Studies On The Rural Inclusive Financial Loan Technology Reengineering In Our Country

Inclusive finance is based on the provision of financial services to all sectors of society and groups effectively and comprehensively, especially those who have been neglected by traditional finance, such as poverty groups and people lived in rural areas. However, the traditional credit mode has difficulties to resolve the problems of information asymmetry, high transaction costs and lack of collateral, which is determined by the characteristics of microfinance clients. These three problems result in a large number of vulnerable groups being excluded from the formal financial market. How to provide stable financial services for the production and business activities of this part of low-income vulnerable groups, in the meantime, how to control credit risk within an acceptable range, are challenges facing by all levels of government and financial institutions. Inclusive financial loan technology reengineering is an effective way to solve the problem; it can solve the bottleneck problem of the financing difficulties for farmers, while achieving the coordinated development of financial performance and social performance in rural financial institutions. And therefore promote the sustainable development of rural inclusive finance.This paper starting from the basic theory firstly introduced inclusive finance development theory, information asymmetry theory, technology innovation and financial innovation theory, and process reengineering theory. Secondly analyzed the problems that when the present traditional lending techniques applied in microfinance issues, and based on these problems, we come to a conclusion that the overall goal of inclusive financial loan technology reengineering in our country is to reduce business costs and loan risks, and pursue financial sustainable development. Thirdly, based on the summary of experience in Bangladesh implementation of inclusive financial loan technology reengineering, it pointed out that social environment in Bangladesh is quite different from our country, such as the extremely poor people's life in Bangladesh, special private ownership of land, people with strong religious beliefs and high yields in microfinance funds. Therefore our country faced a series of difficulties when learning from their experience in related lending technology. Then, it points out that identifying and selecting customer to grant a loan is the premise of implementation for inclusive financial loan technology reengineering, and studies the main factors considered by rural financial institutions when identifying and selecting the customers whom are to be granted a loan by using Logit model, arguing that credit clerk should take the initiative to identify potential loan customers. Fourthly it proposed that design ideas for implementation of inclusive financial loan technology reengineering in our country are the followings, choose the mode of group guarantees lending and personal lending reasonably, promote the electronic financial services construction in rural areas, accelerate loan business process reengineering, establish peer-monitoring mechanism, dynamic incentives mechanism and installment reimbursement mechanism, effectively improve loan repayment rate. Finally it discussed the guarantee measures and suggestions to promote the realization of inclusive financial loan technology reengineering in our country.