Study Of Huishang Bank Expand Its Inclusive Financial Businesses In County Market

With the continuous support of the policies, the development of county economy prospers. The government has issued many policies such as relaxing the entrance condition and developing the inclusive finance which has result in the re-focusing of the leading commercial banks on the rural market as well as the emergence of new types of financial institutions such as County Bank, loan company and cooperation fund. However, the liquidity of the rural financial market is still inadequate, which hardly satisfies the demands of rural economy and mini-and-micro enterprises. This is ascribed to the situation that large commercial banks are still have doubts about the development of the rural area and that the newly developed financial institutions only have limited capabilities.As the largest municipal commercial bank in Anhui Province, Huishang Bank bears the mission of supporting the rural economy and develops the inclusive finance. Nevertheless, the accelerating of the ongoing process of interest rate liberalization and the deepening of the financial disintermediation bring big pressure to the development of commercial banks. Therefore, devoting into the blue sea of rural market is the solution that help Huishang Bank keep pace with the development.As a local bank, Huishang Bank has the advantages of reputation and support from the government. Also, the rapid growth of the economy and living standards provide a big market for the bank. However, compared to the leading state-owned commercial banks, Huishang Bank has disadvantages in terms of branch distribution, IT support, business innovation as well as the talent acquisition. The rapid expansion of Postal Savings Bank of China and the Agricultural Bank of China put big pressure on the development of Huishang Bank. It also need to think about how to achieve their goals in the circumference where financial development is far behind the urban areas. In this paper, we adopt SWOT analysis to investigate the advantages and disadvantages, opportunities and challenges of Huishang Bank when expanding in the rural market.In foreign countries, in order to develop inclusive finance, Grameen Bank of Bangladesh launched microfinance mode to provide funds to poor people to help them get rid of poverty. Wells Fargo focus on the personal service and micro-corporations. In China, the Postal Savings Bank of China set up a series of new loans for different farmers. Baoshang bank designs diversified loan products to meet the loan demand of farmers. It also sets up a comprehensive financial services network to guarantee farmers obtaining financial services. It is worthwhile for Huishang Bank to learn.Based on the typical experience of foreign and domestic inclusive financial, Huishang Bank can expand its inclusive financial businesses from the following steps: first, to strengthen the construction of branch network and electronic channels in county area; second, establish and perfect the system of financial products for county areas; third, sound incentive and constraint mechanism; fourth, improve the ability of fundamental staffs service quality; fifth, optimize internal control of the branch in county and perfect the risk control system, in order to implement a sustainable development.