Research On The Network Transformation Of A Rural Commercial Bank

There is a prevailing trend for banks to open new branches and strengthen the service range as China is adjusting to "New Normal" in economic development.These banks work on meeting customers' expectations and has managed to deliver a higher number of customized products,services and solutions to more customers.Moreover,they are speeding up digital transformation by continuously introducing new features through digital channels.Banks who keep shaping business to serve customers and continue to make progress in services gradually excel in the industry.In contrast,the A Rural Commercial Bank offers a limited range of basic financial products and services with few initiative marketing strategies and digital channels updates.As a result,this bank faces problems such as the decline in the number of customers and shrinking market shares of both deposits and loans.Under such circumstances,the A Rural Commercial Bank needs to adapt quickly or risks being left behind by its agile counterparts.To help the A Rural Commercial Bank sharpen its market edge,this research tends to explore banking branch transformation strategies.This study will firstly conduct literature review to interpret the concepts of transforming banking branches and find proper theories to support the research on the transformation strategy.Then,the author will analyze the macro and micro environment of the A Rural Commercial Bank through the PEST analysis,Porter's five forces framework and SWOT analysis,which could help fo??specific transformation goals and principles.Moreover,the author will design transformation strategies considering the function of banking branches,the organization of different service lines,the digital platform establishment,specialist staff allocation,the system for assessing the performance of employees,and the marketing plan for branches.The feasibility of this transformation strategy will be further discussed in terms of the accessibility of technology,specialists and assets for the digital innovation,and the consistency ofthe bank's core value.Combining the innovation theory with the reality of the A Rural Commercial Bank,this study proposes that branches can invest more in in-branch digital machines so that branch employees can offer customers advice on using digital tools for everyday banking needs,which could increase the effectiveness of branches.Also,more employees could focus on improving branch sales as more basic banking services could be completed through digital platforms.This study can broaden the theory and practical applications of transforming banking branches.The newly designed strategy is helpful for the A Rural Commercial Bank to reposition its traditional branch model.By taking advantage of digital innovation,banks can transform the branch network to offer banking services that are more personal,immersive,and relevant for their role as an everyday bank.Better allocation of specialist staff and increasing effectiveness help meet customers' expectations,deepen and expand the customer relationship.Furthermore,this strategy and potential future research on the application of the strategy could offer suggestions and experience on the banking branch transformation process to other banks that face similar problems.