The Influence Analysis Of Network Finance On Jingzhou City’s Rural Banking

Network finance is a new financial form, which is a technology combination of traditional financial model and modern network communication. The development of traditional financial model and financial theory is the basis for the emergence and development of network financial. Network finance is a result of financial innovation, it breaks hours and space’s constraints, subverts traditional financial operation mode to a certain extent, and brings new challenges to traditional financial services.Rural finance is an important force in the construction of new countryside, it plays a very important role in the development of rural economy. The rural financial service demand is increasing along with the development of rural social and economic, the income increasing of farmers. Rural finance is facing great opportunities, at the same time, the development of rural finance is facing enormous difficulties and challenges along with the opening of China financial market and the impact of governance structure and the global economic downturn and other factors, the entering of foreign banks, the competitive environment is more and more intense.Rural finance has become a weak link in the development of rural economy and society because of the restrict by many realistic conditions in Jingzhou. At present, the main service outlets that setting up in rural areas of Jingzhou city are postal savings banks, credit cooperatives, rural banks and small business banking outlets. Rural banks have a slow pace of reform and innovation, inadequate infrastructure, low penetration rate, single way of service, these problems caused that the service quality and efficiency cannot meet rural areas’s economic and social development and the diversified needs of financial services. In the loan business as an example, the traditional banking industry is subject to the risk control process and operation cost, the loan period is long, the capital cost is high, which is unable to meet the rural users’multi frequency small loan demand; in addition, owing to the number of rural residents wide population, low population density, scattered distribution, the traditional banking outlets often can not cover.In recent years, one after another internet financial giants are entering rural market, Ali’s Ant Financial and Jingdong are high-profile force to rural finance, which caused the market’s attention. The Ant Financial has developed small loans service for village Amoy service site, to alleviate loaning pressure for villagers when they are shopping online. The supply chain finance that cooperated by Ant Financial and large agricultural enterprises will be first carried out in Jilin. At the same time, Jingdong will also expand support to rural financial service, introducing Jingdong’s IOUs, micro-finance and other advantages financial products, to solve the financing difficulties, higher cost for farmer. For example, people need seed and fertilizer, they can buy and pay after food sold.The development of Internet has brought new opportunities for rural development of banking industry. At the same time, the rising of Internet Finance in rural areas has brought challenges to rural banks too.Taking Jingzhou city’s rural bank industry in Hubei Province as a case, through investigation and analysis, studying the influence of Network Finance on rural bank industry of Jingzhou City, proposing the ad vices that rural banks in Jingzhou to play their own geopolitical, personal advantage, financial advantage, having the aid of network, to promote the reform of rural financial institutions, improving the rural financial service means, service form, using internet technology to let the countryside finance really landing, promoting the inclusion degree of rural financial, developing rural economy. Exploring the channel of network finance’s popularizing, supervising, and risk preventing.The thesis will analyze the impact of Network Finance on rural bank industry in Jingzhou under the background of the gradual popularization of network finance in rural areas. The research is based on the reality of the development of Jingzhou rural bank industry through qualitative analysis, quantitative analysis, comparative analysis and other methods. According to the analysis, some conclusions and some corresponding countermeasures and suggestions are provided to to promote the further development of rural banks. This thesis consists of five parts, the main contents of each part are as follows:Chapter first for an introduction. This part mainly expounds the research background, the research goal and the significance, the present domestic and foreign research situation, research contents and methods, the main innovation points and shortcomings to make necessary explanation and bedding for the following parts.The second chapter is the theoretical basis of network finance. Firstly, "financial network" and "rural finance" and other concepts are briefly described and defined; secondly, it focuses on the relevant theories of network finance, providing a more solid theoretical studies in order to analyze the effect of Network Finance on rural banking industry of Jingzhou city.The third chapter is the research of popularization and application of network finance in rural area of Jingzhou city. First, the research and analysis of Jingzhou rural area financial network application is carried out; then, a thorough analysis will be done on the popularity and the reasons for the changes of network finance in rural areas of Jingzhou in recent years, to provide sufficient current situation analysis of further research on the influence of Network Finance on rural banking industry in Jingzhou city.The fourth chapter is the SWOT analysis about the development of rural banks in Jingzhou’s network financial services, it analyses in detail the advantages and disadvantages, opportunities and challenges of the development of rural financial network of banks in Jingzhou.The fifth chapter is the countermeasure of network financial development of rural banks in Jingzhou. It puts forward target location and specific strategies of financial development in rural network of banks in Jingzhou according to the fourth chapter’s analysis results.The sixth chapter is the conclusion and prospect,it provides a brief summary, summarizing the research achievements and shortcomings for this article, and giving suggestions to future relevant research.