Research On Personal Financing Products’Innovation Of Commercial Banks

Since the reform and opening up, with the improvement of the level of economic development, household wealth substantial growth, awareness and demand for finance and investment is changing. People no longer satisfied with simple hands of idle funds in the bank, eagerly awaited the emergence of a new investment way of managing money. In this context, the personal financing products came into being. The birth of personal financing products, on the one hand is the result of market demand, on the other hand is also a commercial inherent requirements of their own development. Commercial banks in order to maximize profits, the development of the personal wealth management business for commercial banks to open up a new profit growth point. Sound macroeconomic environment and financial advances in information technology, the development of innovative financial products for commercial banks personal favorable external conditions.Domestic commercial banks’ personal financing products though started late, but growing rapidly. Product innovation on income and structure, it was well welcomed by the majority of investors in the market, coupled with the unique advantages of the commercial banks on risk control and product marketing, personal financing products have a broad development prospects. It has become a new profit source for commercial banks to improve the revenue and expenditure structure. It will enhance the core competitiveness of commercial banks.On the basis of introducing the research background and significance and domestic and foreign research literature, we talk about domestic commercial banks’ personal financing products innovation in five aspects. First, from the points of commercial banks’ profit maximization requirement, the interest rate marketization and to circumvent regulation, we analyze the motivation of personal financing products innovation, and elaborate on the impact of personal financing products innovation. Second, we have an analysis of the characteristics of the market for personal financing products for China’s commercial banks. Third, analyze the status and problems and causes of China’s commercial banks’personal financing product innovation.Then, put forward corresponding countermeasures to speed up commercial banks’ personal financing product innovation.Finally, take a summary and outlook of the future development of the personal financing products.Personal financing products have a broad development prospects, but with the rapid development in the short term, there will inevitably generate some problems. Such as personal financing products homogeneity is prominent, the lower level of risk control. The existence of these problems requires commercial banks take a more in-depth exploration of the innovative ideas of personal financing products in the future development, and better manage risk.This article suggests, innovative product management and marketing strategies to improve the mechanism of product innovation management. Improve risk control level in improving the risk level of control, establish a sound risk management system, take a differentiated risk control measures, establish the bank’s internal supervision and audit mechanisms and financial business statistical analysis reporting system. At the level of strengthening product innovation and R&D capabilities, commercial banks should focus on the use of option theory in product design, try to use the modular design concept, expand the affiliate product development permissions and carefully designed products linked to the subject. In the training of highly qualified personnel, training high-quality financial account manager, building a professional personal finance team of experts and reforming the employment system.Commercial banks’ personal financing products development is the requirements of the times. Under the combined effects of a variety of factors, China’s personal financing products are able to appear and have a rapid development. Started late, but significant for commercial banks. And can be expected, commercial banks and foreign banks in personal wealth management market competition will become more intense in the future, it is high time for commercial banks to innovate personal financing products.