Research On Chinese Internet Banking Development Strategies

With comprehensive opening of Chinese banks, it has become a common knowledge that banks should develop and obtain their incitements through innovations. Since it is an informative highly developed internet-economic era nowadays, the development of internet banking are required for Chinese banks in order to benefit from the advantages internet-economy brings about and obtain their long-term innovated development. Internet banking is not purely the simple transformation of conventional banks. However, they lead the traditional banks to the highly intensive development which will cause the further changes of commercial banks in practice.Therefore, based on the innovation internet banking caused in Chinese bank practice, I investigate the strategies for Chinese internet banking, for which I hope it will be helpful for Chinese banks to boost their comprehensive competence.I begin my study from the innovation of internet banking in economics. Then, I explain it in five aspects: Pay-off system; "safety, mobility and profit" management; Risk management; Marketing philosophy and Service pricing. After which I also compare the development of internet banking in different countries, through which I give a short explanation of their differences. Finally, I show my suggestions of the development of Chinese internet banking with the consideration of its reality.The following is the six parts of my paper:Chapter one is the introduction in which I mainly introduce the background, main purposes and significance of my paper. I also show the arrangement of my paper. In last part of this chapter, I introduce relative references in briefly.In Chapter two, I explain the characteristics and the economic explanation of internet banking. At the beginning of this chapter, I introduce the concept of internet banking. The following one is the introduction of six characteristics of it. Based on this, I shoot the economic principle of its innovation which includes positive externality and economy of scales.I study the innovation internet banking have on Chinese bank practice in chapter three. In order to show the innovations internet banking bring to Chinese banks, I have studied this problem through banks' pay-off system; "Safety, mobility and profit"management; Risk management; Bank marketing philosophy management and service pricing which are closely related with Chinese bank practice.Chapter four is the comparison of development of internet banking in different countries. In this part, I investigate the current development of internet banks in Europe, Asia and China, from which I find the differences between the development of Chinese and other countries' internet banking.Strategies for Chinese internet banking development have been studied in Chapter five. In order to give some suggestions to the development of Chinese internet banking, four aspects are included such as strategies for the perfection of pay-off system, risk management, marketing philosophy and service pricing. Among these, based on different stages of internet banking development, the service pricing strategies include cost-based pricing strategy, competitive pricing strategy and client value pricing strategy.Chapter six is the brief conclusions of my paper. A set of innovations internet banking have on Chinese bank practice are coherent with the idea of constructing Chinese processing banks, both of which go in for client centered philosophy. Internet banking have special advantages in improving the business process of traditional banks because however complex the internet banking business process is, the intangible internet banking sand tangible clients do not see each other. In order to benefit from the advantages of information era brings about, Chinese banks need to always follow the idea which takes client value as the core one. The significance of my paper is that if the successive operation of processing banks can find their position and innovation, the development of internet banking will be an illustration of the construction of Chinese processing banks.The innovation of my paper is through the comparison of different development of internet banking in China and other countries, I have found differences between them. In pricing strategies, with the construction of internet banking competence model, I get the conclusion that charged service and cooperative strategy are more beneficial for banks with the application of Nash Equilibrium, calculus and the demanding function of Mcknight and Lee W.. This is the theoretical basis for the cooperation of Chinese internet banking. In client value strategy, through American Wales Fargo Bank case, I analyze that during the mature stage, the client value strategy will be beneficial for internet banking more reasonable and flexible pricing mechanism which will help Chinese banks find the potentials and competence through current client resources and improve their core competence and business process.