Study On The Strategy Of Micro Credit Business Development Of Postal Savings Bank Of Zibo Branch

In recent years, on one hand, with the rapid development of China’s ruraleconomy, rural areas and farmers′demand of credit funds increased; On the otherhand, the party and the state at the policy level had clearly and repeatedly emphasizedthat "we should vigorously develop the rural financial institutions, to encourage thereturn of funds of the rural financial institutions especially postal savings banks andother financial institutions in rural areas, what comes from the rural areas, shouldabsolutely benefit the rural areas". In this situation, the postal savings bank branch inZibo City seeks to boost the micro credit business, and enlarge their scale of business.As such, we have seen mounting products, better asset quality and increasing yields inthe branch. Yet it still faces challenges both interiorly, such as institutionaldeficiencies, product and personnel quality, and exteriorly such as increasinglyintense market competition, stringent regulation so on and so forth. In view of this,what we need to do urgently is to make full use of its own advantages and favorableopportunities, to achieve a fast, healthy, and sustainable development on micro creditbusiness.In this context, this paper took micro credit business in China Postal SavingBank of Zibo Branch as the research object in order to promote healthy developmentof micro credit business in China Postal Saving Bank of Zibo Branch. This papermade in-depth study on the development strategies of the micro credit business inChina Postal Saving Bank of Zibo Branch. First, with the help of PEST analysis andPorter’s five forces model, made in-depth analysis of the external environment andcompetitive environment in the industry faced by the development of the micro creditbusiness in China Postal Saving Bank of Zibo Branch.Then,elaborated thedevelopment status of the micro credit business in China Postal Saving Bank of ZiboBranch, through the SWOT analysis method, made analysis of the internal strengths,weaknesses, external opportunities and threats faced by the development of the micro credit business in China Postal Saving Bank of Zibo Branch. Finally, proposedstrategies for how to promote the sustained and sound development of the microcredit business in China Postal Saving Bank of Zibo Branch.This paper study showed that its main advantages were in the capital andcustomer sources, networks and so on. Relatively, its disadvantages existed in thesystem, products and personnel quality etc. Facing the favorable policy and marketopportunities, credit deterioration of the environment, the aggravation of the marketcompetition, increasingly stringent regulation were still the threats of its futuredevelopment. Future development of China Postal Savings Bank of Zibo Branchshould adopt market expansion, product and operation model innovation, constructionof a professional team, microfinance customer classification and professionalmanagement and the whole process risk management strategies. At the same time,should also continue to improve the understanding of the importance in thedevelopment of the micro credit business; continuously change managementmechanism, improve the micro credit system construction; continue to strengtheninfrastructure construction, strengthen the support software; continuous integration ofresources, give priority to the development of the micro credit business; constantlyimprove staff training and incentive mechanism, to create high-quality microfinanceteam, in order to promote the smooth implementation of the development strategies.This study was not limited to the aspects of theoretical discussion, but wasclosely combined with the actual development of the micro credit business in ChinaPostal Saving Bank of Zibo Branch. This paper explored a set of all-rounddevelopment strategies, not only can provide scientific guidance for the developmentof the micro credit business in China Postal Saving Bank of Zibo Branch to a certainextent, but also can provide a reference for future similar studies.