Research On The Expansion Of Retail Business By State-owned Commercial Banks

The purpose of this study is to analyze the development of the retail bankingbusiness of the state-owned commercial banks, the external environment, internalfactors, problems, and give pragmatic suggestions.This paper has the following contents: Firstly, on the basis of domestic andinternational literature review, it defines the business of retail banking, and takesCitigroup, HSBC and four major state-owned commercial banks as examples, toanalyze the development of the retail business of international banking and domesticstate-owned commercial banks. Secondly, it summarizes several external environmentof retail banking. Then we take ZJH for example, the paper analyzes the structure andperformance of the retail business of the bank, summed up the internal factors in theretail business, the problem restricting the development and the tendency. Finally, thepaper gives suggestions for the status and problems of China's state-ownedcommercial banks in retail business.Through the research, the paper gets the following conclusions: Acceleratingdevelopment and the increasing of the proportion of the retail business is a trend ofinternational and domestic banks. Level of economic development including incomelevel and structure, the degree of social progress including urbanization and residents'level of education, the legal and policy orient and technological level are the mainenvironmental factors for the development of retail banking. Banks' internal factorsincludes adequate and coordinated organizational structure, systematic knowledge andexperience, a valid payment and promotion incentives to implement the corporateculture to all staff and the systems, the bank's internationalization, and the informationfor the economic environment, industry, competitors, partners and customers. Thestate-owned commercial banks represented by ZJH have a relatively weak customerbase, innovation short-board, and internal management problems.Finally, the author introduces a few suggestions for the state-owned commercialbanks to expand the retail business: Firstly, we need systematic implementation of the"customer-centric". A clear understanding of the status and trends of the retailbusiness, construction of efficient customer relationship management systems, andculture of great importance to the maintenance of existing customers and potentialcustomers are very important. Secondly, we have to improve the accumulation ofknowledge and experience and the innovative mechanisms. Efforts should be made tobuild branch-personnel-training mechanism, knowledge and experience accumulatingplatform and grass-roots' research and feedback platform. Thirdly, we shouldrationalize the retail business management system. Rationalize the retail products'marketing, support and R&D departments, and comprehensive retail outlets andspecial retail outlets. The fourth is to build a reasonable incentive mechanism.Balance the proportion of incentive for existing customers and incrementalperformance, and balance the current interests and long-term interests, and increasethe incentive proportion for the customer experience and satisfaction. The fifth is tostrengthen the ability of information control. Construct and improve the data and decision-making platform, strengthen the ability to control information on thedomestic competitors, strengthen the collection of information of internationalbanking.