Research On Business Model Of Small Banks In The U.S.

As the reform of rural credit cooperatives is in full swing and the number ofvillage banks is increasing under the encouragement of national policy, the smallbanks in our country are showing a booming trend.But how to enhance the corecompetitiveness of small banks to ensure its sustainable development is a queationneed for deep thinking.Small banks in the U.S. undergo the impact of the financialregulatory change, advances in information technology and repeated economiccrisis,but the number continues to occupy the vast majority of the banking system andsmall banks survived in the competition also show a healthy and stable developmentcapacity.Therefore,to study the unique business model of small banks in the U.S. andto provide a reference for the development of small banks in China have farreachingsignificance.The main purpose of this study is weather the small banks in the UnitedStates have a distinctive business model to enable them to gain a foothold in themarket competition,and if it exists,how specific manifestations.This paper firstly defines the concept and elements of small bank business modelbased on the theory of business model, and lay logical framework and theoreticalbasis by combining with small bank advantage theory.Then we introduce the historyand current status of the development of small banks in the U.S.and give a detailedanalysis of its unique business model.At last this paper presents related content worthsmall banks in China to learn based on the summary of features of the U.S. smallbanks’ business model.This paper argues that small banks in the U.S. show thecapacity for sustainable development in the face of increasing fierce marketcompetition,so there come to the conclusion that small banks have a unique businessmodel.The unique business model in the U.S. small banks specific performancein:firstly,the profit model bring into correspondence with business scenario in valuecreation aspect.Small banks provide traditional banking business to earn income,thatis,mainly to obtain funds through deposit-taking business,and provide loans for smalland medium-sized enterprises and farmers to get interest income.Small banks createvalue for customers at the same time to create their own value.Secondly,theinfrastructures such as customer relationship,corporate governance structure andorganization structure within small banks as well as the survival of the externalmarket environment,regulatory environment,the deposit insurance system and industry associations offer good conditions for value creating.Small banks in ourcountry should learn form the U.S. small banks in the aspects of businessdevelopment key, corporate governance structure, customer relations and externalenvironment.