Research On Financial Product Innovation Of Commercial Banks

With the growing of the Chinese people’s wealth and the enhancing of their awareness to manage wealth, the ability to research, develop and innovate financial products has become essential in reflecting the competitive strength of a commercial bank, showing its level of innovation, as well as in attracting investors. The annual sales volume of financial products has also grown from zero to100,000billion. In the first year of its issue in2004, only127products were released, but later the pace of its development can be described as leaps and bounds. In2011alone,10,000products were issued, whose scale reached as large as11trillion yuan; the fund balance of financial products reached3.57trillion yuan, accounting for4.5%of the balance of deposits over the same period (78.6trillion yuan). The issue scale and the balance of funds of financial products all greatly exceeded those of the funds, insurance products, trusts and other asset management products. According to a survey of the depositors released in the fourth quarter of2011by the Survey and Statistics Department of the People’s Bank of China, among major means of investment, funds and financial products which accounts for22.5percent became the leading domestic investment choice for residents, excelling the investment in real estates.This paper researches and analyzes the innovation of financial products of commercial banks. The article is divided into five parts. The first section introduces the basic framework of the article. The second part sorts out documents related to commercial bank financial product innovation. Part III analyzes the motivation of financial product innovation. The fourth part is the status analysis, which is also the focus of this article. Through the analysis of the characteristics and status of the2011financial product innovation by collecting data and sorting out information, and the analysis of a classic case of the2011commercial financial product innovation, the paper draws the conclusion that the main problems of the commercial financial product innovation lie in the limit of the financial sub-industry business model and the depth of financial market development, the lack of independence of the bank’s internal financial product innovation department, the homogenization of the financial products and the lack of wealth management business supporting facilities. The fifth section discusses the innovative approaches and offers policy recommendations for financial products, which is of great practical significance.