2020, Volume 22, Issue 6
Strategic Study of CAE >> 2020, Volume 22, Issue 6 doi: 10.15302/J-SSCAE-2020.06.013
Financial Retail Payment Risk Control: Current Status, Challenges, and Countermeasures
1. Institute of Cyberspace Security Science and Technology, Shanghai Jiao Tong University, Shanghai 200240, China;
2. China UnionPay Co., Ltd., Shanghai 200135, China;
3. National Engineering Laboratory of Electronic Commerce and Electronic Payment, Shanghai 201201, China
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Abstract
The development of financial openness, inclusive finance, and financial technologies in China is transforming and upgrading its financial retail payment industry from high-speed to high-quality growth; consequently, the risks for financial retail payment currently present a more complex and severe situation. The COVID-19 epidemic has changed people’s consumption and payment habits and raised new topics on risk control of financial retail payment. This study explores the demand for risk control of financial retail payment in China by analyzing the new characteristics of financial retail payment and the deficiencies in the risk control. It then summarizes the current status of the risk control and the major challenges from seven aspects: compliance performance, account management, transaction monitoring, credit evaluation, data security, identity verification, and technical risks. We conclude that the establishment and improvement of a comprehensive risk management system and an intelligent risk control system that match the complex and severe situation is the key to financial retail payment risk control. Furthermore, we propose several countermeasures specifically from five aspects: data sharing, intelligent model, system design, management system, and talent training.
Keywords
financial retail payment ; payment risks ; risk control ; financial crime ; financial intelligence
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