Analysis On The Strategy And Path Of Brokerage Business Transformation Of Small And Medium-sized Securities Firms Under The Background Of Internet Finance

On December 19,1990,the Shanghai stock exchange officially opened,mean that the Chinese have their own capital markets.In the second development of 19 years,the achievements of China's capital market in a market economy is undoubtedly and obvious to all.Securities companies,as an important part of the capital market,play an important role as financial intermediaries between the supply and demand of capital.Such data means that small and medium-sized securities firms are undoubtedly the subject of China's securities industry under the new normal of the economy.Level of the development of small and medium-sized brokerages largely represents the overall level of development of China's securities industry.From the perspective of quality,the top 20 securities firms with total assets have more than50% of the market share,and their profitability and asset quality are significantly better than those of small and medium-sized securities firms.In recent years,the development of the securities market gradually shows the Matthew effect,and the business scope and profit space of small and medium-sized securities firms are gradually compressed,and many small and medium-sized securities firms are faced with a huge test for their survival and development.Reference in this article,the author summarizes the case of a large number of domestic and foreign securities market development and the transition pattern,combined with the characteristics of the small and medium-sized securities companies in China and the present situation of the brokerage business of China to provide reference for our country's small and medium-sized securities brokerage business transformation.The Internet finance is a new type of organic combination of technology and financial forms,the advent of the era of the Internet financial for the development of the securities industry has brought great opportunities and challenges.The traditional securities brokerage business for the advent of the era of the Internet financial also entered a new stage of development.The whole securities industry is facing increasing pressure of survival andcompetition.How to find solutions to promote the transformation and development of traditional securities brokerage business in the Internet financial era with the help of technology and financial innovation has become an urgent problem for the securities industry.Throughout the development history of foreign securities industry,with the implementation of floating commission system,American securities operating institutions have been divided into "complete service providers providing information consultation" and "discount brokers providing only trading channels".With the emergence of differentiation,the role of information consulting and the way of collecting consulting fees have become the research object of scholars.From the perspective of product innovation,enriching product types and improving product selection channels can well expand the profit margin of traditional brokerage business and effectively solve the contradiction between rigid supply and elastic demand between brokers and customers.From the perspective of marketing system,through the research and exploration of Chinese market on transaction cost model,marketing expense model,spread income model and time value model,it is believed that differentiated pricing should be carried out according to commission discount coefficient,and meanwhile,the profitability should be improved through diversified and differentiated services,fundamentally changing the dependence on the current channel model.This paper provides a feasible reference for the transformation of traditional securities brokerage business in China by referring to the development path and mode of foreign securities firms.This paper mainly takes two economically developed countries,the United States and Japan,as examples to analyze a variety of brokerage cases,such as: 1.Bank of America Merrill Lynch model model;2.2.E-trade model;3.Charles Schwab model;4.SBI model;5.Monex schema model.Through the targeted analysis and reference to the key success of these cases,the author puts forward opinions and Suggestions on the transformation and development of the brokerage business of China's small and medium-sized securities companies.Combining the above analysis on the development of China's domestic securities "H" transformation and puts forward opinions and Suggestions: 1.For small and medium-sized securities companies,as the securities company licence barriersgradually blurred,select its securities brokerage business specialization,differentiation,transformation of network course,focused on building the competitiveness of the specific areas or areas,it is a right choice.2.Commission war is not sustainable.Brokerage business of securities companies still needs to return to the essence of providing financial services.The brokerage business will gradually get rid of the traditional single channel service mode and further transform to product innovation to provide customers with more personalized and professional services.3.Upgrade the service technology of smes,so that customers can experience more professional services and better protect the rights and interests of investors.4.Transform from traditional channel merchants to wealth management.In the context of wealth management,securities brokerage business will be the most important flow entrance.Relying on online services based on APP,the all-self-service experience of securities brokerage services will be better and better.In the future,the full online automation of brokerage business(excluding margin trading)may not be far away.The transformation of securities brokerage business is a continuous systematic project,which will not be accomplished overnight.