Domestic Financial Holding Company Business Collaboration And Innovative Research

With the inevitable tendency of mixed operation in the international financial industry, the various domestic financial institutions have started their quest into this kind of operation. In reality, the pattern of financial holding companies which are not at odds with the principle of industry division and can realize the goal of comprehensiveness and versatility of financial services has become the first option in the transition of Chinese financial industry toward mixed operation. For domestic financial holding companies, the question of how to maintain the Synergy and innovation of businesses has bearing on whether or not the advantages and potentials of financial holding can be utilized and exploited to make the economy of scale and the economy of scope a reality.Financial holding companies mainly have 3 business lines, i.e. retail financial services, businesses from companies and investment banks, businesses of individual banking and financial management services. On the business platform offered by financial holding companies, there are various forms of synergy between financial services,i.e. financial interaction, synergy among business operations, information sharing, overlapping of client markets, connection among human resources, concerted efforts in financial product innovation, etc. The synergy among different types of financial services that is created by the connection of the above listed services can be summarized as the synergy from organizational shakeup, the synergy from financial interaction and the synergy from service integration. In order to seek for new profit growth pole and to build up the risk fighting capability, financial institutions ceaselessly conduct financial innovations, in the course of which the convergence and compounding of financial products and instruments from an increasing number of industries fosters the integration and penetration of services offered by different financial institutions.Financial holding companies have advantages in the integration and sharing of resources in the areas of information technology, risk management and client resources, advantages that are unparalleled for other financial institutions. After tangible and intangible sales points of the financial supermarket are established, the integrative strategic alliance conducted on this kind of platform by banks, insurance companies and security companies can offer the clients integrated financial services that are more...