An Application Of STP Theory To Business Transformation Of Wholesaling Banking Of Tianshui Branch, China Construction Bank

After the1978economic reform, four large-scale state-owned commercial banks including the Industrial and Commercial Bank of China, Bank of China, Agricultural bank of China, and China Construction Bank, have experienced substantial reforms of the newly establishment, transition to specialized banks, transition of commercial banks, and transition to joint-stock commercial banks. Accompanied by the deepening of financial system reform and the market openness to foreign investors, the four large-scale state-owned commercial banks are confronting the competition from both foreign banks and domestic small-and medium-scale joint-stock commercial banks. In particular, regarding wholesale banking, the four large-scale state-owned commercial banks are facing fierce competition.Based on the analysis of current situation and prospects of wholesale banking in china, this study argues that wholesale banking would be the growth engine of banking business in future. Accompanied by the market maturity of conventional wholesale banking (ordinary loans) and the necessity to diversify income sources, many banks have changed the focus of their business from wholesale banking to retail banking; however, the wholesale banking business will still be the most important business for the Chinese commercial banks. Particularly, in Northwestern underdeveloped regions, the expansion of wholesale banking business is especially important.In the meantime, this study investigates the transition model of wholesale banking business of commercial banks in underdeveloped regions, using the Tianshui Branch, China Construction Bank as a case study. The analysis found that, in the under-developed regions, the expansion of wholesale banking business should pay attention to the regional economic development plan, and emphasize on the infrastructure construction projects, and the industrial sectors supported by the government as well as the small-and medium-scale enterprises with growth potential. Finally, this study proposes a framework to apply STP theory to the transformation of wholesale banking business in the Tianshui Branch. China Construction Bank. From the practices of local branches of national commercial banks. this study aims to provide a reference about how to promote marketing strategy in wholesale banking business.