The Transformation Strategy Of Small And Medium-sized Brokerage Firms Under The Background Of Internet Finance

As the emerging type of business mixed by technology and finance,Internet finance brought new opportunities and challenges for the securities industry of China.Currently,China’s securities market is in the industrial growth period;meanwhile,the integrated business patterns of securities dealers are mainly traditional channel service,and the profit pattern is very single with low business efficiency.At the same time,with the severe polarization,a few large-scale securities dealers occupy the monopoly position,while many medium and small sized securities dealers lack the competiveness,which badly need to change the current situation of “small,loose,and weak” and to search for new business growth point.It is of great realistic significance for medium and small sized securities dealers and even for the whole securities industry to smoothly realize the business pattern transformation.This paper firstly applies the literature research method to review and reorganize the internet finance,company dynamic capability,and strategic transformation theory,so as to settle the theory basis.Secondly,this paper uses case study method,selects three medium and small sized securities dealers as the research samples including SINOLINK SECURITIES,SOOCHOW SECURITIES,and EASTMONEY SECURITIES,analyzes,purifies,and summarizes the common features of their business pattern transformation,to provide realistic basis for the transformation directions,developing strategies,and competitive policies of medium and small sized securities dealers under the internet finance background.The research shows that China securities industry,especially the medium and small sized securities dealers,will overall transform from “securities brokerages” to “generalized investment banks”.Transformation in five aspects must occur: first,service functions will transform from “channel service” to “integrated finance” service;second,asset structure will transform from “light asset and low leverage” to “heavy asset and high leverage”;third,business pattern will transform from “license-centric” to “customer-centric”;forth,competitive structure will transform from “scale expansion and homogeneous competition” to“business differentiation and characteristic development”;fifth,competitive measures will move toward to “Internet + finance”.Additionally,research also provides five suggestions for strategic transformation: to perfect the corporate governance structure,to strengthen risk management,to focus on business creation,to formulate reasonable strategies,and to pay attention to cultivating professional teams.