China Merchants Bank’s “Flash Loan” allows self-service loans through the Internet

With the improvement of endogenous efficiency and the strengthening of refined management in the development of the banking industry, it is more convenient, safe and efficient. The service experience has become the main means for the banking industry to carry out market competition in the future. This is the banking industry's shift from a product-centered service model to a financial service ecosystem model with user experience and customer service as the core. China Merchants Bank, as the first domestic bank to put forward the goals of retail banking transformation and secondary transformation, and began to build a "light bank" with endogenous capital, strict management, and customer service, has recently made a bolder attempt in product and business layout. .

After half a year of business pilot, China Merchants Bank officially launched “flash loan”. Customers can apply for loans by themselves through the China Merchants Bank mobile banking APP or online banking. Loan application, approval, signing and disbursement are all completed in one step. The process system is automated, without manual intervention, and operates in real time 24 hours a day, 7 days a week. From the electronic business of the entire banking industry to the marketing network, and in the process of deepening Internet transactions, China Merchants Bank's "flash loan" once again led the new wave of financial Internetization in the industry.

"Flash Loan" Big Data Technology Internet Thinking

For China Merchants Bank, after experiencing the deep product and customer market accumulation in the large retail business, it has already been in the banking retail business. It has advantages in market breadth and depth, because bank retail business is a process of market cultivation and customer stickiness maintenance. With the impact of Internet technology and operational thinking, as well as the impact of the Internet financial model on retail business models, the banking industry has begun to adopt a more positive and embracing attitude towards the Internetization of business.

Under the traditional model, it takes at least 3 working days for customers to apply for a loan, submit information to loan approval and disbursement. When applying for a "flash loan", you don't need to submit any loan application materials. You can pick up your mobile phone and achieve real-time online application and 60-second approval for loan in 3 steps.

China Merchants Bank’s flash loan is actually a demonstration of the bank’s retail loans under the Internet thinking and big data credit technology. In the past, retail loans often became a weakness that most banks were unwilling to touch due to offline investigation costs, default costs and incomplete credit information of users. However, China Merchants Bank has a huge customer base and data and product matching for retail business. Based on the existing rich customer base, it can achieve a lightning-like user experience for customer loans through the electronization, automation and digitization of flash loans. The core is that China Merchants Bank uses big data credit technology to quickly improve users' credit material analysis and review processes, and embodies the customer experience in the mobile credit model, which better meets users' needs for fast, convenient and anytime, anywhere loan processing. need.

Cover all aspects of O2O and promote online and offline integration

In addition, another characteristic of retail business is differentiation and personalization, as well as the demand for products and services of different customer groups. satisfy. During the period of retail banking transformation, China Merchants Bank established a differentiated and comprehensive retail product service system to better serve diversified financial needs. Through data integration and application, China Merchants Bank’s “Flash Loan” accurately locates retail customers and proactively markets loans, providing retail customers with fully online self-service retail loans, with credit loan amounts up to 500,000 yuan.

For retail loan customers with loan needs exceeding 500,000 yuan, or users who do not yet meet the approval requirements for "flash loans", China Merchants Bank will automatically allocate loans based on the loan needs submitted by customers on mobile banking. At the 1,300 CMB outlets across the country where customers belong, the outlet's retail credit account managers will quickly come to accept customer loan applications after obtaining customer information, thereby realizing a loan service model that combines online and offline flash loans.

This O2O service model is also a new perspective for China Merchants Bank in its retail business layout. For a bank like China Merchants Bank that has established a complete retail product, channel and service system, on the basis of maintaining customer service and maintaining user stickiness, it is a full use of O2O to provide products and collect demand. The development trend between the existing bank physical branch layout and the electronic banking business. In the future, banking services will be presented in a more complete O2O manner, with the introduction of online services driving the promotion of offline business, and the electronicization of offline business and the migration of customer usage habits driving the upgrade of online services.

Determined to target service-oriented, light banking

China Merchants Bank is currently using a better technology platform and user experience front-end to meet the financial service needs of users in the Internet era. From the previously launched From the perspective of mobile cloud PAD, "one-flash" payment, full-function Yingjingqing online managed banking, online smart supply chain, company card and other services, China Merchants Bank is using comprehensive Internet thinking and technologically convenient business management processes to Think about the banking industry operating model in the next era.

This is also intrinsically consistent with China Merchants Bank’s development positioning at different stages. From the golden age of the banking industry to focus on retail banking business, to the second transformation based on retail business, optimizing customer institutions and improving service content, to the transformation of light banking that is currently being vigorously promoted, all are the impact of China Merchants Bank’s position in the banking industry. At the forefront of development, it is an initiative to promote banking services closer to user needs and meet customer service requirements.

“Flash Loan”, as its name suggests, provides users with fast, safe and efficient credit services at lightning speed, allowing customers to obtain financial services anytime and anywhere. This is also the future transformation of the banking industry. A new idea: Let financial services be seamlessly accessed in a fragmented time. Whoever can obtain these entrances will be more recognized by customers for their services. At least CMB is at the forefront of most banks this time.

What is the direction of retail credit and card business?

The direction of retail credit and card business is as follows:

1. Carry out retail credit business or card business-related products marketing, customer development and maintenance, and cross-selling work. Strengthen post-loan management and follow-up services for retail credit business to improve asset quality.

2. For marketing cooperation projects, strengthen project monitoring and management. Organize and implement marketing promotion activities to promote sales of products related to retail credit business. Feng Lianchen

3. Complete other business-related transactional tasks to ensure the smooth completion of related matters.

The main majors recruited for retail credit and card business include: financial technology (such as software development, data analysis, financial engineering), intelligent technology, electronic information, economic management and law, etc. And I am required to have strong learning ability, communication skills, and teamwork spirit.

What is the direct marketing model of retail loans?

It is direct sales

Without advertising, recruiting one person to serve is actually a disguised pyramid scheme

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But he has a quiet and noisy store. The difference is Jianling.

The development strategy of retail loan business of commercial banks under the condition of interest rate liberalization

Abstract: In the interest rate liberalization In the process, the retail loan business of my country's commercial banks is facing profitability challenges and at the same time unprecedented opportunities. Commercial banks should develop high-yield asset businesses to become "high-yield credit banks" and at the same time carry out institutional innovation to achieve diversified development of retail loan business.

Keywords: Interest rate liberalization, development strategy, retail loans

Since 2014, my country’s financial reform has entered a deep water zone, especially the regulatory changes in the financial field are very active. Among them, the steady advancement of interest rate liberalization and the deposit insurance system have become the two most influential changes.

1. The process of interest rate marketization in my country

From 1996 to 2014, our country has promulgated many interest rate marketization reform measures, and finally ushered in the reform measures at the end of 2014. Substantial breakthrough. On November 21, 2014, the People's Bank of China increased the floating upper limit of deposit interest rates from 1 or 1 times the benchmark interest rate specified in 2012 to 1 or 2 times, and also simplified the term grades of the benchmark interest rates for deposits and loans; February 28, 2015 On May 11, 2015, the central bank once again expanded the floating range to 1 and 3 times; on May 11, 2015, it adjusted the 1 and 3 times to 1 and 5 times. The further expansion of the upper limit of the floating range of deposit interest rates broadens the space for independent pricing of financial institutions, which is conducive to further training the independent pricing capabilities of financial institutions, promotes them to accelerate the transformation of business models and improve financial service levels, and lays the foundation for the eventual liberalization of the upper limit of deposit interest rates. A more solid foundation; at the same time, it will also help fund prices to more truly reflect market supply and demand, promote the formation of a savings structure that is consistent with a balanced level and customer wishes, further optimize resource allocation, and promote healthy economic and financial development.

In addition, on June 2, 2015, the People's Bank of China announced that the "Interim Measures for the Administration of Large-Deposit Certificates" will be implemented with immediate effect.

According to the "Measures", personal deposits of more than 300,000 yuan will be freed from the current restrictions on deposit benchmark interest rates and floating ranges, and will be subject to market-based pricing. On the one hand, the "Measures" are conducive to orderly expanding the scope of market-based pricing of debt products and improving the market-based interest rate formation mechanism; on the other hand, it is conducive to further training the independent pricing capabilities of financial institutions and cultivating the market for retail market participants such as enterprises and individuals. Based on the pricing concept, we will explore useful sources and accumulate valuable experience in order to continue to promote the marketization of deposit interest rates.

In summary, my country's interest rate liberalization process is nearing completion, and it is expected that the deposit interest rate cap will be completely lifted in the second half of 2015 or early 2016.

2. Challenges and opportunities of retail loan business under interest rate liberalization

1. Challenges of retail loan business under interest rate liberalization

Interest rate liberalization makes banks Interest rate spreads have narrowed and profitability has come under pressure. Judging from the 11 listed banks that have published annual reports, the performance of each bank is facing a slowdown in profit growth. Except for Ping An Bank and Shanghai Pudong Development Bank, the year-on-year growth rate of net profit of the other nine A-share listed banks in 2014 all fell to the "single-digit" era. The rapid advancement of financial market-oriented reform requires retail banks to change their traditional business model, which mainly relies on deposit and loan interest rate spreads, and further improve product innovation and risk pricing capabilities.

2. Opportunities for retail loan business under interest rate liberalization

At the same time, interest rate liberalization also strengthens the internal capabilities of retail banks, promotes differentiated competition, and improves service and innovation levels. brought unprecedented opportunities.

(1) Interest rate marketization reform, bank loan business transformation

Under the economic transformation situation, the risks of loan companies have increased; in the context of financial reforms represented by interest rate marketization , direct financing channels for large and medium-sized enterprises have become more and more perfect, and bank profit margins have also been greatly reduced.

Banks should use the "new generation asset-liability management strategy" as a method to increase loan returns, reduce capital costs, and achieve loan business transformation. It is necessary to establish an insight into the risk-adjusted loan income and capital consumption of each customer group, as well as the cost of different types of deposit financing, and proactively select the retail banking asset business structure that best suits its own situation, and develop high-yield retail loan business, mainly Including small and micro enterprise loan business, personal operating loan business, consumer loan business, and credit card business.

(2) The slowdown in the growth of personal deposits has restricted the scale of banks’ personal loans

The advancement of interest rate liberalization has led to the loss of deposits and rising capital costs, which have become unavoidable problems for banks. At present, , most banks face the problem of attracting deposits from stable and low-cost funding sources.

Since 2014, the bank funding situation has intensified. The loan-to-deposit ratio of many state-owned banks and joint-stock banks is close to 75%. Among them, the proportion of retail deposits of the four major banks is basically higher than 45%, but the average of joint-stock banks is only 20%. The slowdown in the growth of personal deposits is increasingly limiting the scale of personal loans.

(3) The trend of "de-banking and de-banking" has intensified, and the challenges of retail credit business have escalated

With the advancement of interest rate liberalization, bank capital costs have increased, and wealth management products The popularity and range of options continue to expand, and the process of "depositing" the structure of personal financial assets will continue into the next 10 years. Although less than 30% of the funds of most banks in China come from retail deposits, there is no doubt that the competition for retail deposits will become more intense in the future. The market's "real" deposit interest rates have risen significantly. The actual benefits brought by these costly funding sources are extremely limited, and retail banks' profit margins will continue to be hit.

(4) There are structural differences in the scale of new credit, and the extensive circulation model is difficult to sustain.

Traditional retail banking business expansion has always focused on deposits first, with a single business structure. Under the new development situation of retail business, banks' retail business should follow a differentiated development path and adjust the retail business structure and corresponding resource investment to match changes in customer structure and the overall environment. Retail banks should take the new retail loan business with high development potential and large profits as an entry point to find new profit growth points and promote the optimization of the profit structure of commercial banks.

3. Development strategy of retail loan business under interest rate liberalization

1. Product strategy: develop high-yield asset business and become a “high-yield credit bank”

Retail and small and micro enterprise loans will become one of the growth engines of China’s retail banking industry revenue in the next five years. The product strategy for retail banking business transformation is to become an excellent “high-yield credit bank” and drive growth with excellent retail credit products. And bind customers, while risks are controllable, continue to optimize the loan structure, increase loan returns, and make up for the profit pressure caused by rising capital costs.

(1) Expand the territory and innovation of consumer finance with credit cards and Internet finance

In the current credit market, individual customers have become the main customer group. From the perspective of credit card consumer credit business, consumption Finance has entered a "golden development period", and the credit card installment business's rich consumer credit options, convenient multi-channel processing and process optimization have enabled the customer base to continue to expand. The traditional consumer loan business is gradually being replaced by the credit card installment business. In the future, the credit card installment business Business will increasingly occupy the high ground of consumer finance. Consumer finance business should find differentiated routes under tangible discounts, broaden revenue channels, and then improve the overall profitability of its business.

(2) Use professional technology to innovate micro-loan finance and transform from lending to comprehensive finance

In 2014, the growth rate of small and micro credit business of various banks was approximately 10%-20%. The growth rate has slowed down significantly compared with more than 50% in the previous two years. First of all, my country's economy was in a downward cycle in 2014, and orders from small and micro enterprises generally decreased by 20%-30%, resulting in a shrinking of effective credit demand; secondly, the risks of small and micro enterprises continued to be exposed, and non-performing loans continued to rise; finally, more and more institutions Entering the small and micro market, competition intensifies, and banks’ share of the “cake” becomes smaller accordingly.

In recent years, various banks have focused on small and micro enterprise business. While small and micro enterprises have received unprecedented attention, their market share has been continuously diluted. Under the new situation, it is difficult for commercial banks to continue to rely on the profit model of small and micro credit business to cover risks with price and scale.

At the same time, with the rapid development of information technology, especially the rapid popularization of the Internet and mobile Internet technology, the traditional business methods, business expansion models, employee management and production processes of small and micro enterprises have also undergone significant changes. . Commercial banks must keep up with the trend of the times and strengthen the integration of finance and technology.

Therefore, in the process of developing small and micro credit business, banks not only need to pay attention to the "volume" of small and micro business, but also need to tap the added value of small and micro business, from simple "micro credit" to "micro credit". "Finance" development, by tapping the needs of small and micro customers for cross-selling, innovating micro-loan finance with professional credit technology, effectively covering small and micro business risks, and maximizing the value of small and micro customers.

2. Institutional strategy: Institutional innovation to support the diversified development of retail loan business

(1) Build a distinctive franchise system and enhance professional capabilities

Build a retail loan business Professional operating agency model, such as setting up small and micro financial centers, personal loan centers, personal loan approval centers, credit card centers, consumer credit centers, auto finance centers, etc. By establishing a business exclusive system, we professionally provide review, approval, loan and post-loan management operations for retail credit business, improve loan review efficiency and risk control; and carry out full-time marketing promotion and business operations.

(2) Open up green channels and build platforms to acquire customers in batches

Actively explore external cooperation models and carry out retail loan business. By building a cooperation platform and opening up green channels, we can achieve the effect of acquiring customers in batches. First, cooperation with subsidiaries within the bank group, especially non-financial subsidiaries in areas related to household consumption and non-financial investment; second, a marketing system that cooperates with third-party institutions, one of which is real estate developers, car dealers and large companies. The second is consumer merchants such as commodity shopping malls, the second is intermediaries such as real estate and study abroad institutions, and the third is various credit platforms such as governments and associations.

(3) Enhance business pricing capabilities, improve approval efficiency and risk control levels

Retail bank loan business is tilted towards small and micro businesses, consumer finance, credit cards and other fields, and loan pricing capabilities should be improved. To improve profitability, the level of risk control and comprehensive customer contribution should also be improved.

Small and micro businesses should establish an independent and differentiated risk pricing system.

In terms of loan interest rate pricing, personal credit business should also focus on adopting flexible pricing strategies based on different customers, improve the internal risk assessment system, and build an effective commercial loan interest rate pricing mechanism.

(4) Establish a credit model, strengthen vertical management and credit risk management

Establish a retail loan credit model, improve small and micro enterprise credit and personal loan management systems, and enhance corporate customer credit ratings and individual customer credit scoring functions to shorten the approval process.

(5) Streamline business processes and improve service efficiency

Make full use of mature technologies to design business processes that meet the characteristics of individuals and small and micro customers. In terms of small and micro businesses, we will streamline business processes, improve service efficiency, and cultivate micro-loan brands. In terms of consumer loan business, business process reengineering should be oriented towards customer value and construct value-added business processes.

References:

[1] Zhao Zhihong. How commercial banks respond to interest rate liberalization [J]. The Banker, 2005, (1)

[2 ] Huang Jinlao. Interest rate marketization and commercial bank risk control [J]. Economic Research, 2001, (1)

[3] He Yong. Research on loan pricing issues in the credit business operation of my country's commercial banks [J] ]. Journal of Shanghai University of Finance and Economics, 2008, (2).

[4] Jiang Chun, Liu Chunhua. Interest rate marketization in developing countries: Theory, experience and enlightenment [J]. International Finance Research, 2007 (10).

How to market bank retail business

In fact, marketing is all the same.

First of all, you must be familiar with your bank’s retail products, including similar products of other banks, their differences, advantages and disadvantages;

Secondly, you must know the goals of the products Customer groups;

Thirdly, I am good at breaking the ice by rolling out some products that are better marketed, such as credit, credit cards, POS machines, etc., and then go deep into other industries to break the ice;

Finally, establish a customer relationship management register to spread the effect, let customers introduce customers, and promote your own brand before the sale.

This concludes the introduction to retail loan marketing and retail loan marketing experience sharing. Have you found the information you need?