Research On The Cooperative Development Mode Of Fintech For A Rural Commercial Bank

The integration of digital technologies such as big data,cloud computing and artificial intelligence with financial services has greatly promoted the process of digital transformation of commercial banks.How different banks choose a suitable mode matching their own endowments to develop Fintech is an important issue for both researchers and practitioners.As an important part of Chinese banking industry,most rural commercial banks develop their Fintech by cooperating with third-party organizations or technology companies.Focusing on the cooperative development mode,the research on the selection of cooperation parties,the determination of cooperation forms and the evaluation of cooperation effects is not only helpful to theoretically uncover the deep reasons why regional banks choose the cooperative development mode,but also can provide important decision-making reference for other rural banks to realize digital transformation.Based on the introduction of research background and literature review,the thesis takes A rural commercial bank as a typical case to theoretically analyze the fundamental reasons why A rural commercial bank chooses the cooperative development mode to develop its Fintech,and then demonstrates three core elements of the cooperative development mode,i.e.cooperation scene,cooperation parties and cooperation form.In view of the cooperative development mode,the thesis takes the retail product,‘D personal credit loan’ offered by A rural commercial bank,as an example,to illustrate the core elements and characteristics of the cooperative development mode,and then the cooperation outcomes are analyzed and the potential cooperation risks are pointed out.Finally,this thesis puts forward insightful suggestions for rural commercial banks to develop Fintech.The conclusion shows that small scale,weak technical foundation and being lack of scientific and technological talents are the reasons why A rural commercial bank chooses the cooperative mode to develop Fintech,and the mode includes three key elements,namely clear cooperation scenes,scientific selection of cooperation parties and matching cooperation forms.As far as the analysis on the ‘D personal credit loan’which is a retail credit product stylized by the tripartite cooperation,the results show that the loan facilitation institution is responsible for customer recommendation to A rural commercial bank,the technology company is responsible for software system construction and providing strategy reference for risk control,and A rural commercial bank itself is responsible for independent credit granting and implementing risk control strategy.For the cooperation outcomes of ‘D personal credit loan’,not only the abilities of customer acquisition and risk control of A rural commercial bank are strengthened,but also the business processing efficiency of A rural commercial bank is significantly improved,and digital transformation experience is continuously accumulated.In future,A rural commercial bank still needs to guard against potential cooperation risks,particularly paying attention to the effect of moral hazard arising from the agency behaviors of the loan facilitation institution or the technology company on the implementation of independent risk control for A rural commercial bank.