Research On The Retail Business Competition Strategy Of Y City Commercial Bank

Along with the economic taking off,the Chinese people are realizing the steady accumulation of wealth,and the middle class is rising,resulting in a huge demand for financial services,since the reform and opening up.At the same time,with the continuous progress of financial disintermediation and interest rate liberalization,the interest margin of the main profit space of the traditional banking industry has been continuously compressed,which promotes the wealth management and retail business fields to gradually become an important battlefield of inter-bank competition.Since the 21st century,the retail business has always been the main source of profit of commercial Banks,the western developed countries commercial bank retail business accounts for nearly 50%,the old and new kinetic energy conversion,the supply side reform trend,China’s banking industry began to speed up the retail business transformation,with financial technology innovation as the foothold,promote the reform of retail business areas.Small and medium-sized banks are limited by actual factors such as enterprise scale,research and development ability and talent shortage,with weak product research and development and data processing ability and poor scale effect,showing great disadvantages in the transformation and development of retail business.At present,the retail business revenue of small and medium-sized banks is generally less than 20%,and a considerable part is less than 10%,which is a significant gap with large banks.This paper studies on Y city commercial bank,which was established in November 1997 and is a typical small and medium-sized bank.Y city commercial bank began to transform its retail business in 2017,but in the transformation process,it did not design a clear competitive strategy based on its own conditions,and simply followed the development mode of mainstream banks,resulting in poor transformation effect and the development speed of retail business behind that of similar city commercial banks.This paper builds an analytical framework with the modern enterprise competitive strategy theory and methods,obtains the relevant first-hand data through the interview method,questionnaire survey method and other field research methods,and analyzes the problems existing in the competitive strategy management of the retail business of Y city commercial bank.According to the research,the main problems are unclear competitive strategy of retail business,blind transformation of retail business,and lack of supporting policy support for the development of retail business,which shows that Y city commercial bank is urgent to formulate scientific competitive strategy.Further,through a comprehensive external environment and internal environment analysis,combined with EFE,IFE,SWOT,QSPM and other qualitative and quantitative analysis tools,and finally draw the research conclusion that Y city firms should adopt the differentiated competition strategy.In order to ensure the implementation of differentiated competitive strategy,specific and operational strategy implementation means are put forward from the four dimensions of product,customer,channel and service,and the safeguard measures for the implementation of differentiated strategy are designed from the aspects of human resources,information technology,risk management,financial management and corporate culture.Retail business is an important position of modern commercial banks competition,and small and medium-sized banks are excluded.This paper analyzes and designs the competitive strategy of Y city commercial bank with the modern competitive strategy theory and method,which can help the bank to clarify the competitive ideas as soon as possible,find the right positioning in the industry competition,and implement the differentiated competition through the implementation means of the landing strategy,in order to change the adverse situation of the poor performance of the retail business transformation.At the same time,it can also provide an effective reference for the retail business transformation of similar small and medium-sized banks.