The Localization Strategy Of A Technology Bank In China

As stated on the 18 th National Congress of CPC “Technology and innovation are the strategic support for improving social productivity and comprehensive national power,placing as the core of the overall country development.”,which is emphasizing on the independent innovation path with Chinese characteristics and innovation-driven development strategy we should adhere to.Guiding by the policy,tech and innovation will be the main driving force for future economic growth,while finance,being the core position to modern economy,mixed with tech innovation will be deemed as an unneglected important part of country development strategy.In order to support full life cycle covered tech and innovation companies from incubation to early stage till late stage,traditional finance philosophy must update and upgrade to a tech finance thinking.Under the current China finance scope,early stage or small to medium sized tech and innovation companies' main financing channel still stick to banking system,apart from series of venture risk investment funds,therefore,a specific financing serving for tech innovation companies from tech banking is a key financial power for tech and innovation soaring in China.In the recent ten years,the development of China's tech banking is quite diversified,local bank tech sub branch,internet banking,private tech banking,and tech banking with foreign shareholder background etc,all the above are the tests on the tech banking research road.Within which,A tech bank,as a JV bank with international famous name on the shareholder list,carrying the DNA of a successful tech bank,its rooting in China largely depends on the localization strategy.Based on the existing research at home and abroad,target at A Technology Bank,through a business comparison with its parent Silicon Valley Bank,find out the internal and external reasons,finally result with a local development solution for Chinese technology bank.As one of the tributaries of all the tech banks,A bank has been granted with high expectations given its extraordinary resources and capability as well as the highlights of international successful experience.After its registration in China,A bank faced a completely different socio-economic policy and technological environment comparing with western economy countries where it's shareholding bank has brilliant history.That means,to transfer its successful international experience to China is not a simply copy paste,the precondition of setting up a localization strategy is a deep understanding and assessment to Chinese local market as well as a SWOT analysis.Based on the theoretical principle,external environment and advantage of the bank itself,some key points that matters to A bank's business development in China have been figured out: particularity of business risk control,target customer selecting,integration with local industries,partnership with local capital markets and eco-system,effective connection with local regulatory supervision etc,and finally realize a full localization on business,clients,brand,channel,cooperation,system,product,talents and corporate governance.In addition to the subjective initiative of A tech bank,here would also like to raise some countermeasures and suggestions,side protection need to be improved from tech innovation eco-system,legal system,capital market,regulation and other external environmental factors,in order to optimize the development environment,assisting the self-correct of the market,adapting to the tide of economic development,and paving the way for tech banks and tech & innovation enterprises.Believing that through A bank's localization strategy implementation and external environment gradually improving,China's technology banks and technology finance will surely create glory in the near future.