The Bank Of Nanjing Suzhou Branch Retail Business Strategy Study

Along with the transformation of China's economic development mode,financial reform is also constantly advancing;China's banking industry environment is undergoing profound changes.The interest rate marketization reform reduced the traditional banking interest income,the rise of Internet banking and non-bank financial institutions further relocated bank deposits,the growth of capital market aggravated “financial disintermediation" phenomenon.This series of changes forced a Chinese banking operation mode reform,from the traditional extensive growth to base on its own advantages,make full use of the scale,resources and customers to develop new business,explore new profit growth point.Currently,Chinese economic development has entered the “new normal”,economic benefit is declining,credit risk is rising,coupled with the tightening of credit policy from government platform and state owned enterprises,Corporate Banking Services which takes up a large portion of the bank income will encounter growth hindering.On the contrary,the lower the credit risk of retail business will become a buffer zone of bank performance,can be used as starting point of banking reform to compensate the profit decline of corporate banking service.Therefore,the retail market will become the new battle field for all banks.The retail banking business(also called retail financial services)mainly refers to the commercial banks to a natural person or family as the service object,provide deposit,financing,finance,securities trading,agency services,advisory commission and other types of financial services business is to provide one-stop packaged products and services of the main way of commercial banks.Divided from the perspective of accounting,including retail banking assets,liabilities and intermediary business,the main source of the retail business income interest income on the asset side and non-interest income and intermediate business fees,and liabilities of banks with relatively low rates of personal savings.Overall,the retail business has following characteristics,operating cost is high,customer liquidity is big,customer number is big but amount of money is small,those are important factors why retail business is difficult to have large growth in the past.With the decrease of technical threshold,and broken of Corporate Banking Services and retail business linkage,high input and low output business model will no longer exists,personal financial service will become the core of the retail business instead of saving,it would help banks to attract more high quality customers,to expand market share,to increase the income.The transformation of business model is both an opportunity and a challenge for commercial banks.Compared with the state-owned commercial banks and joint-stock commercial banks,the city commercial banks have their own inherent defects,such as geographical restrictions,small scale,and weak ability to resist risks.And based on the policy of local government supporting small and micro economies,city commercial banks can gain some advantages in the retail business.As a listed city commercial bank,how to build up its own ecosystem in retail business with its own advantages,how to enlarge the retail business scale,,how to optimize the structure is the issue to solve.This paper will make a brief introduction on China's retail business concept and retail market,.On the basis of analysis of the development of retail business of the bank of Nanjing,taking Suzhou branch as example make SWOT analysis,giving a clear development direction,and finally giving suggestion on the construction of the retail business proposal.