The selection of reform models for provincial rural credit cooperatives unions in China using an extended CPT-TODIM method based on novel type-2 fuzzy numbers

The selection of a suitable reform model for provincial rural credit cooperatives unions (PRCCUs) is a pivotal aspect of China's ongoing financial reform endeavors. This involves optimizing internal processes, enhancing efficiency, minimizing operational costs, elevating service quality, strengthening financial innovation capabilities, and promoting the healthy growth of rural financial markets. However, current research on this matter primarily concentrates on qualitative analysis. As of yet, a scientifically grounded decision-making framework from a quantitative standpoint has not been developed. This absence of quantitative analysis results in inaccuracies in research findings, thereby hindering the practical applicability of outcomes. To tackle this formidable challenge, we propose an innovative quantitative analysis framework employing the multi-criteria group decision-making method. This framework, which builds upon the cumulative prospect theory (CPT), the TODIM method, and the most recent advances in type-2 fuzzy numbers (T2FNs), is referred to as the T2FNs-CPT-TODIM. Initially, we define a novel score function, followed by the introduction of a fresh method for computing the distance between the T2FNs. Subsequently, our model pioneers an exclusive weight allocation strategy for decision-makers, grounded in the principles of Dice Similarity. Furthermore, the objective weights of criteria can be computed utilizing the Distance Correlation-based CRITIC approach. We then optimize the rankings by applying the advantage of gains and losses preference in the CPT-TODIM. Ultimately, we apply our proposed model to the practical task of selecting the optimal reform model for a specific PRCCU. Thorough comprehensive sensitivity and comparative analyses, the results validate the theoretical robustness and practical efficacy of our proposed method.