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To solve the basic contradiction of inclusive finance, the key lies in reducing transaction costs and risks, and improving the sustainability of inclusive financial services. After being standardized, China's trust industry has innovated a sustainable business model in inclusive financial services. On the capital side, trust companies raise funds through capital trust plans; on the asset side, they use funds through a variety of financial instruments. Compared with commercial banks and insurance companies, trust companies do not have obvious cost advantages on the capital side. However, Trust products have attracted the attention of the industry due to their flexibility and innovation. Among them, the traditional mode is characterized by the trust company giving full play to the financial function advantages given by the system, combining with small loan companies, policy guarantee companies and other institutions, effectively reducing transaction costs, reasonably sharing risks, and providing inclusive financial services for vulnerable groups. Furthermore, the new mode of technology empowerment further reduces transaction costs, overcomes the risk of information asymmetry, and makes the trust company inclusive financial services more sustainable, thus providing a new idea for inclusive financial services.
Li et al. (Thu,) studied this question.