The Research On The Business Model Of Development Of P2P In Rural Banks

China’s finance showed the obvious gap between rural and urban areas meanwhile the economy emerged the phenomenon of urban and rural dualistic, the rural financial development is still in its original state, and even some rural or remote areas is still in the financial gap, but the rural have strong capital demand, and solved by non-standard lending all the time. So rural banks emerged as the times require. The mission of rural banks is providing loans to those private funding needs who in need of funds and can’t get through the normal way. But the development of rural banks is facing many obstacles and that the problem of sustainable development is more serious. While P2 P business can solve the problem of funding sources, but P2 P business risk is high, this article analysis the advantages and disadvantages of the rural banks and P2 P business, then from the view of both the combination of points find a combination of business model.Through the analysis of this article,the deficiencies, such as small in scale and insufficient funding sources, of rural banks lead to the banks’ profitability continues to decline and some of those banks deviated from the market positioning that service the “three dimensional rural issues”. Nevertheless, the advantages of P2 P business just can make up for these deficiencies, because P2 P business has broad funding channels that raising the social idle funds through the platform for capital demanders. In addition, the P2 P business takes advantage of the Internet to solve the borrowing problem in a lower cost. In the same way, the rural banks can reduce the P2 P business risks by its credit and rich traditional banking risk control experience, moreover, P2 P business online and offline will get a perfect combination for rural banks can do offline survey. In order to minimize the risk of the combination between rural banks and P2 P business, the borrower of this article’s business model be limited at the recommendation of rural banks who have been surveyed and confirmed., which different from the current P2 P platform that facing the whole society borrowers with uncontrolled credit.At last, this paper come to the conclusion that the combination of rural banks and P2 P business is necessary and significance, which performance in regulating private lending, helping the rural financial reform and improving the rural banks. Besides, this article states the problems of the combination. After this, the article set two business models of their combination, including operation mechanism, risk mechanism and incentive mechanism. Firstly, operation mechanism is divided into two main types of commercial operation mode of cooperation and alliance. Secondly, risk mechanism and incentive mechanism mainly from three aspects that including platform and participants and external factor to illustrate. Lastly, this article gives some policy suggestions for the perfect combination of rural banks and P2 P business.