China's Commercial Banks Personal Loan Business Process Reengineering

The personal loan business in our country just started from the 1980s, along with the improvement of current national standard of living, residents are more inclined to accept the individual consumption loans ideas that can enhance the quality of life. Facing the enormous personal market, China's commercial banks have attached more importance to the development of retail business. Personal loan business has gradually become the main development and profit growth of China's commercial banks. The importance of personal loan business has been increasing, and individual banks have progressively focused on the efficiency of personal loan business. However, the personal loan business starts late in China. It has not formed a scientific and standard operating procedures. The problems existing in personal loan business process become the factors that will hinder the personal loan business develop efficiently. Currently, many banks are reengineering their own personal loans process and the model. They try to obtain high-speed and robust development of personal loan business through reasonable, fluent business processes. Establishing modernized, standardized and efficient personal loans process has become the key exploration of various domestic commercial banks.On the basis of the current problems of personal loans process and in the light of comparatively mature personal loan process in the United States, this paper deals with the process reengineering of China's commercial banks'personal loan business. It's expected to provide ideas and help to the commercial banks for personal loans process through this research.In this paper, the first chapter compares the current situation of the development of the personal loan business at home and abroad. By the comparison of the business development process and the current developing state, it is said that the main reasons of the differences about the personal loans business developing situation in two countries are the system, credit system, legislation, bank loans process and so on.In Chapter II, the models of personal loans about domestic and foreign business process are further compared and analyzed. It proposes that China's commercial banks'personal loans models are normal model and advanced personal loan center model. Normal model refers to the model in which every commercial bank branch operates all the processes of personal loan business independently. At present, it is a more widespread operational mode among domestic banks. The more advanced model is that of personal loan center, which refers to commercial banks gathering the operations about personal loan business processes to some extent. And it gives a more detailed description of the two models of the process. Their characteristics and problems are analyzed and summarized. This paper will continue to give a detailed introduction of the personal loan process of commercial banks in the United States, analyzing its design ideas and its effects. It pointes out the characteristics and advantages of the personal loan center model of the commercial banks in the United States. In comparison with the domestic and international personal loan business processes, we get some considerations about process reengineering for domestic personal loan business, which needs to establish a personal information management system and credit system, to build examination and approval system with modern technology and methods, and to establish the efficient , intensive operation personal loans center model under the business unit system.Chapter III gives an in-depth analysis and research of the personal loan business process reengineering in China's commercial banks. Firstly, it gives the realistic meaning of bank building process banking system, the relationship between business process reengineering and process bank building, and pointes out that the bank should take BPR(Business Process Reengineering) as the main line to reengineer business process, use BPI (Business Process Interaction)measures and follow the structure that designed before to gradually promote business process optimization. The restructuring is to be conducted when internal system is basically ready, forming a view that the structure adjustment should be smoothly taken. Secondly, it gives an in-depth analysis of the need for the personal loan business process reengineering. It also pointes out that personal loans BPR is client-centered, which will increase the overall efficiency of personal loans business and reduce business risks of personal loan. Thirdly, it pointes out that the Six Sigma management theory is the methodology of personal loan business process reengineering, making recommendation for personal loan business process transformation.Chapter IV is mainly about empirical analysis. It makes recommendations to improve processes of the Construction Bank personal loans in process, envisages a process of transformation and provides the processes transformation problems faced.