Competitive Strategy Research On JRCB's Retail Banking

In recent years,the global economy suffers from a slow recovery and China's economic growth rate is gradually decreasing.Combining with the impact of interest rate liberalization,the phenomenon of financial disintermediation is more often observed,which brings unprecedented challenges to the profitability of traditional commercial banks.To stand out from fierce market competition,banks must develop and implement a well-sorted and effective competitive strategy and try their best to win more market share in retail banking.Since its establishment,J Rural Commercial Bank(JRCB)has steadily developed its traditional main business as a local financial institution and continuously increased in terms of assets.However constrained by the progress of interest rate liberalization,pressure on the overall economic environment and increasingly strict regulatory environment plus historical issues like low credit quality and unbalanced asset structure,JRCB has been facing problems like declined asset quality,decreased asset size and low profitability over the last few years.By analyzing the external environment and industry environment faced by the retail banking business of JRCB,the following external opportunities are found:high financial service demand by micro-and-small enterprises;local policy support;nation-wide accelerated reform of credit union with more supporting facilities;residents' increasing awareness of financial management;tendency towards long-term and rational investment;opportunities brought about by the development of regional economy,etc.Meanwhile the threats are:downward pressure on overall economic environment;challenges on the traditional interest rate swap model;challenges on innovation brought by internet finance;financial product homogenization;and clients'requirement of individualization and diversity.Through analyzing the internal environment of JRCB and the value chain of its retail banking business,the following internal advantages are discovered:strong self-pricing ability backed by supporting policy on interest rate;good loan quality and growth rate;large and steady customer base with high loyalty;large number of branches;and quick reaction to markets.Meanwhile the disadvantages are:outdated infrastructure;slow start of digitization;lack of diversified business with low relevance between products;high deposit deviation;high risk of centralization;low product innovation ability;and weak proactive marketing and service awareness.In view of the above analysis and external and internal factor analysis matrix,the following conclusion are drawn:JRCB currently shall implement the differentiation competition strategy which optimizes organization structure and business process,determines market position,and strengthens marketing and customer service to differentiate JRCB's retail banking from other commercial banks.This will help JRCB seize more market share and achieve sustainable growth.To ensure the successful implementation of the strategy,this dissertation will address the following strategic implementation safeguards:enhance corporate culture;optimize organization structure;strengthen human resources;refine financial approval process;and increase the level of digitization.