Domestic Commercial Banks Financial Products Development Trend And Strategies

With the rapid development of social economy, the wealth of domestic residents has been growing rapidly, which are specifically performed by the continuous grow in bank deposits, the annual average savings of urban and rural residents has grown by 20% or more, and the deposits of urban and rural residents has reached 26.08 trillion Yuan in 2009. Meanwhile, with the continuous enlargement in personal knowledge and continued improvement in their understanding to the financial markets, domestic residents'financial awareness is becoming more and more consciously, in the hope of grasping asset appreciation through a variety of investment portfolio. Under the above phenomena, the domestic commercial banks were granted more expectation by the public, because more and more people want to achieve their asset appreciation through bank's asset value-added financial products. Compared with the barren of commercial banking products in 2000, the number of financial products has double increased since 2006, however, the characteristics of financial products, such as homogeneity, monotonicity, as well as non-branding have been widely recognized as common shortcomings. Therefore, defining the development trends and innovating the development strateges of financing business are regarded as commercial banks' preliminary issue, whether viewed from the needs of growing wealth of the residents, or to the urgency of gaining access to new profit to domestic commercial bank, more importantly, to the enhancement of banks'assurance to the whole financial markets and special commodity markets,Started from the history of financial products'appearance, this paper firstly introduced the development of financial product since RMB financial business was conducted from 2004 to 2010 in China banking sector, then, this paper analyzed the significance of developing financial products, and detailed the significance to social economic development from both issuers'and beneficiaries'aspects. Meanwhile, this paper also provided kinds of comprehensive classification to financial products based on series elements, such as currency, duration, issuers, revenue means, underlying assets, and investment field. Besides that, to earnings estimates, this article also theoretically gave corresponding methods by comparing the actual earnings in recent years. Last but not the least, this paper prospected the development trend concerning national commercial banks'financing business through analyzing banks'total needs and individual needs, and analyzing financial products'investment market. This paper promoted suitable ideas for financial products'development, and eventually formatted a diversified, efficient, competitive and orderly development pattern for financial product.Customer needs and market environment is the basis for the development of financial product design. From the demand perspective, China's rapid economic growth in the future can still be expected, which determined, in the expectable future, the growth in national wealth can be extended. From the market environment, the development of all types of investment market, the variety of futures and financial derivatives, and the continuous increasing concerning financial investment instruments, methods and tools, and more diversified investment, all of which have been the superior basis for the development of financial products. In summary, the development of financial products showed us the following 6 trends based on both internal and external aspects:1.The trend of product diversification 2. The trend of product individuation.3.principal non-guaranteed trend 4.product conformation more complex.5. More focus on product branding 6. Guiding trend of short-term financial products。Based on financial products' development trend, in accordance with our current condition, existing problems,and combined with the analysis concerning our understanding to the current condition,this paper presents six strategies concerning our financial products' development in our commercial banks:1.scientific pricing.2.more focus on high-end customers.3.enhance productliquidity.4.optimizing product mix.5.strengthen brand building.6.strengthen risk prevention.