A Case Study On Community Banks Optimization Of Rural Small And Medium-sized Commercial Banks

For the last several years, the urban-rural dualistic economic structure and the financial restraint in rural areas are the outstanding issues of our country’s economic development. Rural small-medium commercial banks play an influential role in the financial resources configuration.But with the further reform of the financial market and the change of competition pattern, the small and medium-sized banks face growing pressure of competition. Online finance and e-commerce make customer demands and payments change greatly, which forces the reform and transformation of small and medium banks. Community banks, one concept introduced from abroad, provide financial services to farmers, communities and small and micro businesses. Due to the advantages of network, information and cost, community banks are favored by many kinds of commercial banks.Based on the research of the domestic and international literatures, community bank’s theories and practical experiences both here and abroad, the paper explores the opportunities and challenges of setting up community banks for medium-sized banks and gives optimization measures, taking Rural Commercial Bank of YC as an example.Using successful experiences on Wells Fargo and domestic community banks to study the challenges setting up community banks for Rural Commercial Bank of YC, this paper makes the case analysis and proposes optimizations based on the problems existing as the breakthrough point. Firstly, it analyzes the residents’ inancial requirements in YC and Rural Commercial Bank of YC’s market share by questionnaire survey, and then carry on the customer orientation and business orientation by two-dimensional model of "customer attractiveness-bank competitiveness ". Secondly, combined with the existing network layout evaluation results, this paper explore the method of selecting commercial bank network and improving network efficiency. Thirdly, according to customer requirements to build financial business services systems for farmers, financial and consumer groups and business circles to improve customer satisfaction. Finally, the paper discusses on the support and guarantee of community banks in the following four parts:staffing, performance management, risk prevention and system support.