Huaxia Bank Supply Chain Finance Business Development Strategy Research

In recent years,with the development of Chinese economy and the deepening of labor division,economic integration has become the main economic form and Chinese economy has changed dramatically.Faced with server competition,in this stage,commercial bank needs to seek growth from new core business.Therefore,sustainable development of the bank can be guaranteed after new core business being explored.Regarding offering financial service to middle and small-sized enterprises as its basic objective,supply chain finance is one of the efficient methods adopted by Hua Xia Bank to serve middle and small-sized enterprises.Supply chain finance,in general,contains three tiers of meaning.First,in the field of banking service,a professional field,it refers to the form of credit and loan issued by commercial bank.Second,it refers to the purchasing management mode of the bilateral demands based on supply chain to develop a financial product reflecting the service innovation of commercial bank.It’s a kind of service based on supply chain to offer account management,credit enhancement,assurance,and financing to the middle and small-sized enterprises both in upstream and downstream.In addition,it participates in the clearing risk of these enterprises,integrates the financial service product,and teaches these enterprises how to avoid risks.Third,from the perspective of services,the supply chain financial service of Hua Xia Bank mainly consists of three product systems including advance payment,accounts receivable,and inventory.These services are mainly used to check the warehouse,guarantee the factoring and pledge of accounts receivable,and process the business in the whole business chain.The supply chain financial service of by Hua Xia Bank lies in the primary stage.One the one hand,it’s of great potency because of the rapid growth of customer demand.On the other hand,many aspects of the product need enhancement including the range of application,internal control,and the control and prevention of risks.In order to enhance the productivity,enhance customer service,and efficiently prevent the risks,supply chain financial service of Hua Xia Bank is greatly influenced.This paper studies and discusses the development strategy of supply chain financial service of Hua Xia Bank.This paper aims to study the development principles of supply chain financial service of Hua Xia Bank with the problems and difficulties met in the process of popularizing the new service as the focal points.It tries to find out the supply chain financial service and efficient practice adapting to the development rules to guide the development of supply chain financial service of Hua Xia Bank.Meanwhile,based on the analysis and demonstration of Hua Xia Bank,supply chain financial service in theoretical layer,and business procedure,in this paper,deep analysis of the products is made after referring to objective conditions to purposeful orient the market and decide the development strategy.Starting with the detail definition in theoretical level,this paper clearly defines the concept of supply chain financial service of Hua Xia Bank and deeply analyzes supply chain financial products with Hua Xia Bank as the representative of commercial bank.After the comparison of the supply chain financial service issued by Hua Xia Bank and other banks,the deficiency of the service issued by Hua Xia Bank is pointed out and the relevant improving methods and innovation suggestions are offered.