Research On The Profit Model Transformation Of China's Community Banks

After the reality of the Internet financial baptism,most banking practitioners believe that community banks will be the mainstream trends of future entity bank.After the rough type development of community banks in the early stage,the view of community banks of each large commercial bank in our country at present stage tends to be more rational,with the function of community banks,value and so on has a more comprehensive understanding.Under the influence of industry development,market demand stimulation,competition and survival pressure,and policy factors,most commercial banks in China begin to adjust the profit model of their community banks.In order to promote the profit model transformation and development of community banks,this paper takes Minsheng Bank as an example to analyze its profit model of community banks and discuss the problems existing in the profit model of the bank,so as to provide strategic reference for the profit model transformation of China's community banks.Based on the research on the profit model of Minsheng Bank's community sub-branch in A city,it is found that the profit model of Minsheng Bank has the problems of high income ratio of interest margin,insufficient earning capacity of other businesses and low function of value-added services with special features.The cause of the above problems lies in the fact that community banks adopt the traditional bank's profit generating thinking and fail to grasp the powerful conditions of the community-related intermediate business of deposit and loan and the profit generating of symbiotic financial services.At the same time,the innovation of non-interest income business is not in place,and the ability and scale development of such business income can not be effectively explored.Banks are not well aware of their market advantages.In view of the above problems,the paper puts forward some suggestions,such as adjusting profit structure for interest deduction,innovation of symbiotic finance and customer-oriented intermediate business,cost control of basic business,development of relationship marketing and customer maintenance,and innovative design of diversified value-added services,in the hope of providing effective reference for the transformation and upgrading of China's community banks' profit model.