Intelligence and Fintech
Corporate banking credit business transformation under ‘new normal economy’ in China banking industry
On the background of increasingly competitive environment of traditional banking industry, this report analyzes major challenges to banking corporate credit business, indicates the focus of operation management, defines areas for improvement and provides solutions and countermeasures based on rich consulting and implementation experience of Deloitte China FSI management consulting team. It aims at seeking potential opportunities brought by digital transformation, helping banks respond to challenges and achieving growth.
Viewpoints / key findings
According to early 2017 Wind Info, the average profit growth of the big four state-owned banks were less than 1% by the third quarter of 2016. The increasingly competitive environment and strict regulatory policy have revealed asset quality problems and profitability issues of credit business, which have become increasingly prominent as credit business is the mainstay business of commercial bank. Thus banks need to transform from the extensive management to fine management of credit business.
This report analyzes the management transformation of corporate credit business from the following aspects:
- Main challenges: With the rapid development of emerging technology, Internet finance is becoming the future development trend of financial industry. Under the condition of interest rate liberalization and accelerated financial regulatory reform, Chinese banking faces four major challenges: interest rate liberalization reform, traditional credit business market recession, corporate customer churn and the urgency of improving asset quality and profitability;
- Areas for improvement: In regards to the aforementioned challenges, Deloitte China FSI management consulting team suggest to improve credit business management in the following four aspects: 1) customer management, 2) product innovation, 3) risk management and control, and 4) corporate credit business management. So that banks will transform from extensive management to fine management of corporate credit business;
- Solutions and countermeasures: 1) Identifying three major development trends of banking corporate business in the digital age; 2) Exploring the specific implementation of digitization in the banking industry; 3) Establishing basic capacities of corporate credit business transformation.