Research On The Competitive Strategy Of W Rural Commercial Bank’s Retail Loan Business

With the complex and changeable international environment and the transition of domestic economic,the unstable factors in Chinese financial market are increasing,and meanwhile financial institutions represented by banks are also meeting changes.The traditional development model of banks has to be changed due to the impact of interest rate liberalization,intensifying horizontal competition,Internet finance,etc.As the "food project" of banks,the transformation of credit business is the first to bear the brunt.Among them,retail loan business has gradually become the preferred credit product of financial institutions on account of its advantages of small scale,low cost and decentralized risk.This paper takes W Rural Commercial Bank as an example,uses the theoretical basis of enterprise strategic management,and draws on the relevant literature at home and abroad to investigate and study the competitive strategies that the bank needs to develop retail loan business.First of all,the external environment of W Rural Commercial Bank is analyzed by using tools such as PEST analysis method and five-force model,and it is concluded that the threats it faces mainly include the impact of interest rate liberalization,Internet financial challenges,fierce inter-bank competition,and the enhancement of customers’ bargaining power.At the same time,it faces many opportunities,which mainly include that the tendency of credit environment is getting better,the Internet technologies are developing rapidly,the market demand is growing unceasingly,and the policy support is increasing.The external factor evaluation matrix is established.Secondly,by analyzing the internal environment of W Rural Commercial Bank,it is clear that its competitive advantages mainly include the large scale of intro-county loans,high network coverage,improved overall quality of cadres and employees,and high market awareness within its jurisdiction.The competitive disadvantages mainly include the adverse effects of some historical problems,the low technological element of products,the weak level of risk management,the weak talent attraction,and the limited loan bargaining abilities.The internal factor evaluation matrix is established.Then,through the SWOT analysis method,the feasibility of the three competitive strategies is comprehensively compared,and meanwhile the QSPM matrix is used for strategic selection.It is finally determined that W Rural Commercial Bank should adopt differentiation strategy.Finally,combined with the above analysis,the specific implementation plan to realize the differentiation strategy is formulated: network configuration differentiation,marketing strategy differentiation,product development differentiation,service system differentiation,etc.At the same time,the corresponding safeguard measures are put forward in the four aspects of technology,human resources,assessment and service.W Rural Commercial Bank is one of many county-level rural commercial banks in China,which is representative of rural small and medium-sized financial institutions.Research on the retail loan business competition strategy of W Rural Commercial Bank not only provides reference direction for accelerating the development of W Rural Commercial Bank,but also provides reference opinions for many rural commercial banks in China to develop retail loan business.