Consumption credit overdue asset comprehensive solution

Abstract

The invention discloses a consumption credit overdue asset comprehensive solution which covers the aspects of business, finance and the like. In terms of business, asset table issuing is realized by relying on a fusion load group system, guarantee cost payment and management are optimized, and multiple compensation modes and continuous management strategies are provided; in the financial aspect, the tax structure is optimized, various expenses are reasonably arranged, and the product expense structure is assisted to be optimized; and during batch litigation, recycling is carried out in a decentralized jurisdiction, and the large-scale litigation service of individual default cases is provided for financial institutions. According to the scheme, the limitation of the prior art is overcome, efficient recovery and financial optimization are realized on the premise of compliance, the consumption credit overdue asset management level is improved, the industrial pain point is effectively solved, the diversified requirements of financial institutions are met, and the healthy development of the industry is promoted.

Description

Technical Field

[0001] The present invention relates to the field of consumer credit technology, and in particular to a comprehensive solution for overdue consumer credit assets. Background Art

[0002] In the field of consumer credit, ensuring that assets are compliant and high-quality is crucial for credit companies. Some existing solutions have certain limitations, and this invention aims to solve these problems.

[0003] The current solutions include: Regarding business solutions, there is a structure for off-balance sheet supervision of existing and incremental non-performing assets, leveraging a national financing and guarantee group system. This structure achieves a zero NPL ratio on-balance sheet through flexible and compliant guarantee fee payment methods and comprehensive post-off-balance sheet asset management. However, this approach may still require greater flexibility and customization to meet the diverse needs of different financial institutions. For example, some financial institutions may require more customized off-balance sheet asset models to better suit their unique business processes and risk appetite.

[0004] In terms of financial optimization: Off-balance sheet solutions for different product types can complement each other, enabling a 25% pre-tax deduction for current income tax on off-balance sheet assets through expense arrangements, and assisting financial institutions in optimizing products with interest rates between 24% and 36%. However, financial institutions face numerous challenges in VAT tax structures. For example, when funding costs are reflected as interest expenses on interbank borrowings, the borrower cannot deduct input VAT, and labor costs cannot be deducted due to the difficulty in obtaining valid deduction certificates. These issues limit the overall effectiveness of financial optimization, leaving significant room for tax burden reduction.

[0005] In terms of batch litigation: Although off-balance sheet assets are compatible with nationwide batch litigation business and public relief can be used to achieve real recovery of off-balance sheet assets, private relief has many disadvantages, such as high costs and low efficiency in handling small and high-frequency cases, and major information security risks; when handling consumer loan cases, public relief is also affected by factors such as the case filing amount and cumbersome manual operation procedures, resulting in low efficiency and difficulty in meeting the needs of financial institutions to quickly handle overdue assets.

[0006] In view of the problems existing in the existing technology in the above aspects, the present invention proposes a comprehensive solution for overdue consumer credit assets to overcome the shortcomings of the existing technology, achieve efficient recovery and financial optimization on the basis of ensuring compliance, and improve the overall level of overdue consumer credit asset management. Summary of the Invention

[0007] Business Plan Compliant and flexible asset off-balance sheet solution Relying on a national financing guarantee group system, which has strong capital and extensive cooperation with many banks and consumer finance institutions, it ensures the applicability and recognition of the program.

[0008] The business model is mature and compliant. After multiple internal and external reviews, it is compliant at both the regulatory and operational levels, providing financial institutions with a safe off-balance sheet solution.

[0009] It has a complete fee payment and asset management mechanism, simplifies the payment process, ensures the security and value-added potential of off-balance sheet assets, and financial institutions can flexibly customize service solutions according to their own needs.

[0010] Financing guarantee fee payment method Financing guarantee fees include guarantee service fees, review fees, and security deposits. Payment methods include lump-sum payment, installment payment, payment proportional to the loan balance, and a risk guarantee system. A lump-sum payment facilitates management by the guarantee institution but places pressure on the borrower's liquidity; installment payment reduces initial pressure on the borrower and allows the guarantee institution to adjust services and fees; payment proportional to the loan balance is fairer but requires the guarantee institution to have advanced risk management and accounting capabilities; and a risk guarantee system can reduce the financial institution's risk exposure and regulate borrower repayment behavior. Borrowers should consider their own personal factors when choosing a payment method, while financial institutions and guarantee institutions should consider multiple factors. All parties can negotiate and innovate to optimize payment methods.

[0011] Reasonable arrangement of various financing guarantee fees Financing guarantee fees are paid as a certain percentage of the loan amount and can be paid in installments to help financial institutions manage cash flow and monitor risks.

[0012] Marketing expenses are paid in proportion to the growth of loan scale, which encourages financial institutions to expand lending and ensures the effective use of expenses.

[0013] The risk reward program provides rewards when transaction risks are below the threshold, guiding financial institutions to focus on risk management.

[0014] A service reward program is set up for collection fees, which rewards collection agencies based on the repayment situation of entrusted cases and improves collection results.

[0015] Data / technology fees are charged on a per-use or per-transaction basis. Reasonable payment can improve risk management and service quality.

[0016] The entrusted guarantee fee is paid in installments by the borrower when repaying the loan, and the borrower's repayment ability and risk assessment must be considered when setting the fee.

[0017] Guarantee compensation implementation method The basic process of guarantee compensation includes risk warning and assessment, compensation decision-making, fund allocation, recovery and disposal.

[0018] The implementation methods include direct compensation (fast and direct but with high risk for the guarantor institution), indirect compensation (flexible process but with possible increase in cost and operational complexity) and risk sharing mechanism (risk dispersion but with high difficulty in coordination).

[0019] Mature asset management and continuous income growth strategies The key links in continuous asset management include entrusting financial institutions with payment, clearing and settlement (leveraging professional advantages to ensure the safety of capital flow), optimizing borrower repayment management (ensuring information security and automated processing), clarifying the role of financing and guarantee companies (providing guarantees without touching funds) and reasonably paying technical service fees (incentivizing institutional participation).

[0020] Strategies to increase institutional non-interest income include expanding business scope, improving service quality, strengthening risk management and promoting technological innovation.

[0021] Financial Optimization Optimize tax structure and increase pre-tax deductions for income tax Faced with the dilemma of capital costs and labor costs in VAT deduction, the coping strategies include innovating the capital operation model to transform interest expenses into a deductible item, and strengthening the management of cost deduction vouchers to ensure that labor costs are deductible.

[0022] The VAT burden on overdue interest on non-performing assets can be reduced by strengthening asset management and taking advantage of policy incentives to convert interest receivable but not collected within 90 days of overdue into costs.

[0023] Strategies to increase pre-tax deductions for income tax include increasing R&D investment, optimizing salary structure and making rational use of tax agreements.

[0024] Assist in optimizing product cost structure A mature clearing, settlement and payment system can accurately control the interest and fees of loan contracts.

[0025] Flexible fee structure adjustment strategies include cross-project collaborative optimization (adjusting fee ratios according to project conditions), risk-based fee pricing (pricing based on risk levels), and transparent and convenient fee payment (enhancing customer experience and trust).

[0026] Batch litigation Compatible with batch litigation services Private relief has problems such as high costs and information security risks; although public relief is standardized and fair, it is inefficient in handling small and high-frequency cases.

[0027] The compatible batch litigation service model overcomes its shortcomings through litigation process automation (using technology to achieve automatic processing of the entire process), batch processing mechanism (integrating cases for centralized trial), compliance assurance (compliance with laws and regulations and risk prevention and control) and enhanced privacy protection (protecting personal privacy).

[0028] Decentralized jurisdictions enable efficient recycling The advantages of outsourced debt collection agencies include large coverage, legality and compliance, and the ability to flexibly use technology to improve efficiency.

[0029] Strategies for coping with dispersed jurisdictions include establishing cross-regional collaboration mechanisms, leveraging technology for remote operations, and strengthening risk assessment and compliance reviews.

[0030] Providing large-scale litigation services to financial institutions Technology-driven automated data processing (capturing data through APIs or batch files and connecting to regulatory platforms).

[0031] Technology platform empowerment (automatically reviewing evidence and generating documents, assisting in batch trials and judgments).

[0032] Full-process and full-dimensional operation management (ensuring efficiency and compliance in all links to form a closed-loop management).

[0033] Unified standards and single-point breakthroughs for typified cases (classified management and customized strategies for handling complex cases).

[0034] Continue to optimize and scale up alternatives to private relief (establish a monitoring and evaluation mechanism to continuously improve services).

[0035] Different degrees of impact on productization to achieve optimal operational efficiency Pre-trial mediation uses the Internet to guide and educate those who lack repayment ability and prevent defaults.

[0036] Batch litigation uses data analysis to deter and punish those who have lost contact or have maliciously breached the contract.

[0037] Enforcement strengthens deterrence against relevant personnel and optimizes enforcement strategies. Applying different measures can optimize operational efficiency, reduce default risks, and enhance customer satisfaction and loyalty.

[0038] Beneficial effects of the present invention: Compliant and flexible removal of existing and incremental non-performing assets from the balance sheet Optimize the value-added tax structure and increase the income tax deduction by 25% Compatible with fully compliant large-scale batch litigation post-loan collection. BRIEF DESCRIPTION OF THE DRAWINGS

[0039] In order to more clearly illustrate the technical solutions in the present invention or the prior art, the following briefly introduces the drawings required for use in the embodiments or the description of the prior art. Obviously, the drawings described below are only for the present invention. For ordinary technicians in this field, other drawings can be obtained based on these drawings without paying any creative work.

[0040] Figure 1 A schematic diagram of batch litigation according to an embodiment of the present invention; Figure 2 This is a schematic diagram illustrating the detailed expenses of each expense in an embodiment of the present invention. DETAILED DESCRIPTION

[0041] The present invention is described in detail below with reference to the accompanying drawings and specific embodiments. It is also noted that, to provide a more detailed description, the following embodiments are best and preferred embodiments, and those skilled in the art may employ alternative methods for implementing certain known technologies. Furthermore, the accompanying drawings are intended only to provide a more detailed description of the embodiments and are not intended to limit the present invention.

[0042] It should be noted that references in the specification to "one embodiment," "an embodiment," "exemplary embodiments," "some embodiments," etc. indicate that the described embodiments may include specific features, structures, or characteristics, but not necessarily every embodiment will include such specific features, structures, or characteristics. Furthermore, when specific features, structures, or characteristics are described in conjunction with an embodiment, it is within the knowledge of persons skilled in the relevant art to implement such features, structures, or characteristics in conjunction with other embodiments (whether or not explicitly described).

[0043] In general, terms can be understood, at least in part, from their use in context. For example, depending at least in part on the context, the term "one or more" as used herein can be used to describe any feature, structure, or characteristic in the singular sense, or can be used to describe a combination of features, structures, or characteristics in the plural sense. Additionally, the term "based on" can be understood as not necessarily intended to convey an exclusive set of factors, but can instead, depending at least in part on the context, allow for the presence of other factors that are not necessarily explicitly described. Example

[0044] See Figures 1 to 2 This plan is divided into three parts: business plan, financial optimization, and batch litigation.

[0045] 1. Business Plan 1.1 Compliant and flexible off-balance sheet solutions for existing and incremental assets Solution Background and Advantages: The solution is backed by a robust national financing guarantee group. This group not only boasts strong capital (e.g., the 3 billion RMB registered capital mentioned above), but also has established long-term, stable partnerships with numerous banks and consumer finance institutions, ensuring the solution's broad applicability and market acceptance.

[0046] Business Model and Compliance: The solution's business model is mature and compliant. Through multiple internal and external compliance and regulatory reviews, the solution has demonstrated regulatory and operational compliance, providing financial institutions with a secure off-balance sheet asset solution.

[0047] Fee Payment and Asset Management: To ensure the smooth off-balance sheet asset transfer process, the solution provides a sophisticated fee payment and off-balance sheet asset management mechanism. This mechanism not only simplifies the fee payment process but also ensures the security and growth potential of off-balance sheet assets through professional asset management.

[0048] Flexibility and Customization: This solution offers advantages in flexibility and customization. Financial institutions can flexibly select the type, size, and maturity of off-balance sheet assets based on their specific circumstances and needs, while enjoying tailored service solutions to meet their specific business objectives and risk management requirements.

[0049] 1.2 Payment Methods for Financing Guarantee Fees Guarantee fees are a significant component of loan costs during the financing process. Their payment method not only impacts the borrower's funding arrangements but also influences the financial institution's risk management and operational efficiency. This section will explore in detail the payment methods for financing guarantee fees, aiming to provide clear and practical guidance for all parties involved.

[0050] 1.2.1 Basic composition of financing guarantee fees Financing guarantee fees typically include guarantee service fees, review fees, and security deposits. The guarantee service fee is the fee charged by the guarantee institution for providing guarantee services to the borrower, the review fee is used to cover the costs of the guarantee institution's credit assessment and project review of the borrower, and the security deposit is a certain amount of funds required by the guarantee institution to ensure that the borrower fulfills its repayment obligations.

[0051] 1.2.2 Payment Methods of Financing Guarantee Fees Lump-sum payment: Borrowers must pay the entire guarantee fee to the guarantor before obtaining a loan. This method is simple and straightforward, facilitating fund management and financial accounting for the guarantor, but it may place some pressure on the borrower's liquidity.

[0052] Installment Payment: Guarantee fees are paid in installments based on the loan term or project progress. This approach can alleviate borrowers' initial financial pressures and provide greater flexibility in funding arrangements. It also allows guarantee institutions to tailor service content and fees to the specific circumstances of the loan.

[0053] Payment based on the loan balance: Guarantee fees are calculated and paid proportionally based on the borrower's outstanding loan balance. This approach more accurately reflects the risk level assumed by the guarantor, making fee payments more fair and reasonable. However, it should be noted that this approach may require the guarantor to possess advanced risk management and financial accounting capabilities.

[0054] Risk Guarantee Fund System: In some cases, financial institutions and guarantors may jointly establish a risk guarantee fund system. Borrowers are required to pay a certain percentage of the risk guarantee fund into a designated account to cover potential default losses. This approach can further reduce the financial institution's risk exposure and help regulate borrowers' repayment behavior.

[0055] 1.2.3 Payment method selection and optimization When choosing a payment method for financing guarantee fees, borrowers should consider factors such as their own financial situation, loan term, and repayment plan. Financial institutions and guarantors should also focus on risk control, cost accounting, and customer experience. All parties can also optimize payment methods through negotiation and innovative product design to achieve win-win development.

[0056] 1.3 Reasonable arrangements for payment methods of various types of financing guarantee fees In the field of financing guarantees, reasonable arrangements for fee payment methods are not only related to the risk control of financial institutions, but also directly affect the borrower's capital flow and financing costs.

[0057] 1.3.1 Financing guarantee fees Financing guarantee fees are fees paid by financial institutions to ensure loan security. Payment methods should adhere to the principle of "risk-cost commensuration." Financial institutions are advised to directly pay a certain percentage of the financing guarantee fee based on the loan amount. To reduce the burden of a one-time payment, a "spread and phased payment" strategy can be adopted, with regular monthly or quarterly payments. This payment method helps financial institutions better manage cash flow while maintaining continuous risk monitoring.

[0058] 1.3.2 Marketing expenses Marketing expenses are an important means of incentivizing financial institutions to expand their loan portfolio within a specific period. When loan portfolios reach a certain amount, marketing incentives, paid as a percentage of the loan amount, can both stimulate financial institutions' enthusiasm and ensure the effective use of expenses. It is recommended that the payment of marketing expenses be linked to actual loan portfolio growth to ensure reasonableness and effectiveness of the expenses.

[0059] 1.3.3 Risk Reward Plan Risk reward programs are an effective mechanism for encouraging financial institutions to maintain a low risk profile. If the risk level of a transaction remains below a specified threshold over a specified period of time, risk rewards are awarded based on the threshold. This payment method helps guide financial institutions in focusing on risk management and reducing non-performing loan ratios. However, it is important to ensure that the reward criteria are reasonable and motivating to fully leverage the effectiveness of risk reward programs.

[0060] 1.3.4 Collection Fees Collection fees are fees paid by financial institutions when entrusting third-party agencies to collect debts. To encourage collection agencies to improve their efficiency, service reward programs can be established. Within a specific entrustment period, if the client's direct repayments or third-party repayments reach a certain threshold, the collection agency will receive a reward. This payment method helps improve collection effectiveness and reduce non-performing loan losses.

[0061] 1.3.5 Data / Technology Fees With the development of FinTech, the role of data and technology in the financing and guarantee sector is becoming increasingly prominent. Financial institutions should pay corresponding data / technology fees when using data services or models. These fees can be charged on a per-session or per-transaction basis, with specific rates negotiated based on the content and quality of the services provided. Reasonable payment of data / technology fees helps financial institutions improve their risk management capabilities and service quality.

[0062] 1.3.6 Entrusted guarantee fees In the borrower risk protection plan, the entrusted guarantee fee is a portion of the borrower's overall costs that is paid directly by the borrower. This portion of the fee is paid in installments during the repayment process. Financial institutions are advised to fully consider the borrower's repayment ability and affordability when setting the entrusted guarantee fee to ensure that the fee level is reasonable and acceptable. At the same time, they should also strengthen risk assessment and credit review of borrowers to reduce the risk of default.

[0063] 1.4 Methods of implementing guarantee compensation In financing guarantee business, guarantee substitution refers to the act of a guarantor institution repaying the debt on behalf of a borrower in accordance with the contractual agreement when the borrower fails to fulfill its repayment obligations. This process not only affects the financial security of the financial institution but also directly impacts the guarantee institution's operational risk and market reputation. This chapter will explore in detail the implementation methods of guarantee substitution, providing practical guidance and reference for relevant parties.

[0064] Guarantee compensation is a crucial component of financing guarantee services, and the method used to implement it directly determines its efficiency, cost, and risk control. A reasonable compensation method can maximize the security of financial institutions' funds while reducing the guarantee institution's compensation costs and risk exposure.

[0065] 1.4.1 Basic Process of Guarantee Compensation The basic process of guarantee compensation usually includes the following steps: Risk warning and assessment: Financial institutions can promptly identify borrowers' repayment risks through daily monitoring and regular assessments, and issue warnings to guarantee institutions.

[0066] Compensation decision: After receiving the compensation application from the financial institution, the guarantee agency decides whether to make compensation based on the contract agreement and risk assessment results.

[0067] Funds transfer: Once the decision to compensate is made, the guarantee agency must promptly transfer the compensation funds to the account designated by the financial institution to repay the borrower's debt.

[0068] Recovery and disposal: After compensation, the guarantee agency has the right to recover from the borrower and dispose of collateral such as mortgages and pledges through legal means or other means to make up for the compensation losses.

[0069] 1.4.2 How to implement guarantee compensation Direct compensation: Definition: The guarantee agency pays compensation directly to the financial institution and assumes the borrower's repayment responsibility.

[0070] Advantages: Fast and direct, it can quickly relieve the financial pressure of financial institutions and reduce the non-performing loan rate.

[0071] Disadvantages: The guarantee agency needs to bear all compensation risks, and recovery is difficult.

[0072] Indirect compensation: Definition: Compensation is completed indirectly through a third-party payment channel or other financial institutions, that is, the guarantee agency first transfers the compensation funds to the third-party payment platform or financial institution, which then repays the borrower.

[0073] Advantages: The process is flexible and can reduce the direct risk exposure of the guarantor while leveraging the risk management capabilities of third-party payment platforms or financial institutions.

[0074] Disadvantages: It may increase compensation costs and operational complexity, and the reliability and compliance of third-party payment platforms or financial institutions must be ensured.

[0075] Risk sharing mechanism: Definition: Guarantee institutions, financial institutions, and reinsurance institutions jointly establish a risk-sharing mechanism to share the compensation risk in a certain proportion.

[0076] Advantages: It can disperse risks, reduce the compensation pressure of a single institution, and improve the overall risk tolerance.

[0077] Disadvantages: It requires all parties to reach a consensus and formulate detailed sharing rules and operating procedures, which may increase the difficulty of coordination.

[0078] 1.5 Continuous management of mature assets and significant increase in institutional income In today's increasingly complex and volatile financial markets, how to effectively manage assets on an ongoing basis and, in doing so, significantly increase their intermediary income ("intermediary income") has become a key focus for many financial institutions. This chapter will explore the process of entrusting financial institutions with payment, clearing, and settlement of assets shipped, and how to achieve significant increases in intermediary income through a mature, ongoing asset management strategy.

[0079] 1.5.1 Key links in continuous asset management Entrust financial institutions to carry out payment and clearing settlement During the initial stages of ongoing asset management, financial institutions should leverage their expertise to provide convenient payment and clearing and settlement services to borrowers of the assets being shipped. Through banks or third-party payment platforms, they should ensure rapid capital transfer and accurate clearing, ensuring the authenticity and validity of transactions. Furthermore, financial institutions should establish a strict regulatory account system to monitor fund flows in real time and ensure fund security.

[0080] Optimization of borrower repayment management Borrower repayment management is a core component of ongoing asset management. Financial institutions should rely on strict industry information security systems (such as ISO 27001) to ensure the accuracy and confidentiality of borrower repayment information. Furthermore, by introducing sophisticated API interfaces or batch file processing technologies, they can automate and intelligently manage repayment processes, reducing operational costs and improving repayment efficiency. Furthermore, financial institutions should work closely with the institution designated by the financier to jointly assume responsibility for repayment management and ensure a smooth repayment process.

[0081] The role and positioning of financing guarantee companies Financing guarantee companies play a crucial role in the ongoing management of assets. They reduce credit risk for financial institutions by providing credit guarantee services. Furthermore, financing guarantee companies remain aloof from the funds, ensuring the independence and security of capital flows. Financial institutions should establish long-term, stable partnerships with financing guarantee companies, jointly develop risk prevention and control measures, and enhance overall asset management.

[0082] Reasonable payment of technical service fees To encourage financial institutions and third-party organizations to actively participate in sustainable asset management, a reasonable mechanism for paying technical service fees should be established. Financial institutions could regularly pay technical service fees to institutions that provide technical support and services, recognizing their contributions to improving asset management efficiency and reducing risk costs. This would also help attract more high-quality institutions to the asset management market and promote the healthy development of the industry as a whole.

[0083] 1.5.2 Strategies to Significantly Increase Institutional Income Expand business scope Financial institutions should continue to expand their business scope to include more types of assets and financial products. By providing diversified financial services to meet the needs of different customers, they can increase intermediary business income sources.

[0084] Improve service quality High-quality service is key to attracting customers and increasing non-recurring revenue. Financial institutions should continuously improve service quality, optimize service processes, and enhance service efficiency. By providing personalized and customized service solutions, they can enhance customer loyalty and improve customer satisfaction.

[0085] Strengthen risk management Effective risk management is a crucial prerequisite for ensuring the sound operation of financial institutions and increasing their non-interest income. Financial institutions should establish robust risk management systems and strengthen the identification, assessment, and control of various risks. By mitigating operational risks, such as credit risk and market risk, they can ensure the security and stability of asset management.

[0086] Promoting technological innovation Technological innovation is a key driver of non-revenue growth for financial institutions. Financial institutions should increase investment in FinTech to promote technological innovation and application. By introducing advanced technologies such as big data and artificial intelligence, they can enhance the intelligence of asset management, reduce operating costs, and improve profitability.

[0087] 2. Financial Optimization 2.1 Optimize the tax structure and increase the pre-tax deduction of income tax by 25% In today's complex financial environment, financial institutions face numerous tax challenges, particularly regarding optimizing their VAT structures. This article explores how strategic adjustments can not only optimize VAT structures but also significantly increase income tax deductions, with the goal of increasing them by at least 25%.

[0088] 2.1.1 Key Challenges in Optimizing the VAT Tax Structure First, we must confront two major difficulties facing financial institutions regarding their VAT base. First, when funding costs are reflected as interest expenses on interbank borrowing, while the lender enjoys tax-free income, the recipient is unable to deduct input VAT, which inadvertently increases the recipient's tax burden. Second, financial institutions face difficulties in obtaining valid deduction certificates for labor costs, making it impossible to deduct input VAT, further limiting the scope for tax optimization.

[0089] 2.1.2 Strategic Adjustments to Meet Challenges To address the above challenges, we propose the following strategic adjustment plans: Innovative funding operation models: Financial institutions can explore innovative funding operation models, such as converting interest expenses on interbank borrowing into tax deductible items by establishing dedicated funding pools or utilizing financial derivatives, thereby alleviating the tax burden on the borrower and optimizing the overall tax structure.

[0090] Strengthen the management of cost deduction certificates: To address the issue of labor costs not being deductible, financial institutions should strengthen communication with tax authorities, clarify which types of cost expenditures can obtain valid deduction certificates, and establish a sound internal management system to ensure that all eligible cost expenditures can obtain deduction certificates in a timely and accurate manner, thereby maximizing the deduction amount of value-added tax input tax.

[0091] 2.1.3 Reducing the VAT burden on overdue interest on non-performing assets To reduce the negative impact of NPAs on the tax structure of financial institutions, particularly the VAT burden on interest payments overdue for 90 days, we recommend that financial institutions take the following measures: Strengthen asset management: By implementing a comprehensive asset management plan, we will improve asset quality and operational efficiency, and reduce the generation of non-performing assets. At the same time, we will strengthen the monitoring and management of overdue loans, ensuring that effective measures are taken to collect or dispose of them within 90 days of the due date, thereby reducing the VAT burden on interest.

[0092] Leverage preferential policies: According to Document Caishui

[2016] No. 36, financial institutions can, through compliant and effective expense management, convert all uncollected interest accrued on overdue loans within 90 days of the interest payment date into costs. This policy provides a legal means for financial institutions to reduce their VAT burden. Therefore, financial institutions should fully utilize this preferential policy and rationally plan their expense management to reduce their tax burden.

[0093] 2.1.4 Strategies for increasing pre-tax deductions for income tax To achieve a significant increase in income tax deductions (at least a 25% increase), financial institutions may consider the following strategies: Increase R&D investment: Increase investment in the R&D of new technologies and new products, and make full use of tax preferential policies such as additional deductions for R&D expenses to increase the pre-tax deduction amount for income tax.

[0094] Optimize compensation structures: By optimizing compensation structures, such as increasing long-term incentives like equity incentives, we can reduce cash compensation expenses and thus lower taxable income. At the same time, we should ensure that compensation expenses comply with regulations to fully benefit from preferential pre-tax deduction policies.

[0095] Proper use of tax treaties: For multinational financial institutions, leveraging the preferential provisions of tax treaties is an effective way to increase pre-tax income tax deductions. Careful planning of cross-border transactions and capital flows can minimize the occurrence of double taxation.

[0096] 2.2 Assist in optimizing product cost structure In today's fiercely competitive financial markets, the rationality of product fee structures directly impacts a financial institution's competitiveness, customer satisfaction, and profit margins. An efficient and flexible fee structure not only attracts more high-quality clients but also improves the institution's own operational efficiency and market adaptability. This chapter explores how to optimize product fee structures through supporting measures, specifically in the areas of controlling interest and fees in loan contracts and flexibly adjusting fees across different projects.

[0097] 2.2.1 The role of clearing, settlement and payment systems in optimizing fee structures A mature clearing, settlement, and payment system enables financial institutions to precisely control loan contract consent fees below 24% based on the payee fee structure. This goal is achieved through a highly automated and intelligent processing system that can complete complex fee calculation, allocation, and settlement tasks in a remarkably short timeframe, significantly reducing the risk of human intervention and improving the accuracy and efficiency of fee control.

[0098] 2.2.2 Flexible Adjustment Strategy of Fee Structure 1. Cross-project collaboration and cost structure optimization Fee structures can be flexibly adjusted across projects, allowing for collaboration within a single financing and guarantee company or across different financing and guarantee companies. This strategy allows financial institutions to flexibly adjust fee allocations based on project specifics and market dynamics, ensuring optimal cost-benefit ratios for each project. Furthermore, cross-project collaboration enhances the flexibility of capital utilization and strengthens financial institutions' ability to navigate market fluctuations.

[0099] 2. Risk-based fee pricing The risk protection plan is a key component of the process diagram, emphasizing that financial institutions should fully consider risk factors in their fee pricing. By establishing a scientific risk assessment model, financial institutions can accurately categorize the risk levels of different borrowers and projects and formulate differentiated fee pricing strategies accordingly. This helps financial institutions effectively control risk exposure while meeting the needs of clients with varying risk tolerances.

[0100] 3. Transparency and convenience of fee payment Customer repayments are a crucial component of fee payments. Financial institutions should strive to make fee payments transparent and convenient, enhancing the customer payment experience by optimizing payment processes, improving payment efficiency, and reducing payment costs. Furthermore, they should strengthen communication and engagement with customers, promptly addressing their questions and concerns regarding fee payments, and building customer trust and loyalty.

[0101] III. Batch Litigation 3.1 Compatible with batch litigation services, solving industry pain points in a compliant manner 3.1.1 Limitations and Challenges of Private Relief While private remedies are a traditional way to resolve debt disputes, they are often convenient but often come with a series of significant challenges. Personal consumer loan cases generally involve relatively small amounts, and using traditional methods to adjudicate each case individually would be costly, inefficient, and difficult to optimize resource allocation. Furthermore, traditional private remedies pose significant information security risks, with a high risk of personal information leakage, potentially triggering criminal offenses and severely infringing on personal privacy rights.

[0102] 3.1.2 Advantages and disadvantages of public relief Compared to private remedies, public remedies offer a more standardized and fair path to resolving debt disputes. However, public remedies also face the challenge of low efficiency when handling small, high-frequency cases, such as consumer loans. Furthermore, existing litigation practices largely rely on manual processes, resulting in cumbersome and time-consuming procedures that fail to meet the high efficiency standards required by financial institutions. Nevertheless, public remedies offer irreplaceable advantages in protecting personal privacy and ensuring information security.

[0103] 3.1.3 Compatible with batch services: the solution In order to overcome the shortcomings of both private and public relief, this model aims to automate and intelligentize the litigation process through technological means, improve case handling efficiency, and ensure the compliance and fairness of litigation activities.

[0104] 1. Automation of litigation processes Leveraging advanced technologies like big data and artificial intelligence, we automate the litigation process. From case acceptance, evidence collection, document preparation, to judgment execution, the entire litigation process can be automated through intelligent systems, significantly shortening case processing cycles and reducing labor costs.

[0105] 2. Batch processing mechanism A batch processing mechanism has been established for small-value, high-frequency cases such as consumer loans. By consolidating similar cases, centralized trials and batch judgments can be achieved, effectively improving work efficiency and case handling capabilities.

[0106] 3. Compliance assurance While pursuing efficiency, we must strictly adhere to regulations to ensure the compliance of litigation activities. We must establish a sound risk prevention and control system, strengthen identity verification, rights management, and data protection measures for litigation participants, and prevent information leakage and abuse.

[0107] 4. Enhanced privacy protection Strengthen the protection of personal privacy and prohibit any form of public disclosure of borrowers' private information. Use technical means to achieve information desensitization and encrypted storage to ensure the security and privacy of personal information.

[0108] 3.2 While ensuring compliance, decentralize jurisdiction and achieve efficient recycling In today's convergence of finance and services, how to achieve efficient debt recovery through effective strategies while ensuring regulatory compliance has become a major challenge facing both financial institutions and service providers. This chapter will focus on the advantages and practices of outsourced debt collection agencies, exploring how to leverage technology and professional services to achieve efficient and compliant debt recovery in a decentralized jurisdiction.

[0109] 3.2.1 Analysis of the advantages of outsourcing debt collection agencies 1. Large coverage, no geographical restrictions Outsourced debt collection agencies, with their nationwide service networks, can quickly reach all regions, breaking down geographical restrictions and achieving comprehensive debt recovery coverage. This large-scale operation model not only improves debt recovery efficiency but also reduces the cost of handling individual cases.

[0110] 2. Compliance processing is complex Compliance is always a primary consideration in the debt recovery process. Outsourced debt collection agencies effectively mitigate legal risks by strictly adhering to relevant regulations and employing legal and compliant methods to recover debts.

[0111] 3. Technology improves efficiency Outsourced debt collection agencies leverage modern technologies, such as big data analysis and artificial intelligence, to conduct in-depth research and analysis of debt information, pinpointing debtors' asset status and willingness to repay, and thereby developing more effective collection strategies. The application of these technologies not only improves collection efficiency but also reduces labor costs.

[0112] 3.2.2 Strategies for decentralized jurisdictions 1. Establish a cross-regional collaboration mechanism Faced with dispersed jurisdictions, outsourced debt collection agencies need to establish close collaboration mechanisms with local law firms and other relevant institutions. Through information sharing and resource integration, they can form a joint force to jointly address the challenges of cross-regional debt collection.

[0113] 2. Use technology to achieve remote operation With the development of technology, remote work and online services have become possible. Outsourced debt collection agencies can use these technologies to implement remote debt collection and online mediation, thereby breaking geographical restrictions and improving service efficiency.

[0114] 3. Strengthen risk assessment and compliance review In a decentralized jurisdiction, the risks faced during debt collection are more complex and dynamic. Therefore, outsourced collection agencies need to strengthen risk assessment and compliance reviews, conducting a comprehensive evaluation of the debtor's creditworthiness and repayment ability to ensure the legality and effectiveness of collection activities.

[0115] 3.2.3 Practical Examples of Efficient Recycling For example, an outsourced debt collection agency leverages national resources, big data, and artificial intelligence to accurately analyze debt information and develop customized collection plans. They also establish close collaborations with local courts and law firms. By combining judicial intervention with professional services, they have successfully resolved numerous cross-regional debt collection challenges. This agency's practice demonstrates that, while ensuring compliance, efficient and compliant debt collection can be achieved through a decentralized approach that combines technology with professional services.

[0116] 3.3 Providing efficient and compliant large-scale judicial litigation services for financial institutions in individual default cases In today's financial sector, the number of individual default cases is increasing daily. How to efficiently handle these cases, while protecting the rights and interests of financial institutions and ensuring compliance throughout the process, has become a pressing challenge for the industry. This chapter will focus on how to achieve scalable handling of individual default cases for financial institutions by building an efficient judicial litigation service system.

[0117] 3.3.1 Technology-driven automated data processing To improve case handling efficiency, we first leveraged technology to automate data processing. Financial institutions automatically captured data related to default cases through APIs or batch files. This step significantly reduced manual intervention and improved the accuracy and timeliness of data collection. This data was then seamlessly integrated into the judicial technology platform, laying a solid foundation for subsequent processes.

[0118] 3.3.2 The enabling role of the judicial technology platform As the core of the entire service system, the judicial technology platform undertakes the crucial tasks of automating evidence review and the generation of judicial documents. This innovative initiative not only shortens case preparation time but also significantly improves the accuracy and standardization of documents. Furthermore, by assisting courts in conducting batch trials and adjudications, the platform further accelerates the litigation process and reduces judicial costs.

[0119] 3.3.3 Full-process and full-dimensional operation management We emphasize comprehensive, full-process operational management to ensure that every step meets the standards of efficient institutions and compliant legal proceedings. Deep business integration ensures that every step of the financial institution's operations is fully connected and automated, creating a closed-loop document management and printing process. This case filing management model facilitates systematic communication on judicial standards, comprehensive judicial operational support, and, through network effects, reduces operational risks and improves overall operational efficiency.

[0120] 3.3.4 Unified Standards and Single-Point Breakthroughs for Typical Cases In response to the diverse nature of individual default cases, we implement a standardized handling model for categorized cases. By categorizing cases and establishing unified handling standards and processes, we achieve standardized and scalable case handling. At the same time, we also focus on breakthroughs in specific areas, employing customized strategies for specific or complex cases to ensure targeted and effective case handling.

[0121] 3.3.5 Continuous Optimization and Scaled Replacement of Private Relief We understand that efficient and compliant judicial litigation services are not achieved overnight and require continuous optimization and improvement. Therefore, we have established a comprehensive monitoring and evaluation mechanism to continuously optimize information transmission efficiency, automated operational processes, and other aspects. By continuously improving service quality and efficiency, we aim to achieve a large-scale alternative to private remedies and provide financial institutions with more comprehensive, efficient, and compliant judicial litigation services.

[0122] 3.4 Productization of different degrees of judicial influence and differentiated application to achieve optimal operational efficiency In today's complex and volatile financial environment, effectively managing credit risk and improving operational efficiency have become critical challenges for financial institutions. This chapter will explore the concept of "productizing varying degrees of judicial impact" and how to optimize operational efficiency through the differentiated application of judicial measures. By analyzing the pyramid structure diagram in the figure, we will gain a deeper understanding of the specific implementation path of this strategy.

[0123] 3.4.1 Pre-litigation mediation: gentle guidance and prevention first At the top of the pyramid, or the first level, we see the importance of pre-litigation mediation. This level emphasizes using reasonable mediation solutions to address real external risks, guiding, influencing, and educating those with limited repayment capacity. Internet-based product operations are used to improve mediation efficiency and provide borrowers with a positive post-loan service experience. The judicial impact at this stage is relatively mild, aiming to resolve disputes through non-litigation means and prevent defaults.

[0124] 3.4.2 Mass Litigation: Targeted Strike, Deterrence and Punishment As the pyramid progresses, the second level shifts to "mass litigation." At this level, financial institutions leverage customer behavior data analysis to develop comprehensive mass litigation programs targeting borrowers who have lost contact or maliciously defaulted. Through refined process management, this achieves both deterrence and disciplinary action. The judicial impact at this stage is more direct and intense, aiming to effectively deter those who seek petty gains and maintain financial order through legal means.

[0125] 3.4.3 Enforcement: Judicial deterrence to protect rights and interests At the bottom of the pyramid, or the third level, lies the "enforcement" stage. This stage targets individuals who maliciously default or refuse to fulfill their repayment obligations. Financial institutions enforce enforcement against these borrowers through a combination of continuously strengthened judicial deterrence and a rational combination of incentives and disincentives. Furthermore, they leverage customer feedback data to continuously optimize enforcement strategies and ensure the precision and effectiveness of judicial sanctions. This stage imposes the most severe judicial impact, aiming to protect the legitimate rights and interests of financial institutions and maintain financial market stability.

[0126] 3.4.4 Differential application to achieve optimal operational efficiency The pyramid structure in the image clearly illustrates how different degrees of judicial influence have been cleverly productized and applied to different default scenarios. This differentiated application strategy not only improves the efficient utilization of judicial resources but also optimizes operational efficiency. Financial institutions can flexibly select appropriate judicial measures based on the specific circumstances of borrowers, effectively reducing default risk while increasing customer satisfaction and loyalty.

[0127] The present invention encompasses any alternatives, modifications, equivalents, and solutions that fall within the spirit and scope of the present invention. To provide a thorough understanding of the present invention, specific details are described in detail below in connection with the preferred embodiments of the present invention, but those skilled in the art will be able to fully understand the present invention without these detailed descriptions. Furthermore, to avoid unnecessary confusion regarding the essence of the present invention, well-known methods, processes, procedures, components, and circuits have not been described in detail.

[0128] The above is only a preferred embodiment of the present invention. It should be pointed out that for ordinary technicians in this technical field, several improvements and modifications can be made without departing from the principles of the present invention. These improvements and modifications should also be regarded as within the scope of protection of the present invention.

Claims

1. A comprehensive solution for overdue consumer credit assets, characterized by: It includes business plans, financial optimization plans and batch processing plans. The business plans include asset off-balance sheet, financing guarantee fee payment, guarantee compensation and continuous asset management. The financial optimization plans include optimizing the tax structure and assisting in optimizing the product fee structure. The batch processing plans include compatible batch processing services, decentralized processing areas to achieve efficient recovery, large-scale processing services for individual default cases, and productization of processing results to varying degrees to achieve optimal operational efficiency.

2. According to the comprehensive solution for overdue consumer credit assets in claim 1, the off-balance sheet asset management business plan is characterized by relying on the national financing guarantee group system, allowing financial institutions to flexibly select the type, scale, and term of off-balance sheet assets based on their actual circumstances and enjoy customized service solutions.

3. According to the comprehensive solution for overdue consumer credit assets described in claim 1, the characteristics of the payment of financing guarantee fees in its business plan are that the financing guarantee fees include guarantee service fees, review fees, and deposits, and the payment methods include one-time payment, installment payment, payment based on the proportion of the loan balance, and a risk guarantee fund system. When selecting the payment method, all parties need to comprehensively consider various factors and can negotiate for optimization.

4. According to the comprehensive solution for overdue consumer credit assets as described in claim 1, the guarantee compensation in its business plan is characterized by a basic process including risk warning and assessment, compensation decision-making, fund allocation, recovery and disposal, and implementation methods including direct compensation, indirect compensation and risk sharing mechanism.

5. According to the comprehensive solution for overdue consumer credit assets as described in claim 1, the continuous asset management in its business plan is characterized by entrusting financial institutions to carry out payment and clearing settlement, optimizing borrower repayment management, clarifying the role of financing and guarantee companies, and reasonably paying technical service fees. At the same time, the growth of institutional income is achieved by expanding business scope, improving service quality, strengthening risk management and promoting technological innovation.

6. According to the comprehensive solution for overdue consumer credit assets described in claim 1, the tax structure optimization in its financial optimization plan is characterized by: optimizing the value-added tax structure through innovative capital operation models and strengthening the management of cost deduction certificates; reducing the value-added tax burden of overdue interest on non-performing assets through strengthening asset management and utilizing policy preferential measures; and increasing pre-tax income tax deductions through increased R&D investment, optimized salary structure and reasonable use of tax agreements.

7. According to claim 1, a comprehensive solution for overdue consumer credit assets, the financial optimization solution that assists in optimizing the product fee structure is characterized by utilizing a mature clearing, settlement, and payment system to accurately control the interest and fees of loan contracts, adopting cross-project collaboration and fee structure optimization, risk-based fee pricing, and fee payment transparency and convenience strategies.

8. According to claim 1, a comprehensive solution for overdue consumer credit assets, wherein the batch processing solution is compatible with batch processing services, is characterized by strengthening the processing of related matters through process automation, batch processing mechanism, compliance assurance and privacy protection.

9. According to claim 1, a comprehensive solution for overdue consumer credit assets, wherein the batch processing solution achieves efficient recovery in decentralized processing areas, is characterized by establishing a cross-regional collaboration mechanism, utilizing technical means to achieve remote operation, and strengthening risk assessment and compliance review to address the situation in decentralized processing areas.

10. According to claim 1, a comprehensive solution for overdue assets of consumer credit, wherein the batch processing solution provides financial institutions with efficient and compliant large-scale processing services for individual default cases, is characterized by including technology-driven data automation processing, the role of a processing technology platform, full-process and full-dimensional operation management, unified standards for typified cases and single-point breakthroughs; the batch processing solution is characterized by achieving optimal operational efficiency through productization of processing results to varying degrees, including three levels of early coordination, batch processing, and subsequent execution, and by achieving optimal operational efficiency through the differentiated application of different processing methods.

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