Study On The Strategy Of Retail Business Of Changchun Rural Commercial Bank

With the gradual deepening of China’s rural reform of the financial system, the currentprovincial credit cooperatives are not suited to the development needs of the marketthroughout the country. A number of credit unions select the transition to joint-stockcommercial banks, and Changchun Rural Commercial Bank Co., Ltd.(hereinafter referred toas CCCB) is one of the credit unions restructured from original financial institutions. Afterthe reform, CCCB, due to the the clarification of authority-responsibility relationships,embarked on the road of rapid development, especially in the retail banking business(hereinafter called the retail business). It has proposed to vigorously develop a retail business,so that positive adjustment is taken in the management process. The business structure nolonger simply relies on deposits and loans, which were the only profit mode for doingbusiness, but make great efforts to strike the appropriate balance between deposits and loans.In addition, nowadays, when regulations are held to strict standards, the gap between interestrates of deposit and loan is gradually narrowing, the market orientation reform of interest rateis speeding up and the financial disinter-mediation gradually accelerates, the domesticcommercial banks have shifted their focus to the development of the retail banking market.Meanwhile, the increasing demand for financial management from domestic residentsencourages commercial banks to increase efforts to promote retail banking. As a bankrestructured from a rural cooperative, CCCB is aware that making profit simply on the interstmargin will be risky for its future, so that it actively adjusts its business structure and willdevelop the retail banking business as its future focus.Based on the theory of domestic and foreign commercial banks on the retail businessdevelopment research, this article will start from the importance of developing retail businessfor the commercial banks and demostrate the feasibility and necessity of the development ofretail business for China’s commercial banks. In this article, the methods of SWOT andMichael Porter’s Five Forces Model are adopted, and it analyzes the current status andpotential problems in retail business of CCCB and probes into its strong points andweaknesses, also its opportunities and threats in this field, and further discusses retail bankingdevelopment strategy. Finally, the strategic aim, that CCCB should take the maket into fullaccount and base its business on a perfect network to exchange information and make a name for CCCB as an influential bank in retaill business through continuous learning andinnovation as well as by means of advanced management concepts and management methods,is established. The study also proposes that, in order to achieve the goals, CCCB needs tohave a customer-centric work style, adhere to the road of wealth management, choose the pathof developing electronic business and stick to construction of talent ranks. It also discussesthe conditions that CCCB requires for development of retail business and the method toachieve the goal. The study of the development strategy for CCCB provides a useful referencefor the future development of other enterprises and for other rural commercial banks whichtransformed from credit cooperatives and would like to take the strategy of retail business.