Analysis Of China's Online Banking Development Strategy

Network-bank is a bank, which is able to build a security, convenient and friend link between the bank and its customers, in terms of inter-net and interrelated-technologies. It is a kind of a virtual counter of the bank.Since 1995 when the foundation of the first network-bank, SFNB(Security First Network Bank), network-bank has been followed with interest for its virtual, smart, high efficiency and low cost, fiercer competition that is caused by the NB. So network-bank develops swiftly. In America, where network-bank was first created, network-bank is the fastest field in the banking industry since SFNB. All leading financial institution apply technologies of internet into the bank sevice and supply network-bank services, and become the mode in the banking industry. In Europe, network-bank do the same, as if it is competing with American. In Asia, both the developed countries such as Japan and Singapore and the developed place such as Hongkong and Taiwan, and the developing countries develop their network-bank one after another.China has his network-bank in 1996 when Bank of China first creaded web site and issued information on inter-net. However, it is China Merchants Bank that first supply pay services on inter-net. The network-bank in china develop with electronic commerce and electronic government. The network-bank has been highly cared and developed rapidly all the time. Today, there are over two thousands branches of over twenty bank that possess their own web site and home-page on inter-net, and over forty branches are able to supply really network-bank services, and own more than 400 000 customers.Although its rapid development, there are a lot of weakness in the network-bank in china. It contains infrastructure problem, environment problem and technology problem of network-bank. The shortcoming in infrastructure includes the poor facilities, small transaction of electronic-commerce, non-project and being short of talent for electronic-commerce and network-bank. The environment for network-bank includes the law and regulations on EB and NB, the security of network, the honest and credit of the national, the culture and custom of the people. And the technology of network-bank involves its standards, the product that the network-bank provide, the tools of pay. All these weakness slow down the development of network-bank in china.In my opinion, facing with the tide of network-bank and more and more foreign capital emerge into china, china government should go hand in hand with its banks. The government should see what it do, set its national credit management system, perfect its law and regulations about the inter-net industry, crack down on crimes on inter-net, regulate efficiently the financial institution, in order to improve its market for network-bank. In a word, the government should found a nation-wide market for network-bank and promise its good function.The banks themselves should first form correct idea for network-bank; the second, it should have a specified and right aim and choice a right mode of developing network-bank. In its routine duties, bank should do its best to develop its technology, to train its professional talent, to bring forth new idea into the service, and carry out suitable marketing strategy.