The Competitive Strategies of the consumer banking

• Main Authors: Huang, Cheng-Hsuan, 黃正炫
• Other Authors: Goo, Yung-Chia
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/85264239688984872930

碩士 === 國立臺北大學 === 企業管理學系碩士在職專班 === 89 === Given an opening up to the financial market, the war in the banking industry is raging on. With an ever-increasing weighting of direct finance and highly homogeneous services provided by banks, all are scrambling to win the hearts of clients’ by proactively devising distinctive consumer products to create competitive edges for their market share and to establish their core competencies to face competition. It is foreseen that consumer banking will play an ever-important role in the financial service industry. To stand out among competitive counterparts and have a strong presence in this field, the bank itself has to devise strategies that outperform its competitors’. Objectives of this article are as follows: 1.To analyze features of consumer banking. 2.To probe into the competition strategies of banks’ in consumer banking. 3. To discuss the bank’s competition strategies’ relevance to its operational performance. This article is conducted by in-depth interviews and questionnaires. In order to find out the development features of consumer banking domestically, subjects chosen for the research are privatized banks that operate distinctively in consumer banking, such as China Trust Commercial Bank, Taishin International Bank, Fubon Bank, Bank SinoPac and E-Sun Bank. We will discuss and analyze these studied banks’ competition strategies in consumer banking through interviews and questionnaires. Then, based on relevant literature, theories and actual practices of banks studied, the distinction of employed strategies is discussed. Advantages/disadvantages of each bank are analyzed and compared within the chosen group comprehensively as well. Moreover, the analysis result is further compared with Kotler style and with which four strategy styles employed by the five banks are interpreted as leadership, challenger, follower and niche marketing. In the end, it discusses the strategy’s relevance to the bank’s operational performance. The conclusions are reached below: 1.Features of domestic consumer banking are: on economy scale, credit card business and investment portfolio being main products, business specialized, emphasis on post-loan management, centralized operations, standardized credit checking and tele-marketing. 2.Each competition strategy employed by the studied bank is a result of an interactive process of a series of dynamic strategies. The bank’s market position and its retention of niches correlate with its rivals. To eschew the vicious circle of price war and quality competition, the bank itself must build up its marketing niche based on its core resources. 3.The propriety of the employed competition strategies has a lot to do with operational performances. To maintain good performances, the bank must uphold its competitive edges. To this end, the bank needs to keep its marketing niche in consumer banking. In that sense, it has to consistently improve efficiency and quality of consumer products and be original. It needs to attend to the client’s request and create added values for its products as well.