Study On Financial Service Innovation Of Domestic Commercial Bank

Innovation is the soul of progress of a nationality, and impetus of a nation'sprosperity. The economic system reformation of our country from 80's is the samestep as international financial innovation. However, our activities of financialinnovation were not able to keep the step of the other countries'. Nowadays, domesticbanking industry is facing the comprehensive competition of foreign banks whentransition time passed.----foreign banks absolutely have advantages in management,technology, services etc. The competition in financial services area will beincreasingly severe. It is imperative that domestic commercial banks make good useof modern technologies, provide diverse and individual financial services according todifferent demands if they want to exist and develop. This is in essence financialservice innovation of commercial banks concerning revolutionary transformation infinancial technologies, products, services, organization and management.This article begins with the study of innovation, and keeps the tracks ofinnovation service innovation financial service innovation, introducing serviceoriented approach in service innovation theory to review theoretic problems about theinnovation impetus, microcosmic market environments of innovation, innovatingprocess and innovation diffusion among the whole industry. Moreover, it keeps eyeson the practice of domestic commercial banks' innovation activities, concentrating onthe macro-and micro-environments in which domestic commercial banks innovate,driving force of innovation, peculiarity of our innovation and various factorsrestricting our innovation. Finally, the innovation system is established. Whichdemands domestic commercial banks change thoughts, form service-centre notion atfirst, and innovate from products, which is the core, technology ,which is the baseorganization and management, which is the guarantee.Quickly developing economy, improving market institutions have created betterconditions for our commercial banks. With the trend of global economy, free finance,the Financial Integrated Operation and advanced technology, our domesticcommercial banks will cater for a new following climax of innovation, which willpromote the development of our economy and finance greatly.