Inclusive Finance of China: The Practice of Postal savings bank of China

This article reveals the nature and economic essence of a bank within the system of financial relations with the state and society. The bank is considered as an intermediary in the conduct of entrepreneurial activities from the perspective of fulfilling a social mission, which is reflected in the transformation of attracted savings into investment resources. The object of the study is China’s postal savings system. The subject is the Lushi financial model and the program of the Postal Savings Bank of China (PSBC). The purpose of the study is to develop an author’s position regarding the concept of inclusive finance in the context of postal banking. In the article, the task is analysis of the concepts of postal banking and inclusive finance; study of the evolution and current state of postal banking in BRICS countries, analysis of the Lushi model and PSBC. The following methods were used: systemic, historical, theoretical cognition, scientific abstraction, and logical approach. The author hypothesizes that the development of inclusive finance largely depends on the bank’s strategy. The social strategy of PSBC China was analyzed, using the example of the Lushi financial model and the PSBC of Self-Commitment program. An assessment of the current state of postal banking and the role of PSBC China in the issues of inclusive finance has been provided. The conclusions include: the author’s position on the interpretation of the concept of financial inclusion, which differs from existing ones in that it is based on the analysis and study of the postal bank’s activities, defining it as an integral part of the bank’s strategy; the postal service can be a link between the government and society; China has achieved the best results among BRICS countries; postal banking is distinct from classical banking business and is a resource for developing inclusive finance. Recommendations for the development of postal banking are proposed: to develop a socially oriented bank strategy, ensure quadrilateral interaction, form a sustainable postal banking ecosystem, and use a system of indicators when evaluating inclusive finance. The scientific novelty lies in the justification of the effectiveness of postal banking and its connection with inclusive finance. The results of the study can be used to build a scientific rationale for the accessibility of financial services.

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