Do you know what s going on with the retail transformation of banks? Please, thank you

Development ideas: With the steady progress of China's economic restructuring and banking reform, the transformation of commercial banks has become an irreversible trend.

The transformation of commercial banks is a dynamic and evolutionary development process, which includes two aspects: it is necessary to carry out targeted optimization and compliance adjustment of its own business structure according to changes in the external business environment and regulatory policy requirements; On the other hand, there is the digital transformation of business.

It is necessary to take advantage of various financial technologies.

Theories and technical methods actively explore the market, take the initiative to create opportunities and innovate business models.

Measure. 1. The transformation of business structure should take retail as a breakthrough.

Against the backdrop of economic downturn, market-oriented reforms, and increased risk exposure, the development mode of traditional commercial banks has become unsustainable. The business transformation of commercial banks involves corporate, retail, and financial markets.

Risk management and other business segments are a comprehensive and protracted battle.

Among the many business transformation directions of commercial banks, retail banking has its own unique advantages, and has become an important path for commercial banks to diversify risks, optimize business structure, and achieve growth against the trend. from the representative China Merchants Bank.

From the perspective of the results of retail transformation and development, the continuous expansion of retail banking business is an important direction for the transformation of the overall business structure.

2. The digital transformation of business needs to create an Internet business format.

Digital transformation is the product of the combination of technology and finance, an important means to improve customer service efficiency in the Internet era, and a catalyst and booster for commercial banks to improve operation and management efficiency. The digital transformation of commercial banks must conform to the law of Internet development, and the essence is to promote business efficiency through information efficiency.

In order to meet the changes in customer needs and behaviors, commercial banks need to take advantage of the advantages of information technology to continuously strengthen the innovation of service models and methods. With the continuous improvement of the digital level of commercial banks' operation and management, the focus of customer service has gradually become online and networked. At present, efficient, convenient and secure Internet financial services are constantly being accepted by customers.

Retail banking is the future of the banking industry.

Retail banking is one in China.

It's an emerging field, but it's a pivotal business for Western commercial banks. In recent years, the retail banking industry in developed countries has shown a booming trend. Under the impact of the wave of financialization and investment institutionalization, more and more enterprises and companies bypass commercial banks to directly raise funds in the capital market, resulting in a decline in the relative proportion of the traditional deposit and loan business volume of commercial banks in these countries, and a decline in the ability of Western commercial banks to obtain income from wholesale banking business.

For example, Citibank in the United States has established a consumer financial services department since the mid-70s to provide consumers with a variety of distinctive and diversified retail banking services, and the bank made a profit of $1.4 billion in this field in 1994, accounting for 41% of the total profit. Retail banking is the traditional advantage of commercial banks, but with the opening of financial markets in various countries, the boundaries of financial classification management in the past are gradually blurring and diluting, and the cross-cutting of banks, insurance companies and insurance companies is becoming more and more common. The increasing number of non-bank financial institutions, financial institutions that did not previously operate in the retail business, and non-traditional financial services companies are entering the market, increasing competition in this business area.

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The new trends of the banking retail industry in the context of Internet finance are:1Mobility, with the popularization of smart phones, more and more people choose to carry out banking operations through mobile devices, instead of through traditional counters, ATMs, etc., therefore, banks need to strengthen the construction of mobile and provide more convenient mobile banking, mobile payment, online account opening and other services to meet the needs of consumers; 2.

With the application of big data, banks can use various data analysis tools, such as artificial intelligence and machine learning, to analyze customer behavior and preferences, formulate more personalized services and marketing strategies, and improve customer stickiness and satisfaction. <>

<> what are the new trends of banks' retail business in the context of Internet finance?

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The new trends of the banking retail industry in the context of Internet finance are:1Mobile, with the popularization of smart phones, more and more people choose to carry out banking operations through mobile devices, instead of through traditional counters, ATMs, etc., therefore, banks need to strengthen the construction of mobile facilities, provide more convenient mobile banking, mobile payment, online account opening and other services to meet the needs of consumers; 2.

With the application of big data, the bank can use various data analysis tools, such as artificial intelligence and machine learning technology, to analyze customer behavior and preferences, formulate more personalized services and marketing strategies, and improve customer stickiness and satisfaction. <>

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In the context of Internet finance, the new trends of bank retail business include: 3Fintech cooperation, banks can cooperate with Internet financial enterprises to jointly develop new financial products and services, such as consumer finance, small loans, wealth management, etc., to meet the needs of consumers, but also improve the market competitiveness of banks; 4.

Refined management: Banks can improve customer satisfaction and loyalty through refined customer management, i.e., through the establishment of customer portraits, classified management, personalized services, etc. <>

To be honest, the current retail business in China's banking industry is actually referring to savings deposits. In non-mainland areas, the retail business is developing very well, including: personal credit business, wealth management, investment and so on.

Now in Chinese mainland, this consciousness and concept is still being cultivated, and it needs to reach a certain stage before it can be sublimated.

Therefore, if the landlord has to talk about the breakthrough point, I personally think: Chinese love to save money, do not like debt consumption, so the breakthrough point is the financial management business, through various means to bring individuals high returns, low risk products. These include:

Treasury bonds, principal-guaranteed wealth management products, or insurance wealth management (not recommended by individuals, because the general means are to deceive customers). Hope it helps.

How can we talk about retail business transformation?

To put it simply, it is not only a single profit channel for interest spreads, but also increases the proportion of intermediate business income.

How much does the banking industry really value the retail business? A number of semi-annual reports** force point.

Listed banks are halfway through the disclosure of their results in the first half of this year. Up to now, 14 A-share listed banks have completed the disclosure of their 2017 interim reports, including Bank of Communications, 5 joint-stock banks, 4 urban commercial banks and 4 rural commercial banks.

According to the data, 14 listed banks collectively achieved positive net profit growth year-on-year in the first half of the year, of which only China Merchants Bank had a net profit growth rate of more than 10% among the joint-stock banks. In the case of the decline in overall operating income, the significant tax reduction of the "business tax reform" and the slight reduction in provisions provided positive support for the growth of net profit.

From the perspective of asset-liability structure, listed banks are affected by the policy of "strong supervision", and the overall compression of interbank assets and liabilities is obvious, and the growth rate of loans is significantly higher than the growth rate of assets, among which retail loans represented by personal consumption loans, credit card overdrafts and mortgage loans have grown rapidly. On the liability side, deposit absorption will be placed in a more important position, while appropriate interbank certificates of deposit will be issued to offset the impact of the decline in the scale of interbank liabilities. It is worth noting that China CITIC Bank and Bank of Shanghai both "shrunk their balance sheets".

In addition, the relatively low valuation of bank stocks has also attracted securities companies and social security ** to increase their holdings in the market in the second quarter. According to the data, 6 of the 14 banks were increased by securities companies in the first half of the year, of which Bank of Nanjing has been increased to close to the "holding line".

On the asset side, we will increase the allocation of retail loans.

As of the end of June, the total assets of the 14 listed banks increased to one trillion yuan from the beginning of the year, of which the growth rate of loans (significantly higher than the growth rate of assets.

It is worth noting that China CITIC Bank and Bank of Shanghai both "shrunk" in the first half of the year. Li Qingping, chairman of China CITIC Bank, said that this year, it will accelerate the transformation of "light capital, light assets and light cost", and control the scale of the bank's total assets and risk-weighted assets and slow down the rate of capital consumption by actively "shrinking the balance sheet".

From a structural point of view, except for the Bank of Communications and the Bank of Hangzhou, the rest of the banks chose to reduce their interbank assets in the first half of the year, among which China CITIC Bank reduced its interbank assets by more than 280 billion yuan, ranking first among the listed banks that have disclosed their interim reports.