Study On Strategies Of Development Of Individual Customer Business In J Branch, China Construction Bank

Nowadays, personal finance, in home large commercial banks, has beenregarded as one of pillar business to most extent, which is in the fierce situation ofcompetition. China Construction Bank(CCB) has formulated a set of developmentstrategy on personal finance business, which is generalized as “customer centered,classic service provision, and financial innovation enhancement, brand creation, andvalue-creation ability elevation, aiming to market share promotion by years and theestablishment of advantageous and leading stage in competitor market”. However, for7years, the pace of development in the personal finance has not been much fasterthan its competitors, and also the competitive edge or leading status has not beenestablished among the market as former expected from its strategy. Meanwhile theloyalty to the bank from personal customers has not been higher than its marketrivals.China Construction Bank of J, as directly subordinated to CCB, the situation ofdevelopment in personal finance is similar to the whole CCB system’s. Under thecircumstance of no dramatic transformation in the strategy of personal financebusiness, J Branch apparently cannot rapidly set competitive advantage in the marketif continues keeping the pace with the headquarters to promote the business.Furthermore, owing to highly controlled by the headquarters on product R&D andservice innovation, also unavailable to put more resources to the field from J branch,starting from strategies on personal customer business, it is a necessary choice,in line with local conditions, to take strategies as more scientific and effective customerdivide, choices and development for enhancing core competitions in personal financebusiness.The paper, on basis of summarizing the condition of personal customer business,analyzes the problems of the business strategy, and points out to the rough divide inthe standard of personal customers, which cannot adapt to the need of refinemanagement. The paper also mentions the inflexibility of strategy of personalcustomer business, especially the VIP who is constituted of rich customers has notbeen fully regarded; Moreover, the service system to personal customers is not perfectand strong in competitions. The paper analyzes the circumstances which the businessof J branch is facing to, and also the market trend. By comparison on data, the paperillustrates the inner advantages. Furthermore, J branch has the condition to adjust thebusiness strategy to a new one as combined with its own reality when carrying out theheadquarters’strategy. The paper concludes that J branch is recommended furtherdivide of customer groups, and it put forward a new divide standard of customerstructure, which adjusts former4portions to5portions on customer groups and alsomakes a separate definition in customers whose asset under management(AUM) isbetween3million to5million. The paper also give improved suggestions onavailable strategy of the business and adjusted recommendations on expansion ofdifferent customer groups.Especially, it aims to widen the VIP group in the light ofprivate customers’ strategy. The paper refers to the measures of perfection ofmarketing and service systems: revolving different core objectives to adjust to keyservice objects through different institutions, layers and channels; and implementingdifferential marketing and service strategies; enhancing product and serviceinnovations to improve and optimize flow path so as to provide favorable and rapid service; and taking the transformation to create flagship outlets, boutique outlets andmulti-functional outlets in order to elevate customer experience; promoting thedevelopment of self-service and electronic banking channels to offer customersbroader business platforms; and fostering and upgrading assets growth for youthcustomers. It is suggested that the measures of safeguard to carry out personalcustomer strategy in J branch: enhancing risk management, and emphasizing humanresources management and training for customer managers, help increase financialinput and enhance IT support, and perfect regulation and assessment mechanism.