Research On State-owned Commercial Banks Product Management And Innovation

In old China, Emperor Qin Shihuang built the Great Wall to resist against the enemies outside the country door. But Nowadays, financial war which has broken the country border limitations is just unfolding. After China's entrance to WTO, China's financial field is now facing challenges from western business banks. Obviously, it is not advisable for the present financial departments to do as the Old Chinese built the Wall against the enemies outside the country door. The fierce competition is approaching in which competitors will either survive or be defeated. So the financial business as the economic center should be the main force in the international competition. It is true that China's financial business has developed enormously in the past twenty years since China began the reform and open–door policy. However, compared with western advanced countries, China's economy still lag behind. As China formally enter WTO, China's financial reform has been performed more deeply. The up -to-date market information indicates the competition among financial products has been the main form of competition in which all financial organizations have done the direct competition. The difference in terms o f management, innovation done by State-owned Business banks, foreign-funded banks, Ltd. Co. banks etc. has directly influenced its market competitiveness. In fact, After China's entrance into WTO, there has been challenges that foreign–funded banks brought state-owned business banks. The most direct forms of these challenges are innovative products and high-quality services affiliated .So it is really instructive for China's business banks to explore the advanced approaches done by western business banks in terms of managements and innovation to improve our own management and innovation. This article comprises four chapters.Chapter 1 mainly introduces some concepts, characteristics of business bank products and theories and practices for managements and innovation of bank products the necessity to study bank product management and innovation. In this chapter, the 1st part is about concepts of bank products. Bank products include three levels: core products, visible products and additional products. The whole bank products include invisible services as well as visible ones such as credit cards, deposit booklets etc. Broadly speaking, the services provided by such as checks, deposit accounts, loan business, advising of money management etc. are all bank products. The 2nd part introduces the characteristics of bank products. As banks are the enterprises specializing in managing money, its products have their own inner characteristics, the first is the visible feature, the second is the feature of sharing quality, the third is its imitating and the fourth is its irregularities. The 3rd part states the necessity of state-owned bank product management and innovation.Chapter 2 mainly introduces the present state and problems of state-owned business products management and innovation. In this chapter, the 1st part analyzes state-owned bank product management and innovation in terms of product structure, product function, product novelty and product marketing. The 2nd part mainly points out the problems in state-owned bank product management and innovation such as lack of idea of market-oriented product management, lack of structural frame of effective product management, lack of scientific innovative mechanism and lack of definite brand product strategy etc.Chapter 3 mainly introduces advanced methods of product management and innovation performed by foreign business banks. In this chapter, the 1st part introduces the clear market orientation of foreign business bank products and how foreign business banks attach importance to market survey before they put their products to the public. The 2nd part introduces how foreign business bank s attach importance to differentiation, systematization and affiliation of products, i.e, meet different demands of customers for different products. They design those financial products into a complete set of products in advance to meet the different needs of customers in life cycle in a whole scale .The 3rd part mainly introduces scientific feasible product management and innovative mechanism of foreign business banks. The advantages of foreign business banks in product management and innovation mainly benefit from their complete sets of effective product management and innovation mechanism. The 4th part mainly introduces how foreign business attach importance to training social managers and points out that the role of social managers is to carry out his/her cross-level responsibilities, carry out business projects and overtake district and field limits and on basis of these establish a whole set of complex personal relationship and provide new services for customers so as to change some potential; customers into real customers in promoting traditional businesses and in the end, realize business expansion. The 5th part mainly introduces how foreign business banks attach importance to establishing bank famous brand and symbol.Chapter 4 mainly puts forward five solutions to state-owned bank product management and innovation on the basis of the above analysis: the 1st is to establish the idea of market–oriented product management, the 2nd is to form scientific and feasible system of product management organization, the 3rd is to make product innovative mechanism perfect to intensify the innovation, the 4th is to set up scientific product marketing strategies; the 5th is to carry out financial brand strategy.