Development Research Of Community Bank Of Huishang Bank In Hefei

With the rapid development of interest rates liberalization and internet finance, domestic banks are facing two shocks. HuiShang bank also explores new development road in this circumstances. In 2013, the Industrial bank opened development model of community banks, since then, community banks develop fast. From 2014, HuiShang bank launched community sub-branch banks project. In September 1,2015, HuiShang bank established two community banks in Hefei. But there are many problems from establishment. It is meaningful in practice and theory to explore problems and tactics.In theory, through literature review part, we summarize current research. At first, we summarize the definition of community banks. There is no uniform standard to define community banks, in the current literatures, researchers define community banks from the perspective of asset size, regionalism, property right structure, market positioning, business type. Domestic researchers define community banks from the perspective of service object, mainly individual household, resident, middle and small-sized enterprises. It is because the service of community banks is used to solve the financing difficulty of small and medium-sized enterprises, meet the needs of individual household, resident, middle and small-sized enterprises. Secondly, we summarize the characteristics of community banks. Compared with large-scale commercial banks, community banks have these advantages:community banks can get more customer information, higher efficiency of operation, advantages in relational credit business, low operating costs.In the section of the necessity of developing community banks for HuiShang bank, we do the analysis from four perspectives. First, it is the need of business transformation. Through the developing of community banks, HuiShang bank is answerable for interest rate liberalization and internet finance, at the same time, it is the need of developing financial product differentiation, comprehensive grasp of customer information to realize precision marketing. Second, it is the need to fulfill financial policy. The China banking regulatory committee emphasizes that commercial banks should extend financial services to realize inclusive finance state. Developing community banks is the practice of supporting middle and small-sized enterprises. Third, it has strategic value. Community banks are small in scale, flexible in management, and it can extend in low cost and develop fast. Fourth, it can meet the needs of vast community resides. With the improvement of people’s living standard and the rapid development of economy, for community resides, there is more and more need of financial services. Community banks can fill the gap of differential financial services.In the section of the development status of HuiShang bank in Hefei district, we do the research from the perspective of development advantage analysis and development problem analysis. Development advantages include:brand impact from localization advantages, cooperative relationship with Hefei government and institutions; cooperation with Vanke-the largest estate agent in the country promotes the financial services of community banks; there is a group of young high-quality employees in HuiShang bank. Development problems include:positioning is not clear, imperfections of financial service system, single marketing mode and lack of innovation, old-fashioned hardware and facilities, policy risk. Opportunities and risks coexist, for HuiShang bank, there are still many problems to be solved to develop community banks.In the section of experience reference of developing community sub-branch banks, this research does the analysis of Wells Fargo & Company and Umpqua Bank in the United States, domestic the Industrial bank and Minsheng bank. Wells Fargo & Company is famous for community banks, and it has advantages in locations, E-bank systems, risk control. Umpqua Bank has advantages in innovative marketing. The Industrial bank investigates surrounding environments and target customers before establishing community sub-branch banks. Minsheng bank does internet big data analysis, analyzes and mines residential customers, then provides differential products and personalized services.In the section of tactics and suggestions of developing community banks for HuiShang bank, we analyze from the perspective of strategic layout, branch extension, employees in community sub-branch banks, marketing strategy and risk control. First is the strategic layout, HuiShang bank should do the synchronized advancement in both online and offline channels, build sustainable development mode. Second is branch extension, from the perspective of site selection and hardware facilities equipment. Third is the employee in community sub-branch banks. Employees are the direct practitioners of development strategy, staff quality is vital for the development of community sub-branch banks, so training and quality of employees should be considered. Fourth is the suggestion about risk control.