Relationship Lending And Customer Relationship Management

Relationship lending is of great significance for enhancing the profits of banks and enlarging the ways of corporations financing. But the present conditions of China banking, social tradition and disadvantages of its own prevent the development of relationship lending in our country, it is time for us to take some measures to change the poor condition.At the very beginning, the thesis introduces the characteristics of relationship lending. It has a lot of advantages such as solving the free-rider problem of transaction lending and promoting building long relationship between banks and corporations. The main feathers of relationship lending are the specialization of colleting and obtaining information. But the relationship lending also has some disadvantages, it may cause soft restrain and holdup problems.Then the thesis discusses the real meaning of"relationship"in China traditional society. In China we believe that relationship is personal and private, which is not public and fair. It means the relationship lending is s private relationship between creditor and enterpriser which may cause many serious problems.Next the thesis introduces Customer Relationship Management whose core spirit is"customer centered". This system collects customers'information by utilizing network technology, controls customers'need and consume model and builds record for each valued customer. The banks analyze customers'potential needs and predict their future consume behaviors by using the collected information. Then the system divided those customers in to several groups according to the records. The aim to do this is to find the most valuable and potential customers, then the bank can design special products according to their special love. CRM can helped to build stable relationship between customers and corporate through providing unique service and"person to person"marketing skills which is a win-win business strategy.However, only several banks introduced Customer Relationship Management in China. They only introduced the concept and did not put it into some certain business. Now the China banking is opening to the world and financial market is facing serious completions, relationship lending is of great significance for enhancing the profits of banks and enlarging the ways of corporations financing, so bank will make effort to develop this business.Finally, considering the feathers of relationship lending and Customer Relationship Management, I suggest to introduce CRM into relationship lending and discuss the main steps of implement CRM. However, there are also many obstructs such as conservative point of view, control and manage system waiting to be overcame.