The Study Of Development Modes Of Small-Middle Sized Banks Based On Service Outsourcing

Small and Medium-Sized banks provide a variety of specialization and features finance services for small and medium-sized enterprise and lots of citizen. So, small and medium-sized banks compensate for the domestic financial blank and be the indispensable important parts of China’s financial markets. It enriched our financial market; broke the monopoly situation made by state-owned banks and increased the financial market competitiveness. If it develops healthy and orderly, the stability and speed of our country’s financial market will be promoted.Recently, service outsourcing is developing quickly in whole world. The service outsourcing is the deepening development of division of production. Its direct effect is to improve efficiency. Service outsourcings providers can focus advantages for its core business or improve own business process by outsourcing the business at which it is not good. The provider can keep and prove its core competitiveness by outsourcing. The contractor can participate in industrial division by undertake the outsourcing business. At the same time, the contractor can seizes the market share and build competitive position.This thesis is based on large number of investigation. It connects service and the development modes of small and medium-sized bank. It considers that the service outsourcing would be an important strategy for small and medium-sized bank who want to improve core competitiveness. It analyses problems into two aspects:the small and medium-sized bank can be outsourcing provider and the contractor. The thesis includes five parts. Firstly, it compares the development status of China and other countries in order to analyze small and medium-sized bank’s dilemma in our country. Secondly, based on financial environment, advantages of small and medium-sized bank and situation of the competitors, the thesis points out that the small and medium-sized banks of China has to develop in different ways from state-owned banks. The small and medium-sized banks have to be more characteristic and specialized. Thirdly, it analyzes the situation that small and medium-sized banks outsource some business. In this situation, preparation of outsourcing and communication with the contractors are both important problems for small and medium-sized banks. These two factors will impact the result of service outsourcing. So the thesis suggests "six-step process" for preparation of outsourcing. Than, combining case analysis, the thesis points out some corresponding proposals for reform. This thesis analyzes the situation that small and medium-sized bank are undertaking some outsourcing business. In this situation, small and medium bank can cooperate with insurance companies and foreign banks, so that it will widen funding sources. The conclusion of this thesis is that service outsourcing would be an effective means of development mode reform of small and medium-sized bank. Also it will prove core competitiveness for lots of small and medium-sized bank in our country.