The Research On The Innovation Strategy Of National Joint-stock Commercial Bank Retail Products

Along with the accelerating process of interest rate marketization and the intensive interbank competition, there is an urgent need to adjust the operational structure and seek new profit growth among the national joint-stock commercial banks As one of the most important businesses of commercial banks, retail banking has become the highlights of banks’strategic transformation, with respect to its advantages, such as dispersed risk, potential growth etc. But it is an new issue to research how to develop retail banking business and lead the industry by production innovation and customers marketing. So it is necessary to research on the banking retail product innovation.This article is based on the research of national joint-stock commercial banks, with the case of China Industrial Bank(CIB). Through the analysis of China Retail Bank business development history, current situation, and challenges&opportunities of national joint-stock commercial banks retail business, this article dissects the motivation of national joint-stock commercial banks retail product innovation. After the introduction of the theoretical and practical basis of domestic and foreign banks’ retail banking product innovation, this article references their successful experience and reasonable use to the innovative practice of national joint-stock commercial banks retail products.This article introduces the innovation theories of retail banking products. Taking the CIB as an case, it introduces the innovative organization system of national joint-stock commercial banks’retail products, and elaborates National joint-stock commercial banks’ retail product innovation strategies through the significance, objectives, highlights and means of the retail banking product innovation,. This article begins from the ultimate meaning and goals of National joint-stock commercial bank retail product innovation, then clearly proposes that the customers of private bank, middle class groups and the public groups are the main groups for national shareholding commercial banks through comparing the advantages and disadvantage of retail business of large-scale commercial banks, city commercial bank, rural financial institution, Postal Savings Bank of China, based on the "2-8Theory" and the "Long Tail Theory". Based on the above, this article analyzes the problem of how to create innovative framework for liabilities, assets, wealth management and platform product according to the needs of target customers and client behavior, with the case of CIB to demonstrate this specifically. This article has realistic referencing meaning for the transformation and upgrading of national joint-stock commercial bank retailing business, as well as for the speeding up product innovation and enhancing the market competitiveness of retail banking.