A Research On The Homogenization And Differentiation Of Commercial Banking Financial Products Of China

As resident’s disposable income increases and commercial banks of China underthe pressure to improve the intermediary business revenue, the banking financialproducts which originated in western countries were developed very rapidly in China.This innovative business has contributed a lot not only to the preservation andappreciation of resident’s property, but also to the banks to increase profit sources.However, this financial products offered by commercial banks faced the problemof a high degree of homogeneity on the aspects such as income approach, underlyingassets, expected yield, term structure, the issue of currency, product design and soforth. This homogeneity is not conducive to the healthy development of China’sfinancial markets or meeting the growing financial needs of residents.Firstly, this paper reviewed and summarized the findings of bank financialproducts and defined the issues to be studied. Upon this basis, we analyzed theproblem of homogenization throughout data processing and modeling. Then, wefocused on the analysis of characteristics, causes and negative effects of the financialproducts and established the Hotelling model based on which we proposed financialproduct differentiation strategy development. Finally, we proposed recommendationsnot only from the macro-level financial order reforms but also from the micro-levelbanking operations.This thesis consists of five parts:The first part introduces the background of the research and the significance ofthe topic; also, it includes the research ideas and literature review.The second part introduces the features causes and effects of banking financialproducts.The third part introduces the Hotelling model to describe the homogenization ofbanking financial products practically. The fourth part is the conclusions and suggestions. Besides, I also analyzed thedifferentiation strategy of China’s financial products.