Research On Competition Strategy Of Personal Financing Business For Bank Of China H Branch

Branch of H, Bank of China was founded in 1976, and through nearly 10 years’ development, all indicators of personal wealth management went well. With the rapid development of social economy, further improvement of market-oriented reforms of interest and gradual accelerating of financial disintermediation, the environment of banking industry in China has become increasingly competitive. In H Province, financial institutions increased year by year, and each bank strengthened financing business development to further strengthen talent team construction of personal finance business, customer resource development, and financial resources input, the competitiveness of financial management greatly improved. Under this complicated background, it’s really necessary to do research on how to choose competitive strategy for personal wealth management based on Branch of H, Bank of China. In the present paper, the author analyzed the situation in detail of the personal wealth management of Branch of H, Bank of China based on generic competitive strategies with the help of some competitive strategy analysis tools, such as macro environment analysis, industry environment analysis, SWOT and so on.The author analyzed both the inside and outside environment of the personal wealth management, advantages and disadvantages, opportunities and challenges in Branch of H, Bank of China. In the aspect of macro environment, the author focused on the strategic environment, economic environment, social environment and technical environment which the personal wealth management in Branch of H, Bank of China is faced with. In the author’s opinion, the current environment is pretty complicated and variable; social economy rapidly developed; interest rates liberalization; financial disintermediation promoted the transformation of the banking reform, China Banking Regulatory Commission is strict with personal wealth management day by day; scientific and technological level increased significantly; there are both opportunities and challenges on the personal wealth management of banking industry. In the aspect of industry environment, the author focused on the important participants on the personal wealth management market, that is, made comparison among Industrial and Commercial Bank of China, the Agricultural Bank of China, China Construction Bank, China Merchants Bank; she introduced the product feature, market positioning, competitive advantages and disadvantages in detail. She thought that the competition among industries was becoming more and more fierce; the banks put more investment into personal wealth management; the third-party finance institutions increased; the scale of internet finance rapidly promoted; and all of the above brought certain impact into personal wealth management. As for the inner resources and ability, the author focused on the product resource, clients resource, channel resources, human resources, brand resources of personal wealth management in Branch of H, Bank of China, besides, she also introduced marketing capability; customer relationship management capability; product development capability; information technology capability, and so on. Through the SWOT analysis, the author tried to find out the competitive advantages, competitive disadvantages and opportunities and challenges of personal financial management of H Branch of H, Bank of China. Based on the above analysis, she discussed the applicability of cost leadership strategy, focus strategy, differentiation strategy in Branch of H, Bank of China. And in the end, she believed that the differentiation strategy should be used to deal with the outside competition, and also be used on customer management, channel building, brand building and product creativity. To ensure the implementation of differentiation strategy, Branch of H, Bank of China should do as follows:Firstly, strengthening the wealth management building; secondly, optimizing financial assessment system; thirdly, improving the mechanism of differentiation risk management; fourthly, strengthening the cultural construction of personal wealth management; fifthly, improving the function of the system of wealth management.Under the more and more complicated both inner and outside circumstance, the present paper made research on competition strategy of Branch of H, Bank of China, which will provide the development of personal wealth management with guidance, and improve the competition of local market of personal wealth management.