Research On The Competitive Strategy Of Inclusive Financial Business Of XH Rural Commercial Bank

Inclusive finance was first proposed by the United Nations.It advocates to provide all sectors and groups of society in need with appropriate and effective financial services at an affordable cost.It is good for the financial inclusiveness,the development of real economy and the realization of social equity and justice.Since the publishment of China’s first national inclusive financial development plan“Promoting Inclusive Finance Development Plan(2016-2020)”,financial institutions have attached great importance to the development of inclusive financial business.The competitive situation of inclusive financial market has turned from blue ocean market to red ocean market,and the competition of inclusive financial business in county financial institutions is particularly fierce.As an important part of China’s financial system,rural commercial banks have been responsible for supporting agriculture,rural areas and farmers,as well as the rural revitalization and the development of the real economy in county territory for a long time.Rural commercial banks are the main force for county financial institutions to develop inclusive financial services.This paper selects XH Agricultural and Commercial Bank in Suzhong County,Jiangsu Province as the research object.Although XH Rural Commercial Bank is a leader in local banking institutions in terms of inclusive financial business,it also faces great development pressure.Based on the theory of enterprise competitive strategy,this article uses PEST,Porter’s Five Forces Model to analyze the external environment of XH Rural Commercial Bank deeply.Using the external factor analysis matrix,it is believed that XH Rural Commercial Bank can grasp opportunities and resist risks.When analyzing the internal conditions of the enterprise,it focuses on discussing both the enterprise resources and capabilities.At the same time,using the internal factor analysis matrix,it is concluded that its internal conditions for developing inclusive financial business are strong.Based on comprehensive analysis,it is believed that XH Agricultural Commercial Bank should continue to develop inclusive financial services.Based on SWOT analysis and QSPM matrix,select a feasible business differentiation competition strategy and be in line with the bank’s current business development strategy.Furthermore,this article proposes that XH Agricultural Commercial Bank adopt competitive strategies in three aspects: product differentiation,channel differentiation,and service differentiation,and it helps to formulate targeted security measures from three aspects: personnel,technology,and policy.This article studies the competitive strategy of XH Agricultural Commercial Bank’s inclusive financial business,with a view to continuously improving its comprehensive strength,continue to maintain the competitive advantage of inclusive financial services among local financial institutions,stabilize and actively expand the rural and small and micro enterprise markets.At the same time,it provides reference for other small banks to develop inclusive financial business further under the current situation.