Financial Innovations In The Sustainable Development Of County-level Inclusive Finance:

In2014, the rural work conference chaired by Communist Party of China Central Committee stressed that, agriculture should be strong if China is to be strong; countryside should be beautiful if China is to be beautiful; farmers should be rich if China is to be rich. Issues concerning agriculture, countryside and farmers have always been the main problem in China’s economic development and social harmony, and the development of rural areas cannot depart from the support of inclusive finance. However, problems such as the large amount of rural disadvantaged groups, the difficulties in development of inclusive finance, the large amount of potential rural resources and the difficulties in capitalization of the potential rural resources have restricted the development of county-level small-sized financial institutions with legal person status and rural economy for a long time. Therefore, to research the sustainable development of county-level inclusive finance, to make clear the the business focus of micro deposits, loans and payments that dominate the financial services to the rural disadvantaged groups, and to figure out how to expand the paths for the outreach and to grasp the extent of "benefits" based on the perspective of financial innovation theory, are of theoretical and practical significance.On the basis of references about inclusive finance, and through the research on the demand and supply characteristics and development status of county-level inclusive finance, this paper suggests:Firstly, the outreach of inclusive finance should be clarify key points and difficulties by different service objects and service contents. The construction of a inclusive financial system as a whole should take customer’s real demands as its core aim, design the demand oriented financial services for disadvantaged groups, and focus on the innovation of regulations, products and services to activate the financial credits and other potential resources owned by disadvantaged groups; Secondly, the "benefits" of inclusive finance does not mean preferential price simply, but should emphasize on accessibility and convenience of financial services; Thirdly, among the basic financial products related with inclusive finance such as micro-investments, micro-financing, micro-payments and micro-insurances, micro-loans which are apart of micro-financing would be one of the most important and most challenging financial products because of its widely public attention and "hematopoietic" function. In order to build the inclusive financial system, micro-loans should be the priority. Besides, through the analysis of international advanced micro-credit technology&business operation models, and case study of micro-loans’ innovation at J Bank, this paper supposes that:under the support of suitable regulations and policies, international advanced micro-credit technology can be localized and optimized in county-level small-sized financial institutions with legal person status Thus it can activate the capitalization of potential rural resources and become an important pillar of county-level small-sized financial institutions with legal person status for their sustainable development. Finally, the extension of the above research, the paper puts forward some policy suggestions to promote sustainable development for county-level inclusive finance.