Research On The Transformation And Development Of Retail Business Of Commercial Bank With The Background Of Internet Financial

With the continuous changes in the business management model and development model of commercial banks,retail business has gradually become the focus of inter-bank competition and an important support for value creation.It plays an important role in obtaining stable and low-cost funding sources,balancing the balance between public business and inter-bank business.With the shift of economic growth,the advancement of interest rate liberalization,and the rapid breakthrough of online and offline cross-border competition,the financial risks of bank retail business have been fully exposed.The extensive growth mode,which mainly depends on the expansion of retail asset scale,is difficult to maintain.The business model of depositing and loaning faces challenges,and the race-type competition model,which mainly relies on outlets and personnel is unsustainable.In the past few years,the Internet has developed rapidly.The infrastructure,user scale,and technical supporting have undergone tremendous changes,bringing unprecedented opportunities for the development of commercial banks' retail business.The rapid penetration of Internet finance has made the internal and external economic environment which the development of retail business of commercial banks is facing increasingly complex,and the traditional strategy is slightly weak.The channel advantages,price advantages,and scale advantages that depended on survival in the past seem to be far from meeting the market.Commercial banks face profound changes and challenges,and need to take advantage of the situation to accelerate the transformation of retail business in order to achieve long-term and sustainable development.In the context of internet finance,the development of banking retail business changes rapidly in recent years.All banks are focusing on transformation plans of exploring retail business and the point of future business structures' adjustment.Based on theories of financial innovation,corporate reengineering and customer relationship management,this article analyzes the transformation direction,specific path,and difficulties encountered during the transformation of retail business of commercial banks under the background of Internet finance with the reference to related research of previous generations.Combining a case study of “King of retail”-China Merchants Bank's retail business transformation,and then put forward corresponding countermeasures.Firstly,defined the concepts related to Internet finance and banking retail business,and clarified the general classification of which.At the same time,the relevant theoretical foundations involved in the retail business transformation process are introduced to provide a basis for further discussion.Secondly,it analyzes the impact of internet finance on the retail business of commercial banks from twoaspects.On the one hand,the rapid development of internet finance will help the retail business to expand business processing channels,reduce business processing costs,facilitate the acquisition of customer resources and improve service quality,and bring development opportunities for the retail business;on the other hand,it will weaken the intermediary role of commercial banks,impact the bank's customer base,intensify market competition,and brings challenges to the development of retail business.Thirdly,in the face of the challenges of internet finance,the retail business of commercial banks can be transformed from four directions: business,channel,marketing and transaction.By changing the business model,actively developing retail intermediate business,expanding electronic channels,and building open cooperation platforms,it may realize lightweight business,channel integration,scene-based marketing and transaction intelligence.Through analysing,it is found that in the process of bank retail business transformation,there will be problems such as imbalances in business and customer structure,barriers to talent and technology,backward management,difficult multi-channel construction,and poor customer experience.Finally,taking China Merchants Bank as a case,analyzing the reasons and process of its transformation,summarizing successful transformation experience,and then countermeasures and suggestions are proposed from the three aspects of government,banking and society.For example,the government should optimize the development environment,bank should strengthen self-construction,society should actively assist in transformation.