Analysis On The Transformation Of Securities Brokerage Business Model

The Chinese securities market developed from nothing to the current massive size, has achieved great-leap-forward development. Operating data shows, brokerage business is the major business that securities corporations depend on, but in recent years, the brokerage business is encountering development bottlenecks, intensive vicious competition and profitability declination, all caused by problems like saturation of operating branches, simplified profit mode, serious product service homogenization and so on. Along with the maturing of investors, the traditional brokerage business mode with concentration on exchange channel services can no longer meet investors’diversified investment requirements, the living space of securities corporation is compressed by financial institutions like banks, trust institutions and third party wealth management institutions."Too simplified profit mode, fallen traditional business, undeveloped service ability and desperate business transformation" truly reflects the current image of securities corporations’ brokerage business.This article will deeply analyzes through the current situation of securities corporations’brokerage business, to find out the problems that pushed brokerage business into difficulties. With reference to foreign mature securities corporations’ successful experiences and the excellent practices of domestic financial institutions, combines with the research into the new opportunities and development trends of domestic securities market, the article will search for the advantages of brokerage business and discuss feasible directions and detailed considerations of the transformation of brokerage business under new circumstances.This article concludes the followings through researches:The business transformation of brokerage-type securities corporations can adapt low costs competition mode, with reference to the successful experience of third party wealth management, can achieve small size wealth management through introducing external service product under the fundamental of low costs competition mode; Comprehensive-type securities corporations can fully utilize the advantages of comprehensive business line to adapt professionally integrated wealth management mode.This article takes comprehensive-type securities corporation A company as an example, fully analyzed its’ current brokerage business modes, to find out the elements that restricted brokerage business to grow healthly in long-term, in addition with the foregoing summaries, this article attempts to designe A company’s brokerage business transformation modes from multiple angels including profit modes, organization modes, management modes, marketing service modes, successful transformation safeguard mechanism and etc, hope to contribute substantive references to the transformation of brokerage business.