On Development Of Personal Banking Services In China's Small Banks

Personal banking services, which is one of the most important components of modem commercial banking industry, has become a profit generator of commercial banks because of its fast development, wide scopes and low risks. After entry into WTO, the openness of the financial markets makes Chinese commercial banking industry have to face fierce competitions and challenges. In that case, the Chinese commercial banks, especially the small banks, have to pay much attention to these problems in order not to loss their markets opportunities and shares. It is of practical significance to find out the gap of the personal banking services development in China's small banks and explore the strategies to gain a victory in competitions.Personal banking services are divided into services in broad sense and services in narrow sense, and in this thesis we shall investigate those personal banking services in narrow sense, which including all the products and services classified by commercial banks according to their client objects, aiming at providing services to individual resident. These services are founded on the theories of commercial bank management, financial innovation, market subdivision and market positioning. By analyzing the supply and demand and relevance between personal banking services and the bank benefits of small banks of our country, we find that the demand of personal financial services has not been satisfied, that is to say, there exists a demand gap. As there is a positive relevance between the personal banking services and the bank benefits, it is of broad prospect for small banks to develop personal banking services. The method of SWOT analysis shows that small banks have the advantages of flexible mechanism and geographic position to develop personal banking services, but they also have the disadvantages in respect of scale, outlets, varieties, market positioning and manpower availability. The sustainable development of national economy and the steady increase of the disposable income of the residents provide opportunities for small banks to develop personal banking services, but they are also in face of serious challenge. Therefore, this thesis brings forward measures for developing personal banking services in the five respects of building high quality service image, ascertaining market positioning, establishing personal credit evaluation system, finding differentialized distribution channels, and accelerating the introduction and training of manpower.