Suggestions Of Competitive Strategy And Policy For China's Internet Private Bank

After the Eighteenth National Congress of the CPC,China's financial reform getting faster.In December 16 th 2014,China's banking regulator has approved the establishment of WeBank,which is sponsored by pure private capital and at its own risk.Also,WeBank is the first bank that combined internet bank and private bank.Till August 2018,there are 17 private banks including 3 internet private banks,have been approved in China.Back then,traditional banking industry stopped high speed growing,the speed of economic growth also slowed down,credit risk rising,deposit and loan spreads narrowed,and internet financial impact increased,all of these intensified competition among financial institutions in China's banking industry.As a new established internet private bank,the choice of competitive strategy is the most important part to improve core-competitiveness in this situation.Bank A,the first internet private bank in west China,has approved in December 28 th 2016 and passed a complete accounting year.Although Bank A combined with both private bank and internet technology,compared to other big banks with long history,there is a long way to go.To be more competitive,they need to speed up the improvement and implementation of their competitive strategy.Combined with the current economic and financial situation,this paper describes the overall situation of internet private banks,deeply analyzes the internal and external environment of Bank A with different angles by using Porter's five forces model and SWOT model.Besides,on the basis of combining with the advantages and disadvantages of A bank's current development and the opportunities and challenges it faces,this paper explores the development model and strategic positioning of Bank A by flexibly using a variety of strategic analysis tools,determines the differentiation strategy and constructive suggestions for its implementation.Last but not least,hopefully this paper can provide experience and reference for the newly established internet private banks,and provide feasible suggestions for the policy environment.