Application Of Financial Shared Service Model In Chinese Financial And Insurance Enterprises

With the continuous improvement of the living standards of Chinese people and the continuous development of Chinese and foreign-funded financial insurance companies in China,China's financial and insurance market has great potential and market competition is evident.Since the establishment of China Ping An,in order to quickly seize the market,it has established a wide range of branches across the country and the scale of operations has expanded rapidly.During this period,rising operating costs,declining operating efficiencies,and the lack of control of the headquarter in its subsidiaries have become more prominent in China Ping An.In order to achieve the goal of reducing operating costs,optimizing operating efficiency,and strengthening corporate governance to reduce operational risks,China Ping An took the lead in implementing the financial shared service model and become an industry model.This paper adopts a case study approach and uses China Ping An as a case company to study the application of financial shared service model in China's financial insurance companies.This article begins with the background of the topic selection,literature review,research significance,contents and methods in the introduction section.In the theoretical part,the theory of financial shared service model is summarized and the related four basic theories are introduced,i.e.transaction cost theory,process reengineering theory,flattening theory and scale economy theory.Then the paper starts from the trend of comprehensive finance in China's financial and insurance industry and introduces the development and characteristics of the financial shared service model in the industry.In the case section,this article reviews China Ping An's development history of comprehensive finance,introduces its incentives of establishing financial shared service model,analyzes the construction of its financial shared service model,and evaluates its effectiveness and proposes suggestions for improvement.Finally,this paper comes to its conclusion.The conclusion shows that the financial and insurance companies in our country must pay attention to six aspects in implementing the financial shared service model.First,enterprises must have a certain scale of operation and business processes to meet the standardization requirements;second,preliminary research and consulting work should be done;third,the model selection should be combined with own business characteristics and management needs;Fourth,business process design and continuous optimization should be highlighted in the construction and operation process;Fifth,there must be adequate financial support;Sixth,employee enthusiasm and stability management should be paid enough attention.