The Business Strategy Of The Third Party Financial Company

With the reform and opening policy, it brings the sustainable development ofnational economy and the innovation of national income distribution system. Theaverage income of Chinese residents increases significantly, and financial needs isrising as well. But the development of financial market in China is serious lag. Theresidents’ financial management level is uneven, especially along with the explosiveexpansion of the trust industry in recent years. The market is inundated with manyspotty kinds of financial products, which brings great troubles to the investors withweek investment experience when selecting related products. Based on this situation,the third-party financing company has been sadly arisen in the market with thedevelopment of trust and grown rapidly within a few years, which has an importantplace in the financial market. A group of third-party financing companies with largebusiness scope and rapid development have sprung up. But after several years’development, these companies mentioned above have appeared a certain degree ofdifferentiation, and encountered many complex problems in the process of thedevelopment. They got into the bottleneck of business development gradually.Therefore, it’s an urgent topic to study that how the third-party financing institutionsshould choose the business strategy.This article applies the method of case analysis, with A Company as the researchobject. It refers to the development experience of many leading and mature third-partyfinancing companies from domestic and overseas (i.e. NOAH, MyFP, Howbuy Fund).The analysis is mainly about the operation mode of these third-party financingcompanies in the market. This article has studied the choice of A Company’sthird-party financing business strategy. According to the analysis in the article, thethird-party financing business in our country is still in the initial stage at present. Theprofit model is relatively single, with many other problems such as the unclear industrystandard, uneven practitioners’ quality level, blanked regulatory, missing law regulations, and so on. Based on the article, A Company should combine with itselfadvantages and disadvantages, opportunities and challenges to choose the businessstrategy. A Company should absorb the development experience from domestic andoverseas outstanding third-party financing companies. It should improve itscompetitive and industry leading advantage by expanding the business scope, openingup new profit model, and improving service levels. Proposed by the article, thethird-party financing companies in our country should draw lessons from theexperience of foreign mature third-party financing industry, to develop monolithicindustry system and formulate clear industry standards with perfect legal regulations.Thus they could remain the sustainable and healthy development.The analysis and conclusions of this article will provide helpful enlightenment tothe other similar third-party financing companies about the business strategy choice.