Analysis And Strategy Of International Settlement Products Of The Bank A

The outbreak of the global financial crisis in 2008 has profoundly changed the pattern of growth of the world economy.China's economic growth has slowed sharply since the global financial crisis.China's banking sector is adapting to a more moderate growth,which many describe as the ‘new normal '.The Chinese state-owned banks are actively restructuring themselves,through increasing the resources,professional research and marketing of off-balance sheet business,especially the international trade settlement sector,in order to increase its own market share and profits.The international service sector in banks is highly specialized.Paperwork preparation has a high technical threshold that heavily relies on the experience and knowledge of banking professionals.Compared to other services,the fund occupancy of international service enjoys lower risk,shorter duration and can generate stable service fees.In the meantime,forces such as the global economic trend,fast-developing technologies,changing needs of the clients and fierce competitions always shape and reshape the market.In order to maintain the current market share and the profit growth,Chinese state-owned banks must take preemptive moves by studying,researching and reforming the traditional settlement products,including the procedure,risk management,system modules,sales and marketing,and personnel training.Furthermore,they also need to design and deliver a number of innovative trade settlement products to their clients,such as BPO and electronic delivery of documents.The paper has five parts.Part One will introduce the background and significance of the research.With the development of globalization,economies are more and more connected.Increasingly close economic ties among countries create a strong need for trade settlement by both the exporting and importing entities.Traditional settlement products now become less attractive.In today's world where the ever-changing technology has changed everything,it is critical to provide customers with more secured and convenient settlement tools,thus there is an increasing demand for innovative trade settlement products.Domestic and foreign scholars at present mainly focus on more matured traditional settlement products that have been in place for long time,such as remittance,collection and letters of credit.There are ample cases and well developed international conventions to support such studies,plus many jurisprudence and court judgments in different nations.For more innovative settlement tools such as BPO and electronic delivery of documents,however,few studies have been done,because not only those tools are fairly new and precedents are in scarcity,but also the related conventions and official interpretations are difficult to locate.Combined they seriously impede the research of this area.Part Two is a detailed analysis and comparison of international trade products between the bank A and the Bank of China.Part Three will examine the Strengths/ Weaknesses/ Opportunities/ Threats of the international trade settlement products of the bank A.There are a number of government supported campaigns,such as ‘The Belt and Road Initiative',which will provide many opportunities for the bank A's development.For the past five years,there has been a rapid increase in China's export and import sector,the momentum of which will not continue in the years ahead.Many Chinese trade companies need to move up the value chain.The Chinese state-owned banks can reap the benefits after they overcome different challenges,such as competition from Financial Technology Companies,regulatory issues and improving service and products.Part Four will focus on the strategy for improving traditional products,including measures to improve IT performance,encourage personnel excellence and decrease the risks,etc.The last part will focus on the strategy for innovating settlement products for bank A,on one hand,by introducing the newly-developed innovative product: BPO and electronic delivery of documents,which aim to help the trade settlement between the importer and exporter be swifter,automatic and money saving.On the other hand,by designing a combination of two or more products,which aim to maximize their advantages and strengths.In short,the paper aims to provide insights and views related to the development and marketing of traditional and innovative products for the management team of bank A for their decision-making.