Citic Bank Small Micro Enterprise Financing Service Case Analysis

Through the use of economic means, taxing, financing, and etc. methods, the nationcurrently is hoping to guide small and micro businesses get on track for healthydevelopment. In reality, however, the solution to the most pressing issue for thedevelopment, is still in the exploratory stage before any breakthrough has been obtained.As the most direct financial entity, the commercial banks are rightfully to assume thissocial responsibility, by providing additional assistance and support to the small and microbusinesses. However, due to business regulations, loan risks, and service mentalities, thecommercial banks tend to shut their doors to this type of customers.This paper begins by presenting the financial needs of small and micro businesses,discusses the areas of enterprise, commercial bank, and state support policies to identifythe cause of financing difficulties; using the commercial bank as a problem solving entity,analyzes financing methodology transformation, operation management adjustment, andoptimization of internal structure, to suggest concrete measures for improving small andmicro businesses’ corporate finance. And as a theoretical guidance and empirical support,CITIC Bank Guangzhou Branch conducted case studies on Guangzhou Hualin Jade,focused on financing services; detailed discussion is given to the background,methodology, procedure, and execution in regards to professional market characteristics,management styles, and financing habits. The use of empirical data obtained by the surveypractice with the lessons learned from the past, contributes to CITIC Bank GuangzhouBranch’s development in the next phase of the providing quality financial services to tosmall and micro businesses.Although CITIC Bank Guangzhou Branch currently maintained rapid growth, andquality of loans also favorable, in providing financing service to small and micro business,but its business development is unbalanced with respect to regional development, lack ofproduct selections and market competitiveness, marketing organization structuresub-optimized, lack of assessment for its dedicated team and staff, and many otherdeficiencies. In the last part of this paper, combined with the previous discussion, itsummarize practical methodologies to improve financing small and micro business services, and reflects the experience obtained from the case study in Guangzhou HualinJade, offering suggestion for CITIC Bank Guangzhou Branch to grow small and microbusinesses, in the areas of controlling financing risk, lowering financing cost, andimproving financing revenue, respectively.