Research On Competitive Strategy Of Retail Credit Business In Y Branch Of Postal Savings Bank Of China

Under the background of interest rate marketization,online financing,and intensified peer competition,the profit model and development center of traditional banking industry have constantly transferred to retail business.Retail credit,as an important component of retail business,has become the most important part of the banking industry.According to Boston Consulting Group's latest research report,said retail credit revenue from China's banking sector would reach 2 trillion RMB by 2020.In the face of such a vast market in the blue sea,banks have been scrambling for a long-term layout.In this paper,the Y branch of Postal Savings Bank of China is selected as an individual case to study its retail credit competition strategy.Postal Savings Bank of China,a newly established commercial bank,has made retail banking a strategic location for enterprises since its inception.It is the core business objective of it to determine the competitive strategy of retail credit,gain a place and raise the market share of retail credit.As a secondary branch(local branch)of the postal savings bank of China,it is required to fully study the internal and external environment of the bank under the strategic objectives of the headquarters and implement the strategy of retail credit competition according to local conditions.This paper chooses the bank in Y city of PSBC as research subject,and firstly it analyzes the status quo of its retail credit market by comparing the data of the financial institutions of the local banking sector,researching on automobile finance,Internet finance and non-governmental lending market and summarizing the basic situation of retail credit is summarized from four aspects such as business,product,organization and personnel.Secondly,the external macro environment of the research object is analyzed by using the PEST model,and its industry environment is analyzed by(Porter's Five Forces Model.Then it sums up external environment of the retail credit of the branch,including external macro environment and industry environment by using VRIO tools.It is concluded that the Y city branch has a strong competitiveness in brand,channel and customer.And it has an equal position in organizational capacity,product resources,scientific and technological resources,financial and marketing capabilities with competitors.Furthermore,it has a competitive disadvantage in Human Resources,which is a need to focus more attention and input on this resource.Thirdly,through the use of SWOT analysis tools,the research of Y city branch has advantages in customer group,credit funds,product types and brands while disadvantage in marketing ability,personnel quality and asset quality.And the bank is faced with the opportunity of economic transformation of regional economy,favorable policies from government and administrative policy to tighten from other banks,the challenge of competition,Internet finance,interest rate market and financial company competition.Therefore,the bank needs to implement a strategy of SO and ST in the short-term while ST and WO in the long-term.The company should make up for our own short board and deal with the competition pressure of the industry.Finally,on the basis of full argument,this paper puts forward a proposal of hybrid strategy through analyzing the key points from strategy positioning,industry circle and role orientation to choose the differentiation strategy in the city market,and a single-minded strategy in the rural market.It also puts forward suggestions on how to implement the retail credit strategy in terms of organization,marketing,manpower,operation,product and risk control.