NADS held the 8th "Theory and Policy" Seminar: Internet Lending Platform, Big Data Enhancement and Financial Technology Supervision

On May 11th, 2018, the National Academy of Development and Strategy (NADS) of Renmin University of China held the eighth “Theory and Policy” seminar. The guest speaker invited in this period was Professor Gong Qiang, Dean and PhD supervisor of the Wenlan College of Zhongnan University of Economics and Law. He has published more than 40 papers in well-known academic journals at home and abroad including Journal of Banking and Finance, Marketing Science, Economic Research, and Management World.

At the seminar, Professor Gong Qiang introduced his research on "Internet Lending Platform, Big Data Enhancement, and Financial Technology Supervision." He pointed out that the current risk of online loan industry is frequent, and China's Internet financial supervision has been continuously upgraded. The State has made provisions for the positioning of the Internet financial platform, bank depository issues, information disclosure rules, and investor suitability. However, in China, there is a problem that the structure of online lending is contrary to the applicability of information mediation. In China's lending structure, there are existing borrowers who are accustomed to rigid payments and borrowers with higher default rates. How can they promote Internet finance through reasonable supervision? The rational development of the P2P platform has become an important issue in China's financial supervision. In this context, Prof. Gong Qiang set up a theoretical framework that includes the timing of investment, the risk of information mediation, the recognition ability of credit platforms, and the identification capabilities of investors.

By constructing the platform lending model under information asymmetry, the feasibility of the functional positioning of platform information mediation and credit mediation is discussed. The article finds that if it can use regulatory technology to ensure the real-time and traceability of information and achieve effective supervision, then the platform is allowed to pass increasing data is an effective means to overcome information asymmetry and enable financial technology to truly serve inclusive finance. The final conclusion is that under the supervision of science and technology, the increase of big data can help the conclusion of inclusive finance. The article provides important feasible paths and theoretical support for supervising science and technology to support inclusive finance.

The seminar was hosted by Professor Yin Heng of NADS. Many teachers and classmates from both inside and outside the RUC took an active part in the seminar and had in-depth discussions with the keynote speakers on relevant issues.

(Article from Division of Teachers and Post-Doctor Affairs, NADS; Photo/Writing: Intern Liang Kun)