Exploring Innovative Paths for Rural Finance Driven by Digital Technology: Based on The Practice and Reflection of MyBank

Abstract

MYbank, officially established on June 25, 2015, is one of the first private banks in China approved by the China Banking Regulatory Commission. It is also the first bank in China to implement cloud computing in its core systems, fully utilize artificial intelligence for small and micro business risk management, employ satellite remote sensing in rural finance, and apply graph computing to supply chain finance. As a technology-driven bank, MYbank operates no physical branches and instead provides purely online financial services to small and micro businesses through its "310" contactless loan model. This article examines MYbank's evolution from the setbacks of its "Wangnong Loan" program to the construction of an innovative model based on digital technology. It analyzes the role of digital technology in addressing issues such as a lack of rural credit information and inefficient risk management, and explores the logic of sustainable development in rural finance in light of ESG principles. The research shows that as of the end of June 2022, over 49 million small and micro businesses had used MYbank's digital credit services, 80% of whom had never previously received a bank operating loan. This exploration provides practical insights for the digitalization of rural finance.