Credit Risk Management of Consumer Finance Based on Big Data

In recent years, China’s consumer finance has developed rapidly, but the foundation is unstable, and the industry has serious problems of violent competition, excessive credit, and fraud. Therefore, we should attach great importance to the healthy development of consumer finance, especially the management of its credit risk. The application of big data credit investigation can provide early warning of potential risks and prevent the risk of excessive credit investigation. This paper starts with the definition of basic core concepts, such as traditional credit investigation, big data credit investigation, and consumer finance, analyzes the performance and causes of consumer finance credit risk, and combs in detail the relevant theories of the application of big data credit investigation in consumer finance credit risk management. The application of big data credit investigation has optimized the risk management process of consumer financial institutions, deepened the concept of Internet consumer finance, improved the risk management system, created a diversified credit information system, and strengthened the innovation of Internet consumer finance products and services. For example, credit scores provide the most intuitive quantification of consumer credit risk. For consumers with different levels of credit scores, different credit approval processes can be matched. For customers with high scores, the work process can be simplified without affecting the work results. It can reduce the workload of employees by 20% and increase the accuracy of customer credit risk prediction by 16%.