Research On The Problems And Countermeasures Of The Direct Banks In China’s Small And Medium-sized Commercial Banks

Recently, China’s financial sector is facing the interest rate marketization, the marketization of exchange rate and the financial deregulation。 Internet financial which integrates traditional finance and Internet has been accepted by the public gradually. With the rapid rise of the Internet financial, traditional commercial Banks gradually lost part of the market, so they need to find a new service mode urgently. Direct bank is exactly the key for the traditional commercial bank to meet the challenge of Internet financial. In September 2013, Bank of Beijing set up the first direct bank in China. As of June 2015, more than 20 direct banks had been set up. Most of them are small and medium-sized commercial banks.Commercial bank made great progress in system reform, stable operation, and prudential supervision this decade. But it should not be ignored that china’s economy are moving in the high-speed growth of the "new normal". With the accelerating interest rate marketization process, the deepening reform of the system and the rising "financial disintermediation", the commercial Bank’s traditional profit model, which is driven by the loan scale, is facing a growing challenge. These changes will force the commercial banks to seek new profit growth point. Direct bank can not only help traditional banks especially small and medium-sized banks to achieve business development, regional expansion and profit growth, thus they can participate in the Internet financial competition, but also make commercial Banks differentiation development, avoiding homogeneity competition, creating a new competition. As currently envisaged, direct bank in our country is still in its infancy. There is no successful direct bank case, contribution to the commercial bank’s income also small, in order to take market as soon as possible, some direct banks are set up in a hurry, many business are not perfect, just set up a simple framework. In general, China’s direct banks lack of independent operation mechanism, and are restricted by the traditional Banks, its brand and cultural background is influenced by traditional Banks. What is more, its customer orientation, product and service are subject to the traditional bank; China’s direct bank lack of product design innovation. There is a certain degree of homogeneity between the direct banks. Through the analysis of the impact on commercial banks cost and the revenue, and the analysis of the problems of direct bank in the development process, we can provide some help for the development of the direct bank in small and medium-sized banks.This article proposed the small and medium-sized commercial banks should take a rational view of the direct bank development issues, think if the direct bank is consistent with the development of its organization system, and do not blindly follow the trend to establish direct bank. This paper puts forward a series of countermeasures to realize the sustainable development of the direct bank in small and medium commercial banks. Firstly, direct bank should operate independently and get rid of the bondage of traditional bank, learn to use the Internet thinking and big data to win more users. Secondly, direct bank should pay more attention to product innovation; make themselves different from each other to avoid vicious competition. Thirdly, hire a professional operation team, set up more security platform and ensure the safety of the customer information and capital. Finally, direct bank should strengthen the effective propaganda. Strengthen the propaganda on the Internet, television and other media, at the same time introduce to clients all kinds of business in the direct bank through the traditional bank branch, help customers learn more about direct bank business.Generally speaking, to the small and medium-sized commercial bank, the direct bank is both an opportunity and a challenge. On one hand, the small and medium-sized commercial bank can participate in the internet financial competition, On the other hand, the development of direct banks are facing a lot of restriction. It should focus on financial product innovation, institutional innovation, cultural innovation and other aspects, the Internet is applied to the bank’s products, rather than the bank put its products to the line simply.