Research On The Innovation Of Luoyang Bank's Small And Micro Credit Model Under Internet Finance

City commercial banks,developed from the urban credit cooperatives which were established in the 1980 s,has been an important part and special group in China's banking industry.At its inception,the business target is to provide financial services for minor enterprises and help boost local economy's development.Bank of Luoyang Corporation,formerly known as Luoyang City Commercial Bank,was established in 1997.In March 2009 it was renamed as Bank of Luoyang successfully with the authorization of China Bank Inspection Committee.By the end of 2018,Bank of Luoyang has 10 branches and 160 affiliated agencies in total across the country.In addition,it initiated the establishment of three village banks and one financial leasing company affiliated to Bank of Luoyang.In implementing the concept of financial Inclusion,the Bank of Luoyang continues to strengthen innovation,expand business channels,enhance service level,and fulfill business species.To carry out the monetary policy for small and micro enterprises,we always regard “serve local economy,serve small and medium-sized enterprises,serve urban residents” as main market positioning.Besides,we are endeavoring to bring the best services and products to SMEs by continuously enriching the range of products,increasing approval efficiency,reducing their financing costs,and strengthening innovation of services from products,approval and cost.This paper firstly introduces the definition of city commercial banks,small and micro enterprises,internet finance,and summarizes the existing micro-finance models of traditional commercial banks.With the rapid development of Internet,city commercial banks face the challenges from both large and medium commercial banks and also internet finance.Secondly,in support of financial theory and commercial bank management knowledge,this paper finds that the SMEs' credit service of Luoyang Bank has insufficient in terms of business model,product system,loan cost,and loan process,by analyzing the status of Luoyang Bank's SMEs' credit business.Thirdly,using SWOT analysis method to analyze the advantages,disadvantages,opportunities and threats between internet finance and Bank of Luoyang's credit business,then combined with the innovation of traditional micro-credit model of commercial banks,the paper proposes that to achieve success in SMEs' credit business under the blustery online financial market,Bank of Luoyang must make innovations based on current business model.The paper regards that it can focus on “the credit factory” model and combine with “1+N” model,as well as cooperate with government & internet banking platform.In addition,it also should give solutions and procedures advice to problems occurred in the model innovation of SMEs' credit business,meanwhile,put forward the relative precaution measures.