An Analysis Of Small Loans Marketing Tactics In Postal Savings Bank Of China

Postal Savings Bank of China Co., Ltd. was founded in March, 2007 and was converted into Postal Savings Bank of China Incorporated Company in January, 2012 with the agreement of State Council and the approval of China Banking Regulatory Commission. Until now, Postal Savings Bank of China owns more than 39,000 banking outlets with assets reaching at 5.58 trillion which makes Postal Savings Bank of China ranks the seventh all over the China. Microcredit or small loans or petty loans which are viewed as one kind of special financial act have not only been applied in many counties all over the world, but also become an important part of China finance at present with different purposes and in different ways. Nowadays, China economy is experiencing the transformation, so the economic environment is extremely complicated. Under this situation, the small loans in China also face unprecedented development opportunity, difficulties and risks. The practice of small loans can be traced to 1990 s. At that time, the major two institutions that operated small loans were credit union and small loans company, but these small loans institutions developed too slowly. On one hand, the traditional institutions like credit union could not meet the need of vast small and medium companies’ owners and rural breeding and planting landlords. On the other hand, small loans companies and other organizations such as investment and guarantee companies were not able to function in small loans financial service formally because they had no legal right or were not accepted by social and official members. The small loans business in Postal Savings Bank of China was started in May, 2008. Since then, the small loans business has been viewed as strategic business which has both attractive benefits and strong product competitiveness and high risk. In this paper, the author analyzes the small loans business in Postal Savings Bank of China under the instruction of SWOT theory and studies its marketing tactics relatively comprehensively by making research and survey of markets, pointing out that the small loans business is the strategic business which Postal Savings Bank of China must stick to and it must highlight its own advantages to build a sustainable development way by adopting differentiation strategy. Postal Savings Bank of China has to develop its small loans business firmly as the strategy, grasp market opportunities, amplify its advantages, adopt active and aggressive marketing tactics and differentiate itself as the sustainable development way in order to grow up in extremely fierce competition and occupy its position in the market.