Commercial Bank Financial Products After Assessment

With the deepening of the process of economic internalization and financialglobalization, the competition among commercial banks becomes intensified. Especially in2001when China joined the World Trade Organization, banking circles were becomingfully opening to the outside world. Consequently domestic commercial banks are facingthe impact of foreign banks and both have to compete with each other in domestic andforeign markets, which is opportunity and also challenge for our domestic commercialbanks. In one decade, our commercial banks experienced a steady development, andeventually made considerable progress in terms of amount of assets or asset quality. Withthe success of IPO by four major state-owned commercial banks, the banking industry ofchina officially entered the ranks of the advanced banks all over the world.As the competition among commercial banks becomes intensified, the traditional wayof competition basing on the amount of business and resources is more and moreincompatible with the concept of development of modern commercial banks. Thus, almostall the banks are seeking a breakthrough. Afterwards product innovation is increasinglybecoming the most direct, powerful, and effective weapon within the competition betweenbanks. All the banks have recognized finacial product innovation as the foundation ofsurvival and development.Financial product innovation, as a systems engineering, is a multi-sectoralcollaboration including several aspects, one of which, product evaluation, as the last andthe most important sector plays an important role in assessing the quality, finding theproblem, summing up the experiences and lessons and enhancing the management level.Unfortunately, by now all of the banks have not formed an index system of productevaluation even though some have made some research. In order to make the productevaluation as a comprehensive, objective, scientific and real reflection of the idea of design,R&D quality, risk management and product propagation, we designed a comprehensiveevaluation system basing on fuzzy evaluation method and results-oriented method, whichfocuses on customs, banks and markets. This system, including both quantitative andqualitative index, involves five categories which are product benefits, marketcompetitiveness, customer satisfaction, risk profile and performance indicators. Thissystem, which has been proved successful, has the versatility and practical value.