| Development of intermediary business is an important indicator of the modernization of commercial banks and financial industry.In recent years, Bank of China (hereafter referring to the Bank) has made some progress in the development of intermediary business, but comparing with overseas competitors, Bank of China is still left behind, in terms of scale, business scope, and business category and businessrevenue.Therefore, it makes a great deal of sense to the Bank to aggressively develop the intermediary business, grow new profit generator, increase the Bank's operating incomes, and enhance the service level.Chapter One is the summary of the Bank's intermediary business basic theory and knowledge, including the brief introduction to the meaning, classification, and characteristics, and analysis of the Bank's intermediary business current position and potential problems.Chapter Two is the survey of overseas commercial banks' intermediary business current position and sales and marketing strategies. Overseas commercial banks are pretty mature in their intermediary business development, not only by the wide business scope, detailed business categories, big percentage of intermediary business over overall incomes, but also by their advanced service level, and good quality of the service people.Since 1980s, western commercial banks have rapidly developed their intermediary business.Not only their business revenue has grown tremendously, some of which has already surpassed their loaning business volume, but also their operating incomes has grown largely. On average, the percentage of intermediary business volume represents at least 25% of commercial banks' total revenue; some larger banks have surpassed the threshold of 50%.For example, in the fiscal year of 1992 to 1993, UBS got 60-70% operating incomes from their intermediary business;In 1992, Commerzbank earned 34 billion German Mark, which represented 65% of their total yearly profit;Japan Commercial Banks have enjoyed 40% growth year over year since middle 1980's; In mid-1990, many Asia-pacific based commercial banks had the level where intermediary business revenue have reached to 25% or more in overall revenue. Some had reached the level of 45% and more.In summary, the development of out-of-balance-sheet business has become the trend of international financial services business development, same as commercial banks' operational internationalization and capital securitization. In the meanwhile, the intermediary business carries big risks because of the volume and unforseenability, since late 1980s, western commercial banks have started to strengthen the supervision of the intermediary business, and been actively searching for more effective ways of supervision and control.After almost 20 years trial-and-errors, they have developed some effective supervisory measures and methods.Chapter Three is the detailed analysis of the Bank's operating environment.Recently, the Bank has taken advantages of her liquid asset, advanced technology, wide-spread sublet, efficient clearing systems, to focus on exploring and applying her new technology, new product and new service, to actively search for new service model, promote new service concept, widen business scope. All these efforts have pushed the development of intermediary business, but there are some problems too, such as out-of-date managerial theory, unbalanced product structure, lack or low charging standard, lack of business integration, weak business management base and lack of good sales people, etc.Chapter Four is the detailed explanation of the Bank's current market competitive analysis and positioning of her intermediary business. Including market competitive analysis, target market selection and core competence analysis.The Bank has categorized the targeted markets, the conditions of the effective market categorization are measureable, enterable, and profitable, and the standards of market categorization should be based on the current market positioning of the Bank, there should be differentiated standards for different financial products and services, it's important to keep the integration mindshare, get to know and utilize the differentiated standards and cross functional effects of difference, so as to better understand the development trend of categorization standards and different variables.It is a must for the Bank to accurately position herself in this diversified market, in order to shorten the time-to-market, and to gain competitive advantages.Repositioning is not implying the remodeling of the Bank's market image, but is actually a set of marketing strategy to differentiate the Bank from the competitions according to her actual business scope. The purpose is to become the best of greed in one or some targeted market segments, to help clients to better understand the real difference between the banks. In order to do so, two methods need to be implemented; the first method is the development positioning based on the Bank's core competence. In other words, positioning in the market is a process of identifying competitive advantages, selecting competitive advantages, showing competitive advantages, it has to derive from the core competence.The second method is to enhance the positioning of products' sensational symbol. The Bank should aim to increase the confidence level of the clients, by applying to such aspects of intermediary business as wide-spread coverage of service, multiple forms, and flexible appealing.Chapter Five is the analysis and suggestion of market promotion of the Bank's intermediary business developmentFirst of all, the argument is about the categorization and development of the Bank's intermediary business.From the industry perspectives, the government should loosen up on some of her financial supervisory measurements, to allow commercial banks to widen their business scope; the government should also create the fair-play environment for the banks, so that the banks could have legal reference to their intermediary business charging policies.From the Bank's operational perspectives, the Bank should emphasize on the development of intermediary business, in the aspects of mindshare and business development strategies, move away completely from the traditional operating philosophy such as over emphasizing on assets and liabilities, which was formed under the "planned economy" system in the country; Basing on evolving concept, the Bank should set the pace of reasonable development phases and goals, and implement scientific development planning.Secondly it covers the Bank's market promotional network construction of her intermediary business. In the process of internet economy booming, the Bank is pushed to the position of internet resources integrator, sales through internet becomes the new focus of sales promotion among all the banks. Being the internet integrator, the Bank's sales through internet should change from current simple internet banking to online integrated financial service sales, i.e. pioneering to build integrated online financial service website, integrating multiple financial institutional online services, linking directly with other financial institutions" transaction system, processing and packaging diversified financial service products, and sharing clients' information.Upon building of these, the Bank could further enhance the sales promotion of her e-commercial business, so as to provide one-stop value-added solutions to the clients.Thirdly, it covers the Bank's market promotion of her intermediary business. It should be focused on integrated sales promotion surrounding her brand name, application to the existing regional economical development situation, stipulation of feasible regional positioning development strategies.Fourthly, it covers the Bank's differentiated pricing system of her intermediary business. The stipulation of feasible sales strategies include implementing diversified client promotion strategies, enhancing charging management of intermediary business, increasing intermediary business revenue, strengthening the organizational construction of intermediary business structure, improving the measuring and rewarding methods of intermediary business, building better intermediary business sales models, actively training and attracting professional people, and executing on market development with focus and avoidance of risky business strategies.Last not least, it analyzes the risk management and prevention when Chinese commercial banks operate their intermediary business, from the perspectives of risk management, controlling structure and supervisory measurement. |
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