The Research Of Domestic Commercial Bank In Developing E-banking Business

Since 1990s, local commercial banks of China has been making great efforts on their E-banking business leading by new electronic distribution channels representatively by Internet bank, tele-bank, and mobile-bank etc. Commercial banks hope it can provide customers more convenient and safer financial service, release the increasing pressure of line waiting in sub-branches, and relocate more human resources to more profitable business of wealth management by improving technologic capability themselves. With the high-speed development more than 10 years, service model has changed from the simple one with over-the-counter only to multi-channel module combined E-banking with sub-branch network, Internet bank, tele-bank, and self-service machines.After analyzing current development of commercial banks of China in E-banking business, the article concludes E-banking business is still in the seedtime. Products of E-banking include basic business, investment on-line, shopping on-line, personal wealth management, enterprise banking and etc. At the same time, regulation, safety, credit line system, and acceptance of customer limit its development. Therefore, the energetic development of E-banking can not be achieved unless rational cooperation of People's Bank of China (PBC), China Banks Regulation Commission (CBRC), China Financial Certification Authority, commercial banks and payment platform of third party.The article also analyzes the dependent relationship between E-banking business and traditional distribution channel of sub-branches network, which is based on experiences of western countries. Summarized the advanced experiences of the United States and Europe, the basis of long-term development is complete and effective safty mechanism; the guarantee is high efficient management structure; the direction is consolidation of multiple channels. The main purpose realized by E-banking business addressed in the article, which based on advanced experiences of developed countries and summarize current status of China's local commercial banks, includes: reduce const, increase profits, establish bank image-building, improve customer service level, enhance speed of finance innovation, attract customers, increase market share, improve working efficiency and etc. The article also points out the gap between banks in China and oversea is large at a certain extent. Current E-banking business of China mostly are developed based on traditional business of commercial banks. The normal method is combined traditional business with internet in order to realize new E-banking service. The problems existing by doing so are: lack of effective measure to control commercial risk with single technical solution, lack of laws of E-banking, simple methods of marketing, service and training for E-banking business; weak construction of bank's infrastructure setup. All above-said problems have limited the development of E-banking business of China's commercial banks.Commercial banks of China has to tailor long-term strategic objectives that suits themselves based on current operation environment, at same time use advanced experiences of banks oversea for reference. In western countries, many commercial banks take profit as strategic objective for E-banking business. However, it is not feasible at the current stage of China's E-banking development especially in the infant operation environment. Meanwhile, market share of commercial bank is still decided by the size of sub-branch network and the number of traditional business that banks can offer. The effect of E-banking business on increasing market share will not be obvious in short term. Therefore, the development objective of E-banking business should be upstanding image-building of bank, release pressure of line-up in sub-branches, and attract high-quality customers. The article then put forward the key solutions these problems are setting up service culture of customer centralization, making the strategy of consolidating traditional business and E-banking as multi-channel parallel development, and improving compliance construction and reorganizing internal procedures. The article points out commercial banks of China should walk out a way that is suitable for current stage of E-banking business development and current economic situation.Although the development of E-banking business of China faces many problems, especially some institutional and operational ones, that can not be solved in short term, commercial banks should treat them carmly. No rush and no passive. The article suggests the best way of E-banking business development of China's banking industry is to tailor based on actual situation.