Our Country Commercial Bank Individual Financing Business Development Research

Personal finance business of commercial bank is a concentrated reflection of itscustomer-focus strategy, which has become a main approach for commercial bank toprovide differentiated zero distance service, a powerful tool to create famous brand aswell as an important measure to build up core competitiveness, and it is also a vitalpart of commercial bank’s profits and is foundation and driving force for sustainabledevelopment. However, with the full liberalization of the financial markets afterChina’s accession to the WTO, foreign-funded banks move into the mainland and startexcavating high-end clients to seize the personal finance market. Faced with such asevere situation, how could domestic commercial banks survive in the competitionand maintain its traditional advantage in retail business without being marginalized inthe personal finance business? Domestically, with substantive promotion of interestrate marketization， the traditional business pattern with scale expansion as the mainapproach, credit production as a major product and interest margin as main profitsource is running to end, domestic commercial banks have increased their attention topersonal finance business, whose market then rapidly expanded.As business continues to advance, personal finance business of commercialbanks in China develops rapidly and percentage of profit increases dramatically,which becomes an important area of commercial banks’ profit growth. The favorablestimulation of personal finance business to profit growth has gradually causeddomestic commercial banks’ concern and attention, with the marketization process ofcommercial banks, personal finance business gradually becomes main competitionarea of all large commercial banks for its low risk and high profit, all largecommercial banks introduce in and innovate personal finance business in attempt toenhance their market share. This research aims to deepen people’s understanding ofpersonal finance business, explore product innovation and fierce competition in thismarket, analyze the problems in personal finance business and provide solutions; itsmain value is to offer my little help with the development of personal finance businessand strategy transition.This paper raises the existing problems at present through the analysis of currentstatus of personal finance business in domestic commercial banks and makes a deepanalysis for the development of personal finance business by referring the experienceof SMBC and Bank of Communication which involved in related business earlier in China. It mainly consists of four parts: The first chapter is introduction; the secondchapter covers the characteristics and development trend of personal finance businessin commercial banks; the third chapter primarily processes the explanations on currentdevelopment status and issues of domestic commercial banks; the fourth chapterdiscussed the measures to develop personal finance business in domestic commercialbanks.The conclusion of this article thinks that commercial banks in China should payattention to personal finance business and promote the personal finance business bytransforming traditional service awareness, strengthening the innovation intensity offinancial product, enhancing risk control and other measures. Facing with newmacro-economic situation and increasingly market competition at home and abroad, itwill be a strategic issue for commercial banks to conduct overall planning for personalfinance business and make it bigger and stronger. Commercial banks must adhere tothe customers as the center, take the market as the guidance, and establish goodmanagement system, innovation systems, marketing systems, risk managementsystems and incentive mechanisms, so as to promote the continuous development ofpersonal finance business.