The Study On E-banking Business Of Small And Medium-sized Commercial Banks Of China

In recent years, with the continuous prosperity of Chinese economy, rapid development of e-business and full opening of banking industry and banks are continuously introducing kinds of innovative financial products to improve service quality, aiming at attracting high quality customers and increasing the market share. As one of emerging businesses, nowadays, e-commerce is becoming the hot point in the competition among commercial banks. As a result, banks are investing large amount of money to project and develop e-banking vigorously. So far, the service mode of the banks has preliminarily shifted from traditional branch network sites mode to a modern one with the co-development, cooperation and complementation of branch sites and e-banking service sites.Considering the development of e-banking business around the world, the advantage of E-banking is not only restricted in low cost and wide coverage, but also in marketing, intermediate business, technology innovation, management system and risk control by integrating and restructuring the traditional banking business.Currently, the small and medium-sized commercial banks of China, limited by assets scale, regional distribution, management mode, customer group, business scope and personnel quality, have great uncertainty in various areas such as business environment, development space, market share and regulatory environment when competing with large banks, national shared banks, postal savings bank and foreign banks. In order to seize the development opportunities and effectively utilize the advantage of electronic banking in the rapid changing markets, small and medium-sized commercial banks also launched their own electronic banking service one by one, expecting to conduct "people-oriented" marketing strategy and overcome the shortcomings such as high business homogeneity, poor product innovation, customer segmentation and differentiation shortage to realize rapid development and achieve cross-regional operation during "the twelfth five-year plan " period through constructing a high-integrated product and innovative service platform.Through analysis of the macro environment, industry status, rivals, core competition ability and the internal and external environment of developing e-banking business of small and medium-sized commercial banks, this paper explores not only the strategic necessity of the electronic banking business, but also the development mode of electronic banking. For the small and medium-sized banks, the findings not only highlight the impossibility of copying the development mode from nationwide commercial banks completely, but also show the importance of innovatively establishing suitable mode with their own characteristics.Through case study of a certain city’s commercial bank, this paper makes a detailed analysis on the development strategy, customer orientation, network layout, product design&pricing, business processes and risk control based on management theories including SWOT and Michael Porter’s "Five Forces". According to the characteristics of the electronic banking of small and medium-sized commercial banks, this paper also suggests that in the developing process of e-banking business, small and medium-sized commercial banks must conduct cross-bank cooperation regionally and integrate limited resources to break the development bottleneck of low level counter business electronization as well as to grasp the opportunity from the great development of Chinese e-banking business which contributes high practical significance and reference value.