Automotive finance risk control in the end control what?

SP, as a provider of automotive finance services on the ground, the key to sustainable development lies in the ability to control risk. No good wind control, even if you can't see the problem at the moment, but sooner or later something will happen. At present, SP in the exhibition process are very much emphasized risk control, but also understand the seriousness of the impact of risk on themselves and their partners.

But there is a question, What do we really need to control in SP's risk control? I think only first understand what to control, and then think about how to control.

SP's business process

Risk control, my understanding is the result of a process management.

First of all, for the business process, it is necessary to clarify the role of each role in the business process.

Business process roles

Three views and four true judgments at the entry stage

All along, the SP will screen the customers according to the access requirements of the capital side's products in the process of business development, judge whether the customers can apply for the quota through this channel, and then the capital side will decide whether to give the applicant the quota according to the customer information and the principle of 5C. what the SP wants at the entry stage is the front end of the process. Three see four true judgment, to prevent moral hazard.

Application and approval stage product risk control

To do a good job of risk control, the method has always been to understand the product requirements, adhere to the most familiar and best understanding of the market first business, risk can be controlled before the next step of market development.

But it is not enough for the SP to measure whether the business is risky just by the product's risk control standards. Product approval requirements, more from the perspective of the capital as a starting point, through the product pricing model to determine the screening mechanism of the customer base, this screening mechanism is called product risk control. Simply put, it is the capital side to SP standards, so that SP to find the right customer groups on it.

SP's stage guarantee

But SP in addition to help funders to get customers, screening customers, in the cooperative relationship, or the stage of the responsibility of the guarantee. That is to say, SP can make the product wind control, not really control the risk. Still need to be in the business process, to be able to each node of the business process, may produce risk points for prevention and control, in order to truly protect the SP itself.

Lending stage collateralized lending method

What to do?

SP to do a good job of risk prevention, one of the most critical place, mortgage information.

Maybe many peers still do not know, the early automobile finance leasing company's lending requirements are first mortgage before lending. The reason is that at that time, the business process of auto financing and leasing was designed with reference to the process of the bank, and the customer information required was also more than that of the bank. But the process of the banking system, completely copied into the business model of the SP of auto financing is not applicable.

The process design at that time, the capital side of the direct release of funds to the car company, there is no SP in the middle of this link. This process design caused a lot of difficulties for SP to follow up, SP to collect post-loan information, but the money is already in the hands of the car dealership, the car dealership has no reason to take the initiative to cooperate.

Then the process was changed to the current process, the capital released to the car dealership by the SP collection, the SP through their own collection of post-loan information and vehicle collateral stage of the guarantee to grasp the ability to decide when the collection on behalf of the capital transferred to the car dealership.

That is to say, in this process, SP as long as you can do first mortgage before lending is no additional risk problem. However, such an operation will make the car dealership experience is not good, so the market appeared, in the mortgage process, different SP with different methods to complete the risk control: some SP is the first to release after the offset; there is the first collection of information, and then release, after the offset; some first with their own funds to advance. It can be said that each has its own way, to summarize is actually the SP's own business decisions on the balance of the market and risk control.

Each SP is independent, there are different advantages and resources in the market, and there is no formula to calculate who is good and who is bad. As long as the combination of their own strengths, to do in line with the market, can control the risk, is effective, but this is often the SP operators is the biggest test. The risk of controllable place is the real market, SP can not be blindly seeking scale, can control in order to intermittently do, can not control, would rather not do. This is responsible for their own, but also responsible for the partners.

SP business process risk control points

In summary, SP risk control, not just the implementation of product risk control, but SP operators in the completion of the stage before the guarantee, the business process of people, cars, scenes and product requirements of the results of comprehensive judgment and decision-making.