Study On The Development Strategy Of Small And Micro Loans Of J Rural Commercial Bank Under The Background Of Inclusive Finance

Under the background that the Central Committee of the Party and The State Council have given policy support and attached great importance to the development of "inclusive finance".Vigorously developing inclusive finance is an important means for J Rural Commercial Bank to improve economic benefits,an important way to diversify business risks,and an important method to improve customer structure.And an important opportunity for J Rural Commercial Bank to fulfill its social responsibility and catch up with the Times changes.In light of the strategic significance of inclusive finance to small and micro loans of J Rural Commercial Bank,this paper re-examines the deficiencies of J’s small and micro loan business through literature review,case study,qualitative analysis,with a view to repositioning and selecting its development strategy.This is concluded that: First,the development of inclusive finance contributes to the optimization of J’s customer structure,diversification of operational risks,and improvement of regulatory ratings,thus shedding the restraints as a high-risk institution.Moreover,it facilitates J’s social responsibility fulfillment and fintech application.Second,in the context of inclusive finance,J’s small and micro loan business has encountered bottlenecks,including low loan effectiveness,insufficient supply,monotonous service products,and high NPL ratio in business transformation.All these result from the banks’ neglect of strategic planning.Third,to address J’s current defects,namely immature small and micro loan model,monotonous small and micro loan credit form,varying competencies of talent pool,high risk that comes with high rates,and poor marketing capabilities,it is suggested to seize the opportunity of inclusive finance and emphasize "growth strategies".Besides,"defensive strategies",such as enhancing business capabilities,improving credit processes,and building talent teams,are recommended to avoid internal weaknesses and external threats,thus boosting its small and micro loan business.Last,in the implementation of its small and micro loan business strategy,J should make improvements by adopting a customer-centered internet marketing model,creating a distinctive brand to offer precise services,enhancing business capabilities to build a professional workforce,improving credit processes to achieve whole-process risk control,and optimizing performance appraisals to maximize staff effectiveness.