Research On Finanical Innovation Of Small And Medium Enterprises Based On Sichuan Branch Of Bank Of Communications

Small and medium-sized enterprises(SMEs) have an significant position in the international economy. SMEs play an irreplaceable role in promoting economic growth, increasing employment and promoting scientific and technological progress. Today, SMEs are big in the whole size, large in population, strong in financial demand. With the government’s policy support, the financial service market aimed at SMEs brings both opportunities and challenges to commercial banks. Now, the competition among commercial banks goes onto a new stage, coming with interest rates deregulation, financial disintermediation and the development of Internet finance. Therefore, it is the trend of future development that commercial banks make overall reform, gain market share, hold the core competitiveness, establish the enterprise brand. Additionally, SMEs are one of the most important potential customers for the commercial banks’ future development. However, commercial banks have no innovative service concepts, manage extensively, supply single service, have outdated technology and run inefficiently.It also figures out the reasons for innovation in the macro view, micro view and Chinese view, which are the theory base of the research. In reference to the experience of fund-raising for SMEs at home and abroad,the government and commercial banks play essential part, which shows the necessity and feasibility of financial service innovation. These theory and experience lay a solid theoretic foundation for financial service innovation for SMEs.Take Bank of communication Sichuan branch as an example, we study the innovative practice of the branch in financial service innovation aimed at SMEs and describe the development, present situation of financial service for SMEs and problems. Combining the actual situation of Sichuan economy, we set the target of financial service innovation for SMEs. Through SWOT analysis and Porter’s Five Force analysis, we state the strengths, weaknesses, opportunities and threats in the development of Bank of Communication(Si Chuan branch). We also raise the strategy of the target, the market, the management and the service. And we have the methods of taking advantages,making use of science of technology, meeting the needs of market, totally improving management, reforming the institutional mechanism, expanding the market and creating new service. Practical and creative methods are raised to help to come up with new ideas and measures for SMEs’ financial service innovation in new economic situation. We also hope to spread our example of Bank of Communication(Si Chuan Branch) in order to promote the innovation of other commercial banks in the field and provide a reference for the government.