Research on Digital Credit Behavior of Farmers’ Cooperatives—A Grounded Theory Analysis Based on the “6C” Family Model

Abstract

As the main demand side of rural financial services, farmers’ cooperatives are an important part of China’s rural finance. However, due to the lack of effective collateral, farmers’ cooperatives have problems such as difficulty in obtaining loans or expensive loans, which not only hinder the high-quality development of farmers’ cooperatives, but also limit the development of regional rural finance. Digital credit as a new financing model can effectively alleviate the problems of difficult and expensive loans and has received wide attention from the government and academia. Based on this, this paper analyzes the digital credit behavior of farmers’ cooperatives in detail by applying the “6C” family model to the grounded theory, and constructs a theoretical analysis model of farmers’ cooperatives’ digital credit behavior. The findings are as follows: The motivation for the digital credit of farmers’ cooperatives is that the credit procedures are simple, the loan period is short, and the loan interest rate is low; the condition is the farmers’ cooperative reputation advantage and government policy support,; the main form is the participation of cooperatives in short- and long-cycle digital credit; and the consequence is reflected in increasing the income of cooperative members, improving the availability of cooperative loans, promoting cooperative credit building, and achieving sustainable agricultural development. Different participation motivations have different effects on the form of credit. When motivated by simple credit procedures and short loan periods, farmers’ cooperatives choose “Huinong e-loan”; when motivated by simple procedures and low loan interest rates, farmers’ cooperatives choose “Funong Loan”. Different forms of credit will produce different performances. Farmers’ cooperatives choosing “Huinong e-loan” will produce economic performance; farmers’ cooperatives choosing “Funong Loan” will produce economic performance and social performance. In order to deal with the problem of digital credit of farmers’ cooperatives, the government needs to improve the relevant policies and regulations, reduce credit risks, and establish a sound credit system to provide credit guarantees for cooperatives and farmers. Financial institutions need to improve their financial services and innovate financial products and services to meet the multi-level credit needs of cooperatives.