A Study On Development Strategy Of Supply Chain Finance Of Shanghai Pudong Development Bank(Tianjin Branch)

Benefit from the improvement in transportation and information technology, the cost of production and circulation reduced steadily. Moreover, instead of the conservative vertical integration, the supply chain mode becomes the mainstream of industrial organization model. Under this background, the commercial banks actively adapt to market needs, develop their financial innovation, and carry out the supply chain finance business (SCFB). There are several methods, such as using the credit of core enterprise and risk mitigants means, controlling the upstream and downstream logistics, and commanding information flow and cash flow. By implement the methods above, banks provide targeted financing, settlement, account management, risk aversion, and other financial services for the core enterprise itself and its upstream and downstream enterprises. Generally, SCFB is supposed to stabilize core enterprise’s supply chain(upstream and downstream production, distribution and sales).In addition, SCFB also solve the problem of financing difficulties for small and medium-sized enterprises, optimize the structure of commercial bank business, increase the intermediary business revenue, rich client base, and eventually realizing multi-win-win situation.Shanghai Pudong Development Bank co., LTD. (SPDB), founded in 1992, is a national shareholding commercial bank, which was founded in Shanghai. With several years’ development, the company’s unique business brand "Shanghai Pudong development investment plan" has becoming mature. There are two dimensions support the brand system, which are financial product solutions and personalized customer service plan. It is well-acknowledged that SPDB’s SCFB plays a leader role in the entire industry. Shanghai Pudong development bank Tianjin branch is located in Tianjin--the national advanced manufacturing research and development centre. Currently, "Beijing-Tianjin-Hebei" coordinated development is a hot issue in China.therefore, this article selects Shanghai Pudong development bank Tianjin branch as an example, in which it will discusses SPDB’s supply chain finance business development strategy and provide the reference for other small and medium-sized joint-stock commercial bank supply chain finance business development.The logic of this paper is as follow. First, briefly clarify the related theory about supply chain, supply chain finance and commercial bank supply chain finance business; and lay the theoretical foundation for the following analysis. Second, introduce SPDB Tianjin branch’s current situation and existing problems of supply chain finance business. On this basis, using the SWOT analysis, attentively analyze the strengths, weaknesses, opportunities and challenges of SPDB Tianjin branch’s supply chain finance business. Thirdly, by means of diverse cases, including commercial bank supply chain finance business development at domestic and abroad, provide the reference for the progress of SPDB Tianjin branch supply chain finance business. Finally, based on the above analysis, certain strategy will be offered.