TY - GEN
T1 - How to choose an online financial product
AU - Wang, Yeyu
AU - Chen, Lanting
AU - Yang, Wenjing
AU - Zhu, Shengxin
N1 - Funding Information:
ACKNOWLEDGEMENT We would like to thank the anonymous reviewers’ constructive feedback which sufficiently improves this paper. The research is supported by Key Special Research fund of XJTLU(KSF-E-21), Research Development Fund of XJTLU (RDF-17-2-23) and XJTLU Summer Undergraduate Research Fellowship.
Publisher Copyright:
© 2020 IEEE.
PY - 2020/11/8
Y1 - 2020/11/8
N2 - Internet finance products have been considered as one significant driving force in China's economy since they emerged. This paper is an attempt to explore the essence of internet installment payment, to analyze the interest rates of various internet financial products, including but not limited to credit cards, second-hand cars and new cars. It also surveys and compares the declared interest rates of several popular platforms and their 'effective annual interest rates'. The results suggest that the 'effective annual interest rates' is usually much higher than what platforms have declared. Such dedicated difference between the 'effective annual interest rates' and what the platforms declared can easily mislead customers to make a decision. The paper aims to articulate such dedicated differences so that borrowers and regulators can have more insights into the business strategy and make wiser decisions.
AB - Internet finance products have been considered as one significant driving force in China's economy since they emerged. This paper is an attempt to explore the essence of internet installment payment, to analyze the interest rates of various internet financial products, including but not limited to credit cards, second-hand cars and new cars. It also surveys and compares the declared interest rates of several popular platforms and their 'effective annual interest rates'. The results suggest that the 'effective annual interest rates' is usually much higher than what platforms have declared. Such dedicated difference between the 'effective annual interest rates' and what the platforms declared can easily mislead customers to make a decision. The paper aims to articulate such dedicated differences so that borrowers and regulators can have more insights into the business strategy and make wiser decisions.
KW - Effective Annual Interest Rates
KW - Internet Finance Products
KW - Newton's method
KW - Time Value of Money
UR - http://www.scopus.com/inward/record.url?scp=85100546887&partnerID=8YFLogxK
U2 - 10.1109/DASA51403.2020.9317208
DO - 10.1109/DASA51403.2020.9317208
M3 - Conference Proceeding
AN - SCOPUS:85100546887
T3 - 2020 International Conference on Decision Aid Sciences and Application, DASA 2020
SP - 1103
EP - 1109
BT - 2020 International Conference on Decision Aid Sciences and Application, DASA 2020
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 2020 International Conference on Decision Aid Sciences and Application, DASA 2020
Y2 - 7 November 2020 through 9 November 2020
ER -