The Choice Of XMbank SMECredit Business Operation Model

Differences in management is the only way for the development of urban commercial banks, and SME (small-micro enterprise) credit as a business to nurture customers, optimize the asset structure, disperse credit risk, improve income level, is the way that urban commercial banks to achieve differences in management.In this paper, there is a selective analysis on the XM bank’s internal and external environment based on the history and current situation of XM bank, proposing a point that XM bank is facing opportunities and challenges, and on this basis, proposing a " differentiation is the only way for the development of urban commercial banks " point of view. And from the necessity and feasibility of the two aspects, it explains why the XM bank should develop SME credit. Through the analysis of the current situation and existing problems of SME credit business, combined with four typical commercial banks’ successful experience of SME credit business, it focuses on the business model of organizational structure, products systems, guaranty style, marketing models and other key issues and finally concludes with an advice for improvement of SME credit model in the XM bank.This paper proposes to build the micro-credit business model which the difference is the core. Through further market segments and identifying target customers, develop products and services both meet the financial needs of SME and the XM bank business orientation, build a high-quality, efficient production of SME credit lines to reduce operating costs. In the other hand, through the establishment of customer screening mechanisms and hierarchical management mechanism, run such loans as the levy system and cross-validation trial separation techniques through the whole process of SME credit, to control credit risk costs. In the huge market demanding for SME credits, controlling operating costs and credit risk costs will achieve the sustainable development of SME credits.