The Third Plenum of the 20th Central Committee of the Communist Party of China proposed to actively develop science and technology finance, green finance, inclusive finance, pension finance, and digital finance, and strengthen high-quality financial services for major strategies, key areas, and weak links. In terms of inclusive finance, regulatory agencies promote the implementation and refinement of the financing coordination mechanism for small and micro enterprises, encourage financial institutions to innovate financial products, increase the supply of inclusive credit in the banking industry, and further expand the coverage of inclusive financial services. The latest data released by the State Administration of Financial Supervision and Administration shows that by the end of the third quarter of 2024, the balance of loans used by banking and financial institutions for small and micro enterprises (including loans for small and micro enterprises, loans for individual businesses, and loans for small and micro enterprise owners) was 79.8 trillion yuan, of which the balance of inclusive small and micro enterprise loans with a total credit limit of 10 million yuan or less per household was 32.6 trillion yuan, a year-on-year increase of 14.7%. Financial 'live water' is accelerating towards weak links. Establishing a financing coordination mechanism to support the high-quality development of small and micro enterprises is a practical need for stabilizing the macroeconomic situation and promoting employment, as well as an inevitable requirement for promoting economic transformation and upgrading. In order to guide credit funds to quickly reach grassroots small and micro enterprises, the State Administration of Financial Supervision and the National Development and Reform Commission have taken the lead in establishing a "coordination mechanism to support financing for small and micro enterprises", focusing on both supply and demand, and comprehensively solving the problems of difficult financing for small and micro enterprises and difficult bank lending. Lin Cong, Deputy Director of the State Administration of Financial Regulation, introduced that at the national level, the State Administration of Financial Regulation and the National Development and Reform Commission will take the lead, with relevant departments and banking institutions jointly participating, responsible for overall coordination and coordination, and strengthening the docking and coordination of industrial policies, fiscal and tax policies, and financial policies to better form the multiplier effect of policy coordination. At the local level, provinces, cities, and counties should establish corresponding work mechanisms, refine plans according to local conditions, and ensure the implementation of various work tasks. Especially at the county level, a specialized team should be established to organize visits to enterprises, conduct demand surveys, and provide financing recommendations. At the bank level, specialized teams should also be established to mobilize internal resources, tap into the enthusiasm of grassroots banking institutions to dare and be willing to lend, and proactively and timely connect with the financing needs of small and micro enterprises. Jungle stated that establishing a financing coordination mechanism for small and micro enterprises aims to achieve three goals: firstly, reaching the grassroots level directly. Low cost credit funds should go directly to the grassroots level, covering the "last mile" of benefiting enterprises and the people. The second is fast and convenient. Banks generally need to make a decision on whether to grant credit within one month. For eligible enterprises, banks should open up green channels, optimize processes, and accelerate processing speed. Thirdly, the interest rate is suitable. By saving information collection costs, reducing intermediate links, lowering lending costs and additional fees, the overall comprehensive financing costs of small and micro enterprises can be lowered. The financing coordination mechanism for small and micro enterprises in various regions is actively being promoted. The Chongqing Financial Regulatory Bureau, in conjunction with the Chongqing Development and Reform Commission, has established a coordination mechanism for supporting financing for small and micro enterprises in Chongqing, and has urged banking institutions within its jurisdiction to issue detailed operating procedures for non repayable loans, in order to promote the implementation and effectiveness of policies as soon as possible. It is reported that the core of this mechanism is to establish a working team at the county level and build a bridge for precise docking between banks and enterprises. Local financing platforms are also actively playing a role. Guotou Group, managed by the State owned Assets Supervision and Administration Commission of Yichun City, Jiangxi Province, adheres to the simultaneous development of "equity investment" and "industrial investment". Through industrial fund investment, equity investment support, and industrial incubation and cultivation, it has increased its support for equity investment in private enterprises. Currently, it has invested in 11 private enterprise projects such as Zhejiang Feitu Imaging Technology and Jiangxi Yazhong Electronic Technology, with a total investment of 201 million yuan. Agricultural Bank of China regards the comprehensive and efficient implementation of the financing coordination mechanism for small and micro enterprises as a key focus of the current development of inclusive finance business Huang Jianqin, General Manager of the Inclusive Finance Division of Agricultural Bank of China, said that Agricultural Bank of China has formed a dedicated team to go deep into parks, communities, and rural areas to obtain the real financing needs of enterprises. Priority should be given to online credit product integration for small and micro enterprises on the recommended list. For offline credit business, establish a green approval channel, optimize the loan process, and improve loan efficiency. It is reported that Agricultural Bank of China has established about 300 characteristic branches of inclusive finance, 500 exclusive institutions of inclusive finance, and more than 10000 key development outlets of small and micro credit business nationwide, comprehensively promoting the sinking of inclusive finance business. To efficiently promote financing for small and micro enterprises, our bank has established a special working group, formulated implementation plans, and established a mechanism for coordinating financing for small and micro enterprises Zhang Xueding, Chairman of Sanmen Rural Commercial Bank under the jurisdiction of Zhejiang Rural Commercial United Bank, stated that the bank strengthens cooperation between the government and banks, conducts regular visits, accurately connects with the financing needs of small and micro enterprises, and achieves the goal of "lending as much as possible". As of the end of November, a total of 4338 households have been visited, and 2824 households have been granted credit with a total amount of 1.363 billion yuan. The advancement of financial technology contributes to improving the quality and efficiency of inclusive financial services. The accelerated application of modern technologies such as big data, mobile payments, and the Internet of Things has provided feasibility for commercial banks to break through branch limitations and enter county-level and rural financial markets. In the past, financial institutions faced challenges such as information asymmetry and high operational costs when providing services in rural areas. With the use of information technology and the promotion of financial technology, opportunities have been brought to the development of inclusive finance Professor He Guangwen from the School of Economics and Management at China Agricultural University stated that financial institutions should actively utilize technological means to serve rural areas, new business entities, and farmers. Currently, rural commercial banks are developing mobile banking and promoting inclusive finance. Liandu Rural Commercial Bank has launched cloud signature function, completing the online conversion of contract texts such as online credit authorization. The bank has 247500 mobile banking customers, accounting for 48.42% of the total number of customers in the bank. Dongyang Rural Commercial Bank, under the jurisdiction of Zhejiang Rural Commercial United Bank, provides full process online services to nearly 20000 enterprise users through the new generation of enterprise mobile banking "Zhejiang Enterprise Intelligent Management" product application. Experts say that the rapid popularization of mobile financial services such as mobile banking has conveniently and quickly met the basic financial needs of payment settlement, transfer and remittance in counties and rural areas, greatly reducing dependence on physical branches; A series of full process online financing products developed based on technologies such as big data and cloud computing can automate and operate all stages of approval, signing, loan disbursement, and repayment online, effectively improving the coverage of financial services for customers in remote areas. The application of big data technology helps to turn small and micro enterprise related data into loan credit. By analyzing tax data, electricity consumption data, and market supervision reward and punishment data of small and micro enterprises, financial institutions can better see the face of financing enterprises and evaluate loan amounts. In response to the problem of insufficient collateral for financing for small and micro enterprises, Guigang City Bank in Guangxi Province has collaborated with the tax department to exchange data, continuously improve the quality and efficiency of the "bank tax interaction" cooperation mechanism, assist enterprises in "exchanging credit for loans", and enhance the efficiency of bank credit. The company needs to apply for a loan of over 700000 yuan recently. The bank staff reviewed the company's tax credit rating and related materials and quickly granted credit, "said Wen Zebin, the legal representative of Guigang Zerun Energy Co., Ltd. The digital transformation of banks is also beneficial for reducing the financing costs of enterprises. On September 29, 2024, Postal Savings Bank of China issued a notice on actively responding to the association's initiative to continue reducing payment fees for small and micro enterprises and individual businesses. Postal Savings Bank of China (Postal Savings Bank of China) stated that the bank is continuously improving its digital service system for customers, providing precise identification of small and micro enterprises, accurate implementation of fee reduction policies, and precise drip irrigation of fee reduction dividends for payment settlement products such as account opening, transfer and remittance, electronic banking, and inquiry letters. This provides technological support for the effective implementation of fee reduction and profit sharing policies. The high-quality development of inclusive finance should be led by the market and guided by the government. The main responsibility of the government is to improve inclusive financial infrastructure, and its leading credit and guarantee systems play an important role in addressing information asymmetry, preventing risks, and supporting key areas; The market has advantages in demand driven, credit information boundary expansion, risk identification, and data exploration. We need to respect market laws, and at the same time, in shaping a diverse ecosystem, we should have clear division of labor, distinctive features, and orderly competition, forming a positive interaction between large and small banks, banks and non bank institutions, commercial interests and social responsibility. To promote the high-quality development of inclusive finance, it is necessary to build and improve a multi-level inclusive finance market system. China's inclusive financial services have presented a scene of 'leading geese and flying geese together'. Large banks, small and medium-sized banks, and rural financial institutions have jointly built a multi-level inclusive financial service system. Small and medium-sized banks and large banks have their own strengths in engaging in inclusive financial services, and it is not a 'zero sum game'. We need to combine their respective advantages and develop in a differentiated manner, continuously broaden the breadth and depth of inclusive finance, and jointly serve millions of small and micro enterprises, "said Jiang Jianping, Deputy General Manager of the Inclusive Finance Business Unit of Agricultural Bank of China. Zhou Xuqiang, President of Qifu Digital Technology, stated that small and medium-sized city commercial banks and rural commercial banks face two major challenges on the road of digital transformation: scarcity and imbalance of data samples. The scarcity caused by insufficient sample size limits the accuracy and even effectiveness of model development; The imbalance caused by the lack of coverage of sinking and long tail customer groups in data samples limits the applicability of the model to a wider population, thereby limiting the availability of inclusive financial services. To break this dilemma, it is particularly urgent to build a technology co construction and sharing, and data security circulation channel among commercial banks. Currently, information asymmetry is the main factor leading to high credit risks in inclusive finance for banks, and it is also the main reason affecting the enthusiasm of banks. At present, China's credit reporting system still needs further improvement, mainly manifested in the incomplete inclusion of some transaction information of small and medium-sized enterprises, low-income individuals and other institutions or groups in the credit reporting system, a large coverage of credit reporting but a small effective financing population, and a large number of users without loan records in the credit reporting system. In the future, expanding the coverage of the credit system, improving the quality of information in the credit system, and continuously improving the credit system are the top priorities for developing inclusive finance Dong Ximiao, Chief Researcher of the China Association for Market Regulation, stated. (New Society)