The Study Of Chinese Direct Bank's Product Innovation

The popularity of Internet technology has brought the change of customers,concept about financial consumption and the increase of demand for financial services.At the same time,the accelerating process of market interest rates liberalization and the rapid development of Internet financial industry have done great harm to the earning structure of traditional banks,which rely on the spread as main source ofprofit.Under the background,the traditional banks attempt to establish direct banks,make full use of the Internet financial technology,broaden the product marketing channels,increase the effective supply of products and optimize their profit structure.But in practice,most direct banks don't have independent legal status and lack experience in product research and development.What's more,direct banking develops in a relatively short time and pays little attention to the development of products.These factors have made the contradictions between products of direct banks and the demand of financial customers more serious.At present,the homogeneity of product types,vague positioning of target customers and the lack of efficient customer experience mechanism directly affect the rapid development of direct banks.Thus as a result,it is necessary and practical to accelerate product innovation of China's direct banks.At present,there are both many favorable conditions and some restricting factors for the product innovation of direct banks in China.Gradually relaxed regulatory policies and increasingly strong demand for financial consumption in China have provided favorable external conditions for product innovation of direct banks.Moreover,the professional research and development of financial products,the advantages of risk control,strength of financial capital and good basis of credit have provided favorable internal conditions for the product innovation of direct banks in China.At the same time,the lack of independent legal status of the innovation institutions,the experience of Internet marketing and management and professional talents of relevant industry background have greatly restricted the development of China's direct banks.Therefore,direct banks should take efficient measures to get rid of the constraints of product innovation and accelerate the pace of product innovation based on favorable external and internal conditions.Compared to China,direct banks have a relatively long history and have formed a mature system of product in foreign countries,of which the United States and Canada have attained great success and have accumulated rich experience in the process of product innovation.Direct banks in America can rely on the background of parent company or cooperate with other institutions to establish special product system,whose positioning of the target customer is broad and clear and source of the product profit is various and reasonable.Direct banks in Canada not only embed promotion factors,but also focus on consumer experience.What's more,they pay great attention to the security and convenience of product transaction.Our direct banks should undoubtedly learn these successful experiences in product innovation.Based on the above,China's direct banks should speed up the pace of product innovation from the following five aspects to promote the healthy development of China's direct banks.First,change the idea of product innovation of direct banks,always pay attention to user experience and focus on attracting existing customers.Second,strengthen the ability of product innovation,establish independent product development department,fully study and apply Internet technology and experience and train and introduce talents to provide safeguard on organization,technology and talent for product innovation of direct banks.Third,build a scientific and standardized process of product development,select an efficient method of customers classification and demand analysis and establish and improve the beta mechanism before promotion and the consumers' feedback mechanism after promotion.Fourth,make clear the direction and the characteristic of product innovation,strengthen cooperation with the Internet platform,rich application scenarios of products and develop special products of different industry backgrounds.Last but not least,establish a sound management mechanism of product innovation;pay more attention to establish incentive and fault-tolerant mechanism of product innovation optimize the risk management mechanism to provide a safeguard on mechanism for product innovation of direct banks.