New ways, new models

Although SMEs play a significant role in the domestic economy, financing hardship has always been the problem for a long time without solid improvement. In the last two years, based on the domestic commercial banks’ concerns on the asset structuring and business transformation, they have paid more attention to SME business development. However, commercial banks are facing various challenges in the course of SME business development, such as internal resources reallocation, exploration of business models suitable for the SME business characteristics and operational system optimization. The whitepaper begins with the current status and causes of the transformation of banking services for SMEs; and then discusses the challenges and solutions against commercial banks during the business development.