Study On The Credit Business Process Reengineering Of The Agricultural Bank Of China Jilin Province Branch

With the deepening of the reform of the financial system in our country and the complete opening of the financial market after the entrance to WTO of our country, the competition among the banking field will become keen day by day, especially for the asset type business of the bank regarding the credit business as the focus whose goods have the extreme similar quality. Then how to stand up in the same field successfully and how to form one's own core competitive ability is the issue in front of the agricultural banks to be solved badly. This article propose the new mode for the process operation of the credit business for the agricultural banks through rethinking the operation pattern of the credit business of the bank and relating with the analysis of the mechanism of the construction of the organization and the application of the IT and network information techniques in the banking, etc. This is the unavoidable reform for the process of the present credit business of agricultural banks under the situation that the absolute amount and the relative amount of the faulty loan increases. The operation mechanism of the process is "making balance crosswise before and behind the counter and the vertical restriction between the high and low levels". It installs the four posts including investigation, examination, consideration and approval. The loaning process insists on the principle of assessing the grade first followed by the conferring the credit with the using credit as the last. In order to assure the smooth operation of the new system, the banks set seven regulations including the system of separation between the examination and loaning, management by authorization, loaning examination committee, main incumbent, responsibility investigation, report and preparation of the credit business and doing the special things in special means. Since the implementation of the present process of the credit business, there are four serious problems troubling the business and operation of the agricultural banks. The first is that the process chain is too long, which reduces the working efficiency to make the development of the new customers useless and the storing customers drain gradually. The second is that the process reform goal for the utilization of the credit asset quality can't be reached and the faulty loan amount increases in recent years. The third is that the present process is divided too small in hoping to achieve the automation of the transaction of the business through the tiny subdivision. This kind of "non-human organization"seriously dampens the enthusiasm of the staff. The fourth is that the process is divided too tiny and the function departments are too many, which causes the increase of the cost of the organization coordination. The origin of creating these problems: first, the means of tiny subdivision of the process doesn't apply to the need of the credit business operation of the banks; second, the insufficient mastering of the information of the customers discussed for the members of loan examination committee causes the high risks of the determination; third, the management idea of high degree of centralization the power and lacking power encouragement system suppresses the activity of the staff and even there are seeking rent activity; fourth, the starting point of the present front and back counter restriction is the management idea that the human beings were born wicked, which doesn't conforms to the real situation of the credit group of the agricultural banks; fifth, hard selection index system influences the development of the aiming customers. Since when the credit business process of the agricultural banks was designed first, they only thought the process in terms of process, however, according to Hammer, process recreation is the ultimate rethought and complete redesigning of the business process in order to achieve the dramatic change of the key index in measuring the performance such as cost, quality, service and speed. If agricultural banks intend to reconstruct the present process, they have to rethink the operation pattern. The author of this article proposes the basic conditions for the operation of the agricultural banks according to the environment of the banking field. The first is the complexity of the people hypothesis. Since the credit people include economic ones, social ones and the natural real ones, the process and system must have the function of restrictingand encouraging all the staff. The second is to give up the original hard loan selection index system and to construct the soft index system in order to provide larger free space for the customer manager. The third is that the decision right should belong to the person shouldering the responsibility and having the ability. The fourth is to build the effective encouragement mode and change the past means of centering on punishment. The process reconstruction obeys the principle of customer satisfaction, staff satisfaction and banking interest. The credit business process after reconstruction still obeys the principle of assessing the grade, awarding the credit and using the credit with the change of the concrete meanings. The assessment of the credit grade of the customers is through the construction of the virtual banks, taking advantage of the professional advantage of the accountant agency to examine the truthfulness of the financial report forms of the customers and then automatically assessing the grade with the artificial intelligence of the computer. Appraising and deciding the amount degree of the customers: compared with the present process, this link is more important than the investigation link. Before the customers use the credit of the bank, the credit staff have enough time to investigate and do the research to master the comprehensive information, based on which they could make the decision. Then they sign the agreement with the customers to clarify the amount degree for the next year credit. Establishing the risk monitoring index system reached by the customers in each point of time of the whole year. The use of the credit for the customers: in the process of the business after reconstruction, the investigation link has been done in the link of the awarding credit, therefore, the loan could be sent out as long as assuring that the risk monitoring index meet the demands. The efficiency of the credit business process of agricultural banks becomes high apparently. The individual ability has the space to demonstrate for the staff and under the impulsion of the encouragement system, the activeness in developing and maintaining the customers. The agricultural banks could also control the trend of the increase of the faulty loans of the new customers effectively. The index assessment system after the reconstruction defines the threeindexes including satisfaction degree of the customers and staff and the bank interest. Through the quantitative measurement and the qualitative analysis of the expert assessment, these three indexes of the credit business process are better than the present ones. For instance, turnaround time of the process reduces to thirty-eight days from one hundred and forty days before the reconstruction. One loan needs thirty-five persons to participate from the appliance to the dealing out before reconstruction while now it only needs fifteen persons. The matching assurance measurement of the credit business process after the reconstruction: the first is the credit staff qualification system. Appraising and deciding the awarding credit amount degree according to the business, ability, quality and dividing the credit staff into intern customer manager, assistant customer manager, mid-level customer manager, high-level customer manager and seniority customer manager. The second is new-type loaning examination committee system. Loaning examination committee is not the decision making organization any more but functioning as the intelligence support. The final decision is made by the president of the bank having the right and the members appear at random. Inscribed vote is favored for the examination of the committee members and finding out the talents. The third is the reconstruction of the organization. The organizational levels are compressed from the four to the three; constructing the virtual bank to exert the function of the professional departments of the society. The fourth is teamwork pattern. Once the team is built up, it will exist in the transaction of the business of the customers in agricultural banks. The fifth is intelligence supporting system. Changing the former restriction between the front and back counter to the cooperation. The back counter provides the intelligence support for the front one. The sixth is new-type credit management system. Exerting efficiently the function of the artificial intelligence (AI), single database. Constructing the attestation system. The seventh is constructing the inner market. The eighth is strict audit and monitoring system. The ninth is education and training system for the development of the staff with the bank together.In the keen competition of the same field, in order to stand up successfully, the present credit business process has to reform. I hope this article will provide the reference for the reconstruction of the credit business process of the agricultural bank.