Research On The Innovation Of Microfinance In Postal Savings Bank Of China, Chaoyang Branch

The Postal Savings Bank of China is a large commercial bank which isestablished based on the reform of the postal savings system. Since it was founded in2007, depending on the wide network system of postal savings system, the PostalSavings Bank of China has served the "three rural" as the major goal, constantlyimproved the service function and expanded their marketing channels to provide safeand convenient financial services for the masses. Now it has become a competitivemodern commercial bank with great capital adequacy, complete functions and orderlyoperation.The Chaoyang Branch was founded in2011. After years of development, it hasmade certain achievements on the basis of the rural financial construction. On thebasis of inheriting the traditional business of the postal savings system, it makes themicrofinance project as a foothold and achieves a156.156million yuan microfinancelending in2014. However, there are still many problems in the microfinance ofChaoyang Branch at this stage, such as less product variety, small scale and singlecustomer groups. It can’t really meet the financing needs of farmers in Chaoyangcounty and it is also unfavorable to its growth. In this article, through questionnaireand field visit, I found that the rural residents has extensive financing needs inChaoyang county and as much as77%of them have credit needs. However, due tothe limitation of crop production cycle, their funding requirement also shows thecharacteristics of periodic. Rural residents also faced the predicament of singlefinancing channel, high cost and hard loan. Through questionnaires and fieldinvestigation, this paper analyzed the cause of the above problem proposed thatChaoyang Branch need to expand the types of customers, to establish customerdocuments, to argue greater autonomy of product development from higher level oforganization, to collating with government departments, agriculture Supply-ownedenterprises, agricultural enterprises to develop customer, improve service models and service processes. It should transform the product development from the "top down"to "bottom-up", develop customers from "self-development" to"collating-development", move from the "shopkeeper" to "salesmen" operating underone-stop service other than the serial processes.Along with the efforts by government to support rural economic development,the micro-lending business will usher in an unprecedented development opportunities;With the opening of the financial sector, the micro-lending business is also facing agrowing challenge. This paper take the Chaoyang Branch as the study sample,discussed the reasons for the slow development of micro-lending business, putforward the innovative proposals of operating models, It will not only help the rapiddevelopment of the microfinance business in Chaoyang Branch, but also provide theother branches of Postal Savings Bank of China with valuable decision-makingreference.