Development Strategies Of Online Banking In State-Owned Commercial Banks

With the advent of the Internet age, especially the development of the Electronic Commerce Industry, personal banking comes into being in the financial globalization process and its convenience, low cost, versatility and other features have attracted many users. China's state-owned commercial banks are the backbone of the banking sector, whose personal banking development has received much attention. Now, the existing model of Chinese personal banking industry is that the bank establishes the Electronic Bank sector on the basis of the traditional banking business. And because that there are the fee of personal banking if you use the personal banking business in different banks. Therefore, the personal banking business depends heavily on the traditional banking business.As the dependence of the economic system, the market concentration level of Chinese banking industry is still very high, which provides the state-owned commercial banks with the advantages to develop the traditional banking business. The state-owned commercial banks has advantages on the asset scale, number of institutions, R&D ability and reputation, which do not appear in the other types of banks. However, there are some disadvantages for state-owned commercial banks, such as ownership structure, risk level, personal banking fee and so on. This paper details the development of personal banking in the developed countries and reviews the papers focused on the personal banking. Combined with the good practice and experience of the developed countries on the personal banking, we use the latest statistics and makes a comprehensive analysis on personal banking in state-owned commercial banks using the SWOT method. Based on this analysis, we propose that in order to promote the development of the personal banking in China, we should improve the internal governance system in the bank, develop the security technology, encourage the bank to cooperate with the large state-owned enterprises and electronic commerce corporations. And the bank should provide the a wide range of personal banking services meanwhile enhance the marketing ability based on the traditional business. What's more, the regulatory authorities should formulate more laws and regulations for the personal banking to regulate the development of personal banking in China.