The Effects Of Circle Credit Model On SME Credit Marketing On The Basis Of Research Of MSBC Circle Credit Project

In our country, small and micro enterprises have always been facing problems in getting loans. With the rapid growth of credit business, our commercial banks are also facing problems of homogenization of competition. Traditional banking business models do matches "short, small, frequent, urgent" features of SME loans. But there still exist problems like high marketing costs, low promotion efficiency, customer loyalty and so on. So with this background, it’s important for us to discuss the status quo of SME credit business development.In this article, we compared the similarities and differences of SME credit marketing models with the combination of comparative analysis and case study. Firstly, on the basis of learning former articles, we concluded the characters and problems of SME financing as well as the fundamental theories of bank marketing. These basic theories include relationship crediting theory, industrial cluster theory, relational marketing theory, marketing mix theory. This part is the theoretical basis of this article.Secondly, considering the background of fierce competition in SME credit business, we introduced main kinds of SME credit business model. In this part, we focused on the discussion of business advantages of Circle Credit Model, such as re-transaction cost, systematic marketing, market development efficiency and so on.In the last part, with first-hand data of MinSheng Bank cluster market credit project, we discussed the feasibility of Circle Credit Model on solving problems of traditional credit models, like marketing cost, marketing efficiency, customer loyalty. In this case study, we could also find out the potential improvements of this project. We could further improve the existing Circle Credit Model from the aspect of relational marketing theory and marketing mix theory.