Research And Design On Bank A’s Intermediary Business Revenue Management System

Banking sector yields high interest spread which accounts for more than70%of its total income under the protection of national policy, while intermediary services only contribute to less than30%of the total income. The foreign banking sector just works on the other way around.Facing the interest rate liberalization and financial disintermediation, as well as the direct competition posed by foreign banks, the domestic banks can not depend on their high profitability and competitive advantage of interest rate to sustain the traditional profit-making model. At present, China’s banking industry should focus on transforming profit-making model, optimizing business structure, improving the intermediary services, and responding to the competition from foreign banks. At present, the intermediary business of the domestic banks is poorly managed, which blocks its own sustainable development to some extent, In addition, the financial consumers also complain in discontent. The author has worked for the bank for two decades. Based on the problems in work practice and the relevant knowledge of MBA programs, the author choose Bank A as the research subject, and holds that the management system on Bank A’s intermediary business revenue can be constructed by the advanced technology to introduce the intensive management and analysis. Through this management system, the bank can realize clarifying the charging standard, improving the revenue analysis reports, supplying the differential charging among customers in various regions, safeguarding the legitimate rights and interests of the consumers. Further more, the author considers that by making good use of this management system in banking sector can promote the complete business restructure of the domestic banks.This paper elaborates on the construction of "banking intermediary business revenue management system" on the basis of production database and office network while the bank’s core production system almost remain untouched. As a trinity with automatic income process, diverse charging plan, and sophisticated income management, this system intends to enhance the management of banking intermediary business revenue, effectively lower the risks in operation and reputation, optimize the customer structure and business structure, and eliminate the financial customers’discentet. The body of this paper includes five parts as follows:introduction, system implementation, system function, technical design and the conclusion. Chapter One elaborates on the system construction background, purpose, significance, design line, innovations and problems. Based on the analysis of the necessity for upgrading the intermediary business revenue management, the author offers the detailed explanation of the research purpose, significance and methods. Chapter Two conducts in-depth research on the existing problems in intermediary business revenue management and further analysis of reform direction and general approach, which offers detailed explanation to the questions above. Chapter Three comprehensively introduces the system from aspects of basic concept, the main function, service targets and organizational structure, which ensure the readers may acquire a clear and systematic understanding about the system. Chapter Four, including description of general function and specific design, is the core of this paper. This part prudently analyzes the possible measures to meet the business needs, such as the system implementation, concrete orchestration and system rebuilding, which explains the question abouf’ what to do". Chapter Five elaborates on system design, interface design, database design, and error handling. Besides, this part also demonstrates the technical support for the system within the feasible technical framework. Based on the inductive analysis above, the last chapter draws the conclusion and proposes specific systematic rebuilding plan.There are five main innovations in the system design. Firstly, the electronic centralized management with acclerating automatic and electronic processing of the banking intermediary business revenue is achieved. Secondly, the client-based differential charging is applied. Accroding to customers’ranking determined by their contributions to the bank, the bank would implement precisely differential charging to attract high net worth customers, eliminate low-income clients, and optimize the customer structure and business structure. Thirdly, the four-grade regional charging standard is established. The head office,tier-one branch, tier-two branch, and county sub-branch will replace the existing head and sub branches to execute the new charging mode, which can upgrade the extensive and centralized charging management.The system design dabbles in financial theory, accounting practices, banking system credit management, technology development, computer network and professional organization. Besides, innovations must be achieved in all perspective, such as intermediary business charge variety, charging mode, overall institution, organizational structure and R&D input. Hence, the system design is a hot potato. As a veteran in fields of bank accounting, technology development, credit operation and senior management, the author is still hand-tied in designing the system and carrying out the plan for its great complexity and overwhelming workload. During the past two years, apart from the management on banking business, the author has made enormous efforts to explore the way to establish the advanced system, and promote the rapid transformation of banking intermediary business. The parts of business need, system setup and implementation plan are basically fulfilled by the author. And some leading experts are generous in offering their support and advices in terms of technical proposals. Being interested in author’s research, the head office of the bank has send a group of experts to conduct on-site survey, and set up the R&D team to be in charge of the approved project.