The Development Strategy Of Small And Medium Enterprises Financial Services For X Bank

Under the current environment where traditional commercial operations are faced with significant new challenges and opportunities brought forth by interest rate deregulation, directly available capital market, and implementation of new technologies. Domestic banks are becoming more attracted to the market for small and medium enterprises (SME) because of its large financial market potential, high profit margin, and low capital requirements.Domestic and international researchers have performed extensive research on SME financial services operations and yield results with recognizable breadth and depth. It is widely believed that biased information availability, inconsistent SME management standards, dated financial regulations and framework, limited credit system and governmental and political interference all contribute to the difficulties in the SME financial service operations. Domestic researchers have made practical recommendations and suggestions in principle; however, most of the available publications are focused on government’s support to SME industry, credit and counterparty system and overall financial service market framework. Writer believes such publications didn’t provide enough insight into the commercial banks important role as the financial service provider to the SME industry.This article shares research results on SME financial products and operations from the prospective of the Industrial bank and provides a holistic view on SME financial products and operations. Writer hopes to enhance the domestic SME industry innovation and sustainable development, and the article serves as a future reference for other commercial banks in the fields of SME financial service in the years to come. Utilizing the strategic management theory and related tools, PEST method, and PORTER five model analysis theory, this article analyzed the internal and external environment of the Industrial Bank regarding SME market, and summarized overall opportunities, threats, advantages as well as disadvantages. By using the SWOT analysis model, the article outlined all the strategic options available to the Industrial Bank, and recommended specific strategy implementation actions the bank can take on its SME financial service offerings after careful considerations of its abilities and its overall objectives on SME market.