An Analysis of the Causes of Network Financial Risks
Source: Shangpin China |
Type: website encyclopedia |
Time: October 9, 2014
The reasons for the emergence of network financial risks, whether general or special, come from the following aspects: the network financial institutions themselves, customers, computer network systems, laws and regulations are not sound enough, etc.
1、 Reasons of Internet financial institutions
Lack of experience in the operation and management of online financial institutions is one of the main reasons for online financial risks. Internet finance is a new thing that emerged in the middle and late 1990s. For example, the first Internet bank in the United States has a history of only 10 years since its establishment. However, due to the time-space advantage of online finance, it is beneficial for financial institutions to strive for as many and as wide customers as possible, which is generally favored by the financial industry. Some traditional big banks have established their own Website Design Carry out online financial business. At the same time of the rapid expansion of the scale and customers of online finance, people lack sufficient experience in the operation and management of online finance, whether in business management concepts or in business management strategies, which will inevitably produce a series of problems, leading to various risks of online finance. For example, the world financial giant Citibank began to implement an ambitious plan to expand its customer base from 100 million to 1 billion relying on online financial services as early as 1997, and proposed to become a pioneer in online finance and e-commerce in the financial industry. However, recently, people accidentally found that the personal data (including credit card accounts) of 200 customers of the financial institution appeared on a hacker website in Russia. This was unexpected for Citibank, which shocked people and attracted great attention from Citibank and financial circles around the world.
2、 Customer reasons
The main reason why online financial risks come from customers is that the social credit system is not sound enough. Taking China's Internet banking as an example, the credit risk of Internet banking has become the main obstacle to the development of China's Internet banking business. According to a media report, a city court in China concluded more than 10000 lawsuits in 1999, accounting for more than 60% of all economic lawsuits, 80% of which were economic disputes directly caused by "pit, Mongolia, abduction, fraud" and other non credit behaviors. Only one local financial institution had to be the plaintiff for more than 100 times in a year because of its recourse for overdue loans. This reflects the lack of credit concept among people and between enterprises and banks in China's current socio-economic and financial operation, and the credit relationship is quite chaotic.
Any society, when its members are dishonest and do not have to pay the corresponding price or only pay a small price for dishonesty, the whole society will pay a high price for this, that is, interpersonal tensions, organizational relations are loose, economic development is blocked, national cohesion is reduced, and ultimately affects the development and progress of the whole society, endangering the competitiveness of the nation. China is in the stage of transition to a socialist market economy, the credit system is not perfect, there is a big gap with developed countries, and there is still a long way to standardize credit relations. Take the commercial credit provided between enterprises as an example. The amount of residual accounts receivable among enterprises in China is far higher than that in developed countries. In developed market economy countries, the amount of overdue accounts receivable between enterprises accounts for 0.25% - 0.5% of the total trade volume; In China, however, the ratio is more than 5%. In 1998, there were 2.89 million cases of economic disputes and civil disputes over creditor's rights and envoys accepted by courts all over the country, accounting for 51% of all cases accepted by courts. In European and American countries, credit payment between enterprises has accounted for more than 50%, and pure cash transactions have become less and less, accounting for only 5-10%; In China, many enterprises prefer to give up a large number of orders and customers. However, they refused to adopt credit settlement, and the proportion of cash settlement was as high as 30% - 40%.
In terms of personal credit, the current personal credit rating and record in China is still thick, which is a blank. It was not until 1997 that the medium - and long-term financial consumer credit began to develop in the fields of housing, durable consumer goods, etc. At present, the scale of consumer credit accounts for about 5% of the total scale of financial credit; The credit card lays particular stress on the saving function, and the consumption credit function it provides is very limited. In developed countries, consumer credit accounts for about 40% of the total scale of financial credit. On June 28, 2000, 1.8 million Shanghai citizens took the lead in having personal credit reports made by credit companies, and the personal credit system in mainland China is no longer blank. Shanghai's pilot joint credit reporting system has a history of more than 150 years in developed countries, and it is an important basis for the establishment of personal credit system. For online finance, credit is even more important, because many transactions are completed in a "virtual" environment without meeting. Without a perfect credit system, the development of network finance based on credit will face huge risks.
3、 Network system reasons
The currency of network finance appears in the form of electronic currency. The activities of electronic currency in the network are mainly represented by the storage and transmission of data. Whether it is storage or transmission, any problem in any link will affect the authenticity and correctness of data, thus affecting the accuracy of electronic currency activities, and causing incalculable losses. On August 21, 1995, a tightly fortified financial network system in the United States was attacked by hackers, resulting in a loss of up to 11.6 million dollars. According to the official statistics of the relevant countries, the amount of money stolen from the financial sector in the United States every year on the Internet is up to 60 million dollars. Computer high-tech crimes are also common in China. It can be seen that the most thorny problem faced by online finance is the security of online financial business transactions.
From the technical level, how to express the will of both parties through the network is how to ensure the authenticity, confidentiality and reliability of the data. The vulnerability and confidentiality of the network itself make the security issues of online finance more difficult. At present, most of the online finance is in the form of Web access, which is the most vital form of Internet services. However, there are many security loopholes in the application operating system of this network, the network application program and the TCP/IP protocol on which the network communication depends, and there are also some security risks in the main services on the Internet, such as e-mail, file transfer (FrP), remote terminal access and command execution, and the World Wide Web (WWW).
4、 The laws and regulations are not perfect and unified
The lack of sound laws is another important reason for the emergence of online financial risks. Due to the short history of the development of online finance, the obvious gap in the development of online finance in the world, and the lack of sufficient experience in the formulation of relevant laws and regulations, it must be gradually improved with the development of online finance business practice. In this process, we will inevitably encounter many unexpected legal and regulatory issues, which will lead to various legal risks.
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