Microfinance is a kind of loan innovation that traditional commercial banks can't cover customers. Mainly solve some small, scattered, short-term, unsecured and unsecured capital needs. It is an effective tool to get rid of poverty and become rich by financial means, and it is also an important financial support for the sustainable development of China's economy.

According to the statistics of "Analysis Report on Competition Pattern and Development Prospect of Microfinance Industry in China", at the end of 201/kloc-0, there were 3,027 microfinance companies in China, with a loan balance of 240.8 billion yuan and 32,097 employees. 2011At the end of May, the national credit balance was 62 trillion yuan, of which the loan balance of microfinance companies was more than 300 billion yuan, accounting for 0.5%; Pawnshop balance10 billion yuan, accounting for 0.16%; The guarantee company is expected to be 30 billion yuan, accounting for 0.04%.

As a supplementary subject of the financial industry, the emerging microfinance industry has not yet formed a strong industry scale, and microfinance institutions are generally small in scale, lacking the ability to resist risks and development potential.

Microfinance has established a financial system, and its goal is completely different from that of traditional banks. Through a series of loan technology innovations, it not only provides ways to relax mortgage guarantee and alleviate information asymmetry, but also provides technologies to reduce transaction costs, thus lowering the threshold for low-income groups to enter the loan market on an equal footing.