The Operating Efficiency Of Retail Outlets In Nanjing Agricultural Bank

Commercial banks have always been one of the important pillars of socio-economics, and its operating efficiency can directly affect the stability and sustainability of financial development. For a long time, enterprises and large clients have been the core of the economic business in large commercial banks, so, many studies also mainly on this basis.With the rapid development of the world economy, personal investment and insurance need are growing rapidly, with ordinary people’s income and consumption levels rapidly rising. In this background, commercial banks have put more eyes on ever-wealthy individuals, and set up individual business department to carry out retail banking business in recent years, it is the hub of the activities of individual credit, because of its huge customer base and connections with almost all the financial activities. Especially since the1990s, the retail banking has grown not only in asset utilization, but also in the income composition outstandingly. With the accelerated pace of financial innovation, its importance would continue increasing. In addition to the financial innovation and improving service, the development of retail banking mainly relies on the competition on the retail business, which primarily related to the efficiency of the retail outlets. Therefore, studying on the performance of the retail outlets will help commercial banks evaluate all the retail outlets, and make appropriate strategies to adjust the allocation of resources to approach or achieve the best level of performance.This paper based on the research results of home and abroad, used both theoretical and empirical analysis methods, analyzed internal and external environment of the Agricultural Bank of China firstly to explore the affecting factors to the development of retail banks, thus giving rise to the Blue Ocean strategy which adapted to the situation of development. Secondly, using the data of various outlets of Agricultural Bank in Nanjing from2005to2007to measure their efficiency and analyzed them. The DEA method which used in the empirical analysis, not only can effectively compare the performance of different networks, but also can reflect the reasons for the difference. And the conclusion is that the factors which affected the efficiency of the retail banks are the business resource, the customer arrangement, the management of customer relation and the foundation establishment. Finally, on the basis of analyzing the performance of the Agricultural Bank in Nanjing, this paper proposed some measures to increase the networks’efficiency, from the perspective of the network classification, location, human resources, etc. These mainly included:building a marketing platform for retail outlets stratification; adjusting retail outlets functional orientation; diversifying the services; optimizing the allocation of human resources; enhancing customer satisfaction with the services of the outlets; and establishing effective evaluation of the long-term mechanism of the retail outlets.