Financial Innovation Of Microfinance In The Context Of Digital Inclusive Finance

In simple terms,Inclusive finance is to make finance both universal and affordable.People can enjoy effective financial services without paying too much to obtain them.Microfinance as an important part of inclusive finance,after more than ten years of development,microfinance has indeed provided financial support for some low-income groups,but its development has been hindered.The main problems it encountered were: high lending costs and risks,low availability of financial services,and poor sustainability of financial institutions' own operations.In recent years,with the development of digital technology,inclusive finance has encountered an unprecedented historical opportunity,namely digital inclusive finance.The purpose of digital inclusive finance is to use the rapidly developing digital technology to promote the development of inclusive finance,which will solve the bottleneck of traditional inclusive finance to a certain extent.This article takes digital inclusive finance as the background,and uses MY Bank's microfinance products as research objects to analyze its financial innovation in microfinance.First of all,the status quo of the development of microfinance in China is analyzed,and the main results and bottlenecks of development are summarized.Secondly,it introduces the characteristics of microfinance products of MY Bank and its current operating conditions.Then based on the financial innovation theory,it analyzes its innovation in product model,cost and risk control.The combined quantitative and qualitative method was used to analyze the effect brought about by this innovation.The quantitative sustainability was used to test its future sustainability.Based on this,the corresponding experience was put forward.Finally,through analysis,it was found that the risk sharing model of MY Bank's“microfinance + insurance + leading enterprises + e-commerce” has reduced the risk pressure it faces.The use of a large number of data models such as drip irrigation models and credit score card models has strengthened credit risk identification and post-lending control.The “IOE” IT system and intelligent service system have greatly reduced their operating costs.Finally,the addition of digital technology has opened up various transaction chains,broadened the scope of financial services,and broke the "island of information".MY Bank's digital innovation allows it to take into account both financial performance and social performance,and achieves its own sustainabledevelopment,which has great reference significance for the follow-up financial institutions to practice digital inclusive finance.