Rural Credit Cooperatives In The Process Of Urban And Rural Financial Services Innovation Research

Since 2003 the city of Chengdu implements the strategy of balancing urban and rural development, promotes coordinated development and integration between rural and urban districts, the economy and society in the city of Chengdu has been developing quickly. On June 7, 2007, the State Council approved the establishment of new experimental zone for urban-rural comprehensive reform in Chengdu. A document issued by the National Development and Reform Commission (NDRC) urged the city of Chengdu to push forward comprehensive reforms in order to achieve coordinated and balanced development between urban and rural areas. For the city of Chengdu becoming the new experimental zones for urban-rural comprehensive reform, the Pixian County will reform quickly in all sectors to balance rural and urban development and promote urban-rural integration.Recently, China carries out a series of reforms in rural financial system in order to encourage both domestic and abroad capital to set up financial enterprise in rural areas by adjusting rural financial policies. So, the competition in financial market in the Pixian County will be increasingly fierce. Although the Pixian Rural Credit Union (PRCU) develops well during the past years, it cannot satisfy adequately customers'financial demands for lacking enough financial service innovation, and it does not form competition superiority in the rural financial market in the Pixian County.This paper summarizes the service innovation theory and introduces the Four-dimensional Model of Service Innovation. Then the paper analyzes the four dimensions of financial innovation according to the Four-dimensional Model of Service Innovation and the policies applied by the city of Chengdu to coordinate rural and urban development. Furthermore, this paper analyzes the financial demands of the governments, the farmers, the rural cooperative organizations and the small and medium-sized enterprises in the Pixian County. Then the paper point out that the campaign of balancing rural and urban development in the Pixian County brings the favorable opportunity to the Pixian Rural Credit Union. The paper analyzes the financial market environment in the Pixian County and the actualities of the Pixian Rural Credit Union and point out the existing problem of the Pixian Rural Credit Union. Thus, the Pixian Rural Credit Union has to improve the quality of financial service and has to enhance the ability of competition by financial service innovation to promote its development. Finally, the paper discusses the measures of financial service innovation for the Pixian Rural Credit Union.The Pixian Rural Credit Union needs to establish new financial service notion which is customer-centered and market-oriented by innovation in financial service notion. Under the guidance of the new notion, the Pixian Rural Credit Union needs to analyze the existing and potential financial demand and supply of financial market in the Pixain County, comprehend the characteristic of existing and potential customer, strengthen the management and control on the inner organizational structure which can be adjusted as needed and hold the technology related to financial service to implement innovation of financial service concept, innovation of financial service customer's interface, innovation of financial service transfer system and innovation of financial service technology.