A Study On Incentives Mechanism Of Customer Relationship Manager In Chinese Commercial Bank

The article aims to conduct research on the current incentive mechanism of thecustomer_relationship managers in the commercial banks, analyze the exsitingproblems and provide practical solutions. Along with the effectiveness of the customer_relationship manager system in thedomestic commercial banks, the customer_relationship manager team plays a more andmore important role for the development of the commercial banks. How to managethe team? What incentive mechanism to be implemented to motivate the managers tomake efforts, which is align with the directive of the bank advantages. Meanwhile, howto prevent them from behaviors which are not accordance with the bank benefit is alsobecome a issue that we have to deal with seriously. Based onthe thorough thought on the theories of incentives, principal_agent theory,customer values; also based on the comparison of the incentives mechanism betweenthe HK commercial bank, I would agree THREE major problems existed for the currentincentive scheme. FIRST, the current system focus on the accomplishment of the tasks,and the short-term economic KPIs, lacking the motivation on how to add values to thecustomer service, which is aiming on the long-term benefit of the bank. SECOND, theKPIs for the motivation system only conclude the economic KPIs, no service qualityKPIs, no motivation for the account managers to improve the service qualities.THIRD, the organization structure easily leads to the unbalance information situationbetween the bank and the account managers, which will enhance the risk of the asset &capital service of the bank. The solution for the above problem includes: (1) The target for the account manager motivation should focus on the overallvalue of the customers, not the current customer value. The continuous operation ofthe bank decides the long-term profit maximization. (2) The service quality KPI should be added into the evaluation system.Continuous improvement on the service quality is essential to increase the customervalue. It is also the right behavior for the bank to lead the account manager to makeefforts to achieve. (3) Restructure the account manager organization, improve the unbalancedinformation situation; also adjust the benefit structure, make it align with the benefit of III重庆大学硕士学位论文 英文摘要the bank, thus to minimize the risk. The comparison data of amount of customers, increment of the customer valueand the transform from the customer overall value to current value can evaluate theeffectiveness of the improvement on the account manager performance evaluationsystem. The analysis on the motivation for loan anaphase management under differentbenefit structure can evaluate the effectiveness of the account manager benefitrestructure. To summarize the above analysis on the account manager incentive scheme systemand the improvement solution, the conclusion is: the current account managermotivation system for the commercial banks should start from the adjustment of themotivation objective, set the reasonable target which is align with the continuousoperation objective of the bank, transform the focused current customer value to theoverall customer value. Meanwhile, the account manager organization should berestructured, to solve the unbalance information problem. Finally should adjust thebenefit structure of the account manager, align with the bank benefit, fundamentallyprevent the possible risk.