The Research Of Financial Service Innovation In Fujian Rural Credit Cooperatives

Through studying domestic and international financial service and financialinnovation theory, this paper intends to summarize the characteristics and developmenttrend of financial service innovation, analyze the current situation of financial serviceinnovation in Fujian Rural Credit Cooperatives objectively, discover the problems andrestricting factors of rural credit cooperatives’ innovation, and put forward the solutionof improving the financial service innovation for Fujian Rural Credit Cooperativessystematically by drawing on the experience of other banks whose ability of innovationis stronger. The purpose of the thesis is enhancing rural credit cooperatives’ capacity offinancial service innovation, improving market competitiveness and providing betterservice for agriculture, farmer, rural area and scientific development of local economy.First, this thesis defines the concept of service, financial service and financialservice innovation. Second, this thesis researches the progress of domestic andinternational financial service and financial innovation theory, summarizes thecharacteristics and development trend of the financial service innovation. Third, from theessence of banking service, this thesis also absorbs the existing financial servicetheories and the theoretical results of financial innovation, makes comprehensive analysisabout the achievement and problems of financial service innovation in Fujian RuralCredit Cooperatives from the micro-level,and profoundly analyzes the factors ofhistory, policy, system, environment, staff and other aspects to discover the problems andrestricting factors of Fujian Rural Credit Cooperatives’ financial innovation. Fourth,through comparing with other banks whose innovation ability is stronger, this paper findsfive disadvantages of rural credit cooperatives, and summarizes the innovativeexperience which can be used for reference. Finally, this paper innovates principle basedon customer focus and service demand, and puts forward a series of basic ideas andsuggestions of comprehensively improving the innovation capability of Fujian RuralCredit Cooperatives:1. Financial service innovation of Fujian Rural Credit Cooperatives should adhere tothe innovation principle of customer-centric and demand-driven, base on the economic characteristics of "the mountains, the sea, and Taiwan" and the development level ofregional economy, and spread the financial products and service which is easy tounderstand and strongly operative based on local circumstances;2. Financial service innovation of Fujian Rural Credit Cooperatives includes fivekey points: the innovation of rural land security, the innovation of financial productwhich provides service for farmers’ transformation, the innovation of service modelaround the agricultural industry chain, and optimizing service channel and businessprocedure.3. Fujian Rural Credit Cooperatives should innovate service concept around countrycustomers, innovate service mode by adjusting organizational structure and optimizingservice processes, strengthen the development of basic product,make the innovationplan of derivative financial products and combination product in advance, direct businessdevelopment and promote online and offline network convergence by the lead ofinformation technology, integrate application system, and provide data applications.