial industry in the forefront of public opinion. On the same day, the Supreme People's court, the Supreme People's Procuratorate, the Ministry of public security and the Ministry of Justice jointly issued the notice on Several Issues concerning the handling of criminal cases of illegal lending. For those who violate state regulations, without the approval of the regulatory authorities, or beyond the scope of business, and for the purpose of making profits, regularly issue loans to unspecified objects of the society and disturb the order of the financial market, if the circumstances are serious, they shall be punished according to the criminal law Article 225 (4) of the law shall be convicted and punished for the crime of illegal business operation. Under the situation of strict supervision of the auto finance industry, a large number of illegal operations have been caught. Since the end of 2018, some banks have issued more than 10 tickets for illegal car staging business. It is reported that the bank is involved in auto finance and highly relies on auto dealers and guarantee companies, which has great potential risks. In 2018 alone, four auto financing companies in the industry received seven tickets totaling 2.55 million yuan, the Financial Times reported. From banks to auto finance companies, they are frequently fined, which directly exposes the shortcomings of auto finance industry in risk prevention and control, internal control and management. If auto finance related enterprises want to avoid fines, they need to reduce the risk index in the operation process. Therefore, the position of risk control in the automotive financial industry is increasingly prominent. In order to expand the scale, the enterprise relaxed the examination of the applicant's information in the early stage, which increased the risk of loan. A personage in an industry told yiou that compared with Internet finance companies, traditional auto finance companies will pay more attention to risk control, while Internet finance companies first pursue the maximization of scale, and then do risk control. In October this year, the middle-level managers of Honggao financial leasing company, a local auto finance enterprise in Hunan Province, who has been operating for 8 years, were suddenly informed that due to the company's poor operation, difficult capital turnover and business stagnation, they are now informing all departments to organize their own staff meetings and announce that the company has entered the stage of bankruptcy. The construction of China's credit system started late, and the personal credit system and management system were short board, which increased the probability of automobile financial risk. The frequent occurrence of chaos in the automobile industry stems from the weak risk control ability of the platform and the lack of risk control awareness, which directly leads to the brutal growth of bad debt problems such as loan fraud and overdue loan. At present, the sales volume of new cars in China has declined for 15 consecutive months. Although the second-hand car market has a broad prospect, the relevant detection rules of second-hand cars are vague and the industry needs to be standardized. Therefore, enterprises need to maintain the attitude of "being in danger", in addition to making information transparent in terms of financial consumer rights and interests, from the perspective of industry trend development, they should do a good job in risk control from the source, which is also a means for companies to reduce costs and increase efficiency. Automobile financial risk control mainly involves risk management and control, that is, in the risk environment, to minimize it, including risk identification, risk estimation, risk evaluation, risk control and risk management effect evaluation. Risk control will reduce the possibility of risk events. Due to the risk behaviors of customer fraud, identity theft, inaccurate vehicle valuation and vehicle second offset in the process of auto financial services, auto finance companies must pay attention to their own risk management in the context of strong supervision while accelerating their expansion. The risk control ability is determining the life and death of an auto finance company. Some domestic auto financing companies mainly adopt a more traditional risk control method, which has a complicated process. There are more than ten steps before and after the submission of data, preliminary review, final lending and post loan collection. The links are lengthy, the level of risk control is uneven, and risk problems naturally arise. These problems can be effectively solved by intelligent risk control means such as big data risk control of people and vehicles, online monitoring of vehicles, etc. With the development of science and technology, financial science and technology has begun to penetrate into various sub areas including auto finance. Nowadays, the financial technology under the aggregation of artificial intelligence, cloud computing, big data, blockchain and other technologies has stepped out of a large number of intelligent risk control enterprises. Its application in automobile finance is mainly to improve the level of risk control, which is in the transition stage from the pure artificial era to the intelligent risk control. Intelligent risk control is widely penetrating the whole auto finance industry chain, and constantly building a moat. In traditional auto finance, offline labor is the first checkpoint to guard the risk control. Due to the low efficiency of human audit and weak awareness of risk control, and even some personnel rely on experience to judge risks, there are inevitably a large number of "missed fish". By using intelligent risk control technology, we can avoid some market downside risks, strengthen risk management, avoid bad debts and overdue risks, so as to reduce costs and maximize profits. Based on financial technology, intelligent risk control is playing an important role in auto finance before, during and after loan. In the pre loan stage, the risk model is optimized through big data to improve the risk control ability, early warning of default risk is carried out in the loan, the overdue loan collection method after the loan is optimized, violent payment collection, telephone debt collection and other bad means are eliminated, and the credit data of automobile financial service process is collected for the next round of service credit collection, forming a credit closed-loop, supporting secondary marketing, etc. (source: elion think tank) according to the data of China Automobile Association, from January to September 2019, the cumulative sales volume of domestic automobiles was 18.371 million, down 10.3% year on year. In the cold winter of automobile market, it is very important to establish an intelligent risk control decision-making system based on financial technology for automobile financial enterprises to survive from the gap between supervision and the decline of automobile sales. The domestic auto finance industry has entered the stage of diversified development, and the head effect is becoming more and more significant. A well-known industry figure, who asked not to be named, told yiou auto that as the industry went down, auto financing enterprises must be in danger. Under the strict financial supervision and the survival of the market, the auto finance industry has entered the elimination track. After a round of compliance reshuffle, auto financial enterprises can also improve their internal skills. Only by strictly observing risk control and business innovation can they stabilize their own industrial moat.