A Comparative Study of Online and Offline Micro-loan Platform Modes

School of Bangor University, Bangor, LL57 2DG, UK

Abstract

With the continuous development of Internet technology and the rapid progress of the financial industry, more and more financial products have chosen the online business mode. The loan business system and risk control management system currently used by many financial institutions and banks can no longer meet the technological progress and customer needs. Therefore, in order to promote the development of the loan business, each online banking financial institution decided to plan to build a credit loan business system to improve the efficiency, risk and controllability of the credit loan business. The speed, openness and transparency of online microfinance platforms have formed a clear contrast with the high requirements, low risks and slow speed of offline microfinance platforms. More and more scholars have studied and discussed this. However, based on China’s national conditions, they have been compared from different aspects. Therefore, this paper will make a comparative analysis from four aspects: the generation of the two microfinance platforms, the people served, the loan products, and the risk control.