| In Chinese Financial market, four major commercial banks have been controlling half of the market for a long time, and have kept the growth rate in double digits. Since 2015, financial products led by "YuEBao" have forced the attention of the commercial banks, and as a result, more and more online financial businesses have emerged to follow the suit of the financial tycoon BAT to take on the road of commercial bank transformation. Consequently, online finance starts to have great impact on the various fields of traditional financial businesses. High-efficiency fast transaction online payment platforms, rich formats of financial products, flexible convenient P2P and collective fund-raising modes, live interaction Web channels, and drastically-improved innovative client experiences have constantly stimulated financial need and Web loyalty of the clients.Under the situations of forever-high business running costs, narrowing profit space, weakened policy preferences, multiple inner and outside factors have awakened the state-owned commercial banks to realize that clients, having more financial product options, may stop to come to the commercial bank branches to conduct businesses, and the financial market has become the market of the buyers. In effect, commercial banks start to initiate self-reforms, seeking management transformation development with steadfast wills.This article lays the basis on the theories of Competitive Five Powers, client capital management theories, and flow reconstruction theories. Taking a secondary branch commercial bank as case, the article has summarizes three aspects of profound influence of online finance on commercial banks. The first being the serious loss of clients, mainly appearing as the weak increase of effective client digits and deep reduction of the branch client flow rate due to client flow redistribution. The services and products of the traditional commercial banks often induce negative client experiences and increases complaining rates. The second aspect of influence shows in the weakening of the intermediary functions. Third-party payment platforms of the online financial firms, P2P, and collective fund-raising platforms are standing out abruptly, multiple-direction financial transaction products are turning up without ending, satisfying the financial needs of different types of clients, particularly those long-tail clients, who no longer need the bank to solve their problems. Thirdly, due to the limitations set by credit and profit policies, product competitiveness is lowered for commercial banks, who could not meet the financial market needs flexibly as the online financial businesses. Commercial bank products cannot keep up with the market development and are destined to be tided out by the market.The following part of the essay uses the Competitive Five Power theory to analyze the environment and competitive situations of the bank in question and raises the different advantages and disadvantages of the operation reform for commercial banks. To conclude, the essay proposes to lift the confinements for commercial bank transformation and allow them to break through the traditional business operation modes and embark on online financial development. Objecting to better serve the substantial economy in accordance with the operation ideology of "clients as the center; market as the orientation", the essay recommends the following solutions. The first solution is to promote client capital management service through in-depth analysis of the client financial needs so as to take advantage of the big data to genuinely solve the client needs and at the same time keep the transactions from the precarious risks. The article also suggests establishing client stratification safeguard mechanisms, and developing and maximizing excellent resource efficacy. Secondly, commercial banks need to optimize and standardize the branch service flows, rebuild the branch standard flows, and standardizes the branch flow for each working position. Thirdly, the commercial banks need to actively implement mobile finance innovation strategies, and intelligentize the branches to provide online and offline integrated services, so as to provide the clients with more beneficial experience products and environment, and make full use of the essential functions of the traditional finance systems. |
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