A Case Study On The Transformation Of Bank Of Beijing’s Retail Business

In recent years,China’s financial market mechanisms has been constantly ameliorated because of a salutary lesson and innovation and promote the marketization of interest rates and speed up the pace of removing financial intermediation.For commercial banks,the past profit growth model has brought the dilemma of asset quality pressure and declining profitability.Therefore commercial banks cannot continue to rely on the past growth model.In addition,the swift development of the Internet and the easing of access conditions for foreign banks have led to increasingly fierce horizontal competition and the decline in the quality of bank customers.So commercial banks have to explore new profit sources,actively adjust business structure and find new ideas for transformation and development.Retail business is regarded as a key development direction by domestic commercial banks because of its small and decentralized amount,low capital consumption,strong resistance to periodicity.The difference from large commercial banks is that most urban commercial banks have their own weaknesses.So they need to explore their characteristic path in the process of retail business transformation.Bank of Beijing started the retail business transformation in 2007.Its retail transformation process is at the forefront of urban commercial banks,and has won the award-China’s best urban commercial retail bank for many years.Therefore,through in-depth research on the transformation of Bank of Beijing’s retail business fully tap its experience in the transformation and development of retail business,which can be used for reference for the transformation of retail business of other urban commercial banks.By reviewing the process of retail business transformation of Bank of Beijing,this paper summarizes and analyzes the motivation,measures and effects of retail business transformation of Bank of Beijing.It is found that the motivation of retail business transformation of Bank of Beijing mainly comes from the change of macro environment,the change of residents’ wealth,the influence of financial technology and its own development,which promote the transformation of retail business to varying degrees.Improving and innovating the retail business transformation of Bank of Beijing mainly from channel construction,product system,marketing mode and financial technology.Compared with Bank of Shanghai,Bank of Nanjing and Bank of Jiangsu,Bank of Beijing has great leading advantages in structure of retail business,ability to manage retail customers,profitability and risk prevention.In the process of retail transformation of Bank of Beijing,the development effect of consumer loan business fall behind,the development speed of retail deposit business is slow,and the quality of employees needs to be strengthened.Finally,the enlightenment from the case mainly includes the following points,including establishing a clear strategic positioning in combination with their development reality;grasping the opportunity of reasonable transformation and creating advantage;increasing investment in financial science and increasing independent researching;balancing the development of retail business and improving profitability;strengthening the construction of intelligent risk control and improving risk management;broadening the talent base and improving the quality of services.The enlightenment can effectively help city commercial banks explore the transformation direction of retail business in the future,and bring feasible transformation strategies and method.