Research On Development Strategies Of Online Banking Of Commercial Banks In China

Online banking conies up with the development of e-commerce and financial network, although development of Internet banking in the our country hasn't taken a very long time, after several years of development, China's Internet banking has taken shape, and has basically formed a competitive market composed of state-owned banks, joint-stock small and medium-sized banks, and foreign banks.With China's accession to the WTO the end of the protection period, China's banking sector is fully open to foreign banks. Since online banking has its own competitive advantage, it will become a major weapon that banks need to compete for market share. In face of the fierce competition in the market, how to innovate in products and services to improve their core competitiveness is grave problem that China's major banks have to face.Strengthening financial innovation, improvement in difference among products as well as services, customer-oriented project and focus on shaping brand image are the most important factors that influence core competitiveness of Internet banking. Therefore, this thesis focuses on development on countermeasures of online banking business of China's commercial banks.This paper is divided into five parts.Chapter I of the thesis is introduction. The chapter is mainly on the research background, significance, purpose of research and study of the literature review.Chapter II of the thesis is summarization of online banking business of commercial banks and related theories. The thesis first defines online banks in the commercial banks, then analyzes the characteristics of commercial banks and introduces online banking, also demonstrates its competitive advantage. On the basis of the analysis the thesis draws the theoretical foundation of the development of online banking business, mainly on the economies of scale theory, theory of competitive advantage, as well as investment in the Nash equilibrium theory.Chapter III of the thesis compares experience of online banking and business development between domestic and foreign commercial banks. This thesis introduces the development of online banking at home and abroad, and compares their business development, sums up the foreign experience in the development of online banking.Chapter IV of the thesis are existing problems of the development of China's Internet banking. The analysis of thesis is from five aspects: the system security, management models, functional development, and supervision and management, pointing out existing problems. Combining with the current rapid development of e-commerce which has impact on online banking, the thesis propose to promote the online banking to develop e-commerce in China.Chapter V of the thesis is solutions of China's commercial banks' online banking business development in e-commerce circumstance. The thesis analyzes the development of China's Internet banking problems on the basis of the rapid development of e-commerce with the new situation, and proposed countermeasures of the development of the current Internet banking including security mechanism, the concept of operations, operating mode, supervision and training of personnel.This paper concludes that: development of on-line banking business is important choice to improve the core competitiveness of China's commercial banks; commercial banks should strengthen risk prevention awareness, and improve risk system and supervision system of online banking; customer-oriented business philosophy should be applied; and vigorously developing online payment, and exploring new profit model, achieving online banking channels by the service centre of the profit; while strengthening composite training professional people, it is needed to provide personnel protection for the development of China's Internet banking.In this thesis, the innovation is that the author analyzes the impact of proposed Internet banking on the status of development at home and abroad, with the current e-commerce development. The author proposes Internet banking is an important guarantee for e-commerce and online payment is an important means to enhance profitability of Internet banking.Through this research, it is hoped to further promote China's commercial banks' online banking business development, and to further promote the competitiveness of China's online banking business in the market.