The Study On The Transformation And Innovation Of Microfinance Of Commercial Banks

A large number of small and micro businesses, plays an important role innational economy. However, the financing problem has been one of mainproblems which restrict the development of small and micro businesses.Commercial Banks as the main providers of social capital, have not grantedenough loans to small and micro customers. At present, domestic commercialbank has been still in a small proportion of microfinance.Look from current policy and financial trend, banks can not give up therealm of microfinance. The future revenue of banks will come from the channelssinking in the increasingly fierce competition. Transformation to the small andmicro businesses, has become the consensus of banks. At present, the small andmedium banks have successively developed in micro financial field, and the fourstate-owned banks do the same business in a certain degree. But the problemwhich can not be ignored is the high risk and cost in the field. The traditionalpattern of loans has been unable to meet on the market demand. Therefore, it isimportant to improve the professional proficiency of microfinance. Banks shouldsolve the problem and exploit products on micro financial pattern, so as torealize the transformation in the micro financial field.This article put forward the innovative pattern of banks on the microfinancial business, by analyzing the reasons of deficiency of existing business ofbanks. Through "planning first, and wholesale", and around “circle and chain”,banks could expand micro financial business. Banks would improve fourmodules, which is “the market segmentation and customer orientation”,“financial product design”,“marketing and sales strategy”,“process andtechnology improvement" to promote the position and process in micro business,and then realize the transformation. Banks should guide the micro financialservices from pure credit financing to a comprehensive financial service, so as tocontrol the business risk and improve the revenue.Finally, the article points out that to enhance the overall coverage of smalland micro businesses, can not just rely on banks, but need a common effort fromrelevant government departments, commercial Banks, small and microbusinesses. The article also raises some proposals to achieve the transformationand innovation.