| Along with the rapid growth of China's economy and the accelerating step of internationalization, China's banking sector is faced with enormous challenges. The development of enterprises'short-term financial notes together with the market drive of interest rate is making banks under a huge pressure of losing clients. The reactivation of IPO market and the accelerating speed of new share issuance results in the constriction of indirect financing business and the aggravating disintermediation of commercial banks. Meanwhile, personal financing services, stock exchanges'durative bull market, and fiery-hot fund business attract an immense amount of low-return bank savings. New Basel Capital Agreement brings forward a higher requirement on bank capital. While international players have been given access to domestic banking sector, the competition among local banks has been in a fury. All these aforesaid indicate a significant change in terms of operation environment of China's banking business, which makes the strategy decision become a common issue that all domestic banks are concerning. How should a domestic bank figure out a way suitable for its business development? Retail banking services, which have been neglected for a long time, are suddenly regarded in this historical period, to an ever highest strategic extent.Being an employee of China Citic Bank, I witness the transformation from wholesale oriented services into a combination of wholesale and retail banking services, which China Citic Bank is undergoing; and I therefore find out several problems occurred during the course of such strategic transformation. This paper is seeking some practicable tactics serving for the strategic goal that China Citic Bank aims by analyzing the business transformation of the bank. The first part of the paper focuses on background materials of China Citic Bank, in order to find out the reasons of the bank's transformation. The second part is describing the history of the business transformation of China Citic Bank. Then, the third part is about to expatiate on obstacles of the business transformation from aspect of financial regulatory system, internal controlling system, domestic banking market structure, credit system, marketing concept, etc., and point out the negative influences on retail banking services, which include the extreme restriction on domestic banking sector under the state financial regulations, the shortsighted impulsion of management team due to banks'performance requirement, the unfair competition between domestic players, and the defective banking services free of marketing consciousness. The fourth part of the paper intends to identify those key issues that need figuring out, for the advance of retail banking business through an in-depth study on advanced experiences of both domestic and oversea retail banking business operations. Finally, the fifth party of the paper, in consideration of China Citic Bank's strategy, suggests China Citic Bank to undertake its task from marketing, staff, intermediate business, internal operation flow, e-bank, and the like aspects, and moreover, brings forth some corresponding measures for the bank's developing of retailing services.In conclusion, based on my working experience with China Citic Bank, I have been trying to accomplish a constructive research on the bank's strategic transformation, in resort to those financial, management, and marketing knowledge I obtained during the MBA courses, with the purpose of clearing up of my thoughts to the development of the retail banking services and also providing some useful suggestions and advice. |
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