The Research On The Development Strategy Of Supply Chain Financial Business Of Bank Of China

Under the background of global economic integration, competition between enterprises gradually developed into the competition between supply chain steps within every enterprise. Domestic commercial bank has been following the business trends of globalization, managed to meet the overall demand for financial services of supply chain supporting business; carried out the innovation of the supply chain finance business actively; and grabbed the new commanding heights of business development. As one of the big five domestic bank, Bank of China is clearly aware of the importance of the development in supply chain supporting related business, and it is focus on exploring in the field of supply chain finance, as well as accelerating the innovation progress. Therefore, analysis and research on development status and shortages of supply chain financial business of Bank of China, as well as putting forward related strategies along the way, will help to gain positive significance and practical value for Bank of China and other commercial banks on new market in supply chain finance business development, and profit generation. In this paper, Bank of China is settled as the research object. With the theory of supply chain management and financial innovation, as well as the author’s long-term practical experience in Bank of China, this paper summarized the situation and shortages of Bank of China supply chain financial business development in recent years, pointed out the development strategies with innovating products, developing high-quality customers and optimizing the internal processes, which is in accordance with the actual situation of Bank of China. The specific research contents are as follows:First of all, the paper provided a background and related theories on implementation of supply chain financial business, and gave an introduction to main financial mode, product type, as well as both international and domestic situation of development in supply chain financial business; Secondly, the paper introduced the general information about Bank of China supply chain financial business, the six different financial products, feature of supply chain business customer, as well as the internal operation and management. The paper also pointed out that Bank of China had some deficiencies in product innovation and improvement, promotion on customers, and internal control; At the end, based on former analysis, the paper generated the idea and principle of developing supply chain financial business in Bank of China:number one strategy is to innovate financial products, including rich product structure, make up for the advance payment products, enlarge product categories, introduce third-party supply chain participants, and build up business brand reputation; number two strategy is to accelerate marketing process in high quality customers, including deep communication with VIP customers, develop relationship with small and medium-sized customers, and provide services to global customers by taking the advantage of Bank of China domestic and overseas linkage; number three strategy is to optimize the internal process and risk control, change old risk concept, take initiative to manage the risk, strengthen the parallel operation, shorten business process time, expedite the information system construction, and improve the service satisfaction level of supply chain financial business.In short, implementation of supply chain finance business will help improve the Bank of China credit business structure and customer structure. To some extent, the implementation solved the problem of financing difficulties within small and medium-sized enterprises. It also enhanced core customers’ dependence on Bank of China. At the same time, supply chain finance business reduced the asset risk of Bank of China credit extension, increased the profitability, and made it one of the important strategies in Bank of China. The development of supply chain business service in Bank of China involves not only its own efforts in operation, but also the construction of financial environment in both domestic and overseas market. Attention should be paid to improvement on legal environment, technology circumstances, financial regulation, and credibility atmosphere.