Research On The Competitive Strategy For Asset Management Business Of L Bank

L bank is a national joint-stock commercial bank with its head office in shandong province.In recent years,its asset management business has been continuously expanding through the innovative research and development and marketing promotion of financial products,making outstanding contributions to the bank’s profit creation and reputation improvement.With the continuous improvement of national economy and the gradual increase of disposable income of urban and rural residents,people’s concept of investment and financial management is constantly improving,which makes the capital management and financial services of Banks have a broad prospect for development.However,the rapid development of capital management business is accompanied by the increase oft competitive pressure.At the same time,under the constraints of a series of strict financial policies and systems in recent years,the capital management and financial business of Banks under the new regulatory environment is bound to face transformation.At the same time,due to a series of management problems such as unclear business development strategy and unreasonable decision-making mechanism of directors and supervisors in L bank,the gap between the business indicators of the whole bank and the standard Banks of the same bank is getting larger and larger.In addition,L bank has a small number of physical branches and weak customer groups.which makes it difficult for it to carry out asset management business in accordance with the original mode as it lacks sufficient competitiveness and discourse power in the ranks of joint-stock commercial Banks.Therefore,it is of great importance to explore a competitive strategy suitable for the development of L bank’s asset management business.According to the comprehensive analysis of L bank,it faces the following externalopportunities:sustained,healthy and stable development of national economy;The policy orientation strongly supports the accelerated development process of the financial banking industry;The disposable income of urban and rural residents and the scale of social wealth increased significantly.The transition period set by the"new rules on asset management"and"new rules on financial management"is designed to help Banks achieve smooth transformation.The regulation clearly stipulates that non-financial institutions shall not issue or sell assets management financial products;The policy orientation and transformation requirements of regulators make Banks face a more fair and compliant competition environment.With the development of fintech,Banks can make full use of the Internet,cloud platform and big data to improve operational efficiency.External threats include:the new regulatory environment and downward pressure on capital markets;Breaking the industry trend of rigid payment will lead to the loss of customers with low risk preference.The homogenization of financial products of Banks in the whole market is quite serious.Strong bargaining poxwer of downstream customers;Under the economic globalization,foreign Banks are rushing in to seize market share.The impact of fund,insurance and trust asset management products and Internet finance is increasing.Upstream competitors are too strong to compete;Customers will have higher requirements for the bank’s comprehensive management ability and products and services.L bank has the following internal advantages:the r&d team has certain prof-essional quality and execution ability;Good control of liquidity risk and operational risk;The business branches of the bank keep expanding;Good at using hot marketing and other marketing strategies;Good at maintaining high price competitiveness;Be good at building and enhancing the brand influence and popularity of bank and business products through media.The organizational structure related to the asset management business is relatively perfect;Customer service for financial services consulting more standardized.Its internal disadvantages are as follows:the product lacks independent innovation and differentiation;Unreasonable product structure;Lack of control over credit risk;Weak ability in marketing and channel development;Target customer groups are not segmented;The appraisal mechanism and the incentive mechanism have certain irrationality;Compared with other Banks,there is a big gap in technology support.The process of compliance review is inefficient.Through the analysis of internal and external factors,combining theory with practice,and using a variety of tools and models,the paper comes to the conclusion that the capital management business of L bank should choose the differentiation competition strategy,so as to obtain the competitive advantage in the increasingly fierce market environment.At the same time,the implementation and safeguard measures of differentiated competition strategy for the asset management business of L bank are designed comprehensively.From the perspective of practice,this paper hopes to explore a road suitable for Banks to improve the core competitiveness of asset management business in the new environment through analysis and research.This conclusion will be of some practical significance to the overall trend of asset management business of China’s banking financial institutions,and has certain reference significance to the development of asset management business and strategic management of Banks.