Research In Bank Competition Positioning And Its Implement Path Based-on Wisdom Finance For BOC

Facing challenges from the rapid development of Internet Finance, couldcommercial banks still be able to rest easy? As products and services are becomingincreasingly homogenized, competition among commercial banks is heating up.Could commercial banks be able to withstand temptation from huge ‘blue ocean’SME market? Today, China’s SMEs are still suffering from the lack of financingchannels, whether Wisdom Finance is able to provide perfect solutions forcommercial bank?With the fast development of IT technology and internet, wisdom finance hasbecome a trend in financial industry. The new generation market of wisdom finance,which is represented by the third party payment, internet wealth management andinternet direct loan, is growing rapidly. The huge market of internet finance will be ablue ocean for commercial banks. Nowadays, more and more commercial banks haverealized the power of internet and e-banking and start to develop their own internetfinance business model.On the other hand, Hu Jintao’s report at18th Party Congress has pointed out thatsmall-medium enterprises and small-micro enterprises play a significant role inpromoting economic development of our country. However, due to the influence ofthe global economy and the problems of SMEs themselves, such as small in size,weak in strength, irregular in management and lack of financing channels, the survivaland development of China’s SMEs has become more difficult.Hu Jintao’s report makes it clear that “Support development of small and microbusinesses, especially small and micro science and technology companies.” Theexecutive meeting of the State Council held on July24has announced ‘Six newpolicies’ to support enterprises providing comprehensive services for foreign trade tooffer financing, customs clearance and tax rebate for small-and medium-sized privateenterprises, which allowed Financial institutions to provide financing service to SMEsThe difficulty in financing suffered by SMEs is mainly caused by their uncertainrisks and high costs of finance. Because of their small size, poor management andlack of transparency in financial reporting etc, China’s SMEs can hardly meet banks’requirements from risk management perspective. On the other hand, the bank isunable to bear the high cost of traditional business operation model. With constant innovation in technology and business model, internet finance is showing itsadvantage and presents a good way to solve the financing problems on SMEs.Based on researches on current situation of the wisdom finance and future trend,combined with wisdom finance strategy and SME strategy of Bank of China, thisarticle analyzes the importance of wisdom finance to today’s domestic commercialbanks. In this paper, the empirical analysis on Small-micro Enterprise Service Model(N+1+N model) developed by BOC Shenzhen Branch is applied to illustrate thecharacteristics and advantages of wisdom finance.Wisdom finance will be able helpbanks to control cash flow, logistics, information flow associated with SEMs businessoperation, to reduce risks and cost and finally to provide a perfect financing solutionfor SEMs。...