China's E-banking Business Development Strategies And Measures

Electronic Banking, a brand new banking model boosted by electronic technologies, especially by Internet in recent years, has produced significant influence upon traditional banking industry. Electronic Banking is continuously reshaping the current banking service, the management structure, and competition among traditional banks.Today, Electronic Banking is enjoying rapid progress in China. However, as a new kind of business that made its debut in 1999, China's Electronic Banking is facing many difficulties and issues during its development, due to unsophisticated technology, less developed credit system, and incomplete online payment system, as well as the lack of cyber regulations. The purpose of this paper has two fold: (1) to identify and analyze the issues and challenges that are currently facing China's Electronic Banking; and (2) to provide some suggestions and recommendations for future development of Electronic Banking in China.The paper has four parts. It begins with the definition of electronic banking, and a brief review of its development background, history, operating characteristics and business risks. The current development state of electronic banking, as well as an analysis from an economic perspective is also discussed in the first part. The second part focuses on the descriptions of up-to-date state of China's Electronic Banking and those important issues that have arisen during the development of Electronic Banking in China, followed by the discussions and analysis of the significant impact of Electronic Banking on China's banking industry and economy. In the next part, an overall development picture of the Electronic banking in developed countries is introduced; and some matured and successful electronic banking models are also provide from a comparative standpoint Based on these comparisons, the paper suggests a mortar & mouse electronic banking model is an appropriate strategy for today's China's banking institutions.The last part of this part is devoted to the suggestions and recommendations for future development of China's Electronic Banking. These suggestions and recommendations are provided in terms of strategic positioning, organizational management, resource allocation, product development and marketing, human resources, risk management and business environment. Finally, the paper concludes that a mortar& mouse electronic banking model is an appropriate strategy for today's China's banking institutions.As a brand new business operation model supported by advanced computer technology, Electronic Banking management can be traced to today's management and finance theories. However, the theories and practices about Electronic Banking management have not yet well developed. The industry is lack of some practical measurements and guidelines as well. Facing the global trend of financial electrification and automation, all the commercial banks in China are proactively developing their own models of Electronic Banking. With the focus on the analysis of some important issues that are currently challenging commercial banks and banking industry in China, this paper not only gives the answers to these issues but also provides the suggestions and recommendations for the future development of China's Electronic Banking.