Modern commercial bank operation model:
Achieve eight unified controls:
1. Integrated customer service system
Including integrated services Channel management platform, teller front desk system, self-service terminal front desk system, telephone banking front desk system, Internet front desk system, etc. Each front-end system communicates with the integrated business processing system through the integrated service channel management platform.
The system is required to provide customers with all-weather, all-round, personalized banking services. 1. All-weather service, that is, regardless of whether the bank where the customer is located is during working hours or non-working hours, as long as the customer needs it, he or she can handle business and obtain other services through the customer service system. 2. All-round service, that is, customers do not need to go to bank branches. They can handle almost all banking services by phone or online, including traditional businesses and various new derivative businesses and consultations. Even services such as searching bank branch block maps are not required. can be satisfied. 3. Personalized services can provide customers with "tailor-made" services.
2. Integrated business processing system
Including all business processing subsystems such as accounting, credit (or asset business) management, funds, and foreign exchange.
The system requires:
1. Comprehensive functions and business integration.
2. Unified accounting, unified account management, and unified customer information management.
3. Integration of local and foreign currencies.
4. The structure is highly adaptable and easy to carry out business innovation.
5. Mainly for transaction operations, supplemented by accounting.
6. High degree of automation, business processing is interconnected, and each subsystem can exchange data and information and interoperate functions.
7. Highly networked, the connection between the business processing system and other parts of the computer application system is highly networked.
8. High security.
9. System platformization.
An important subsystem in the integrated business processing system is the credit (asset business) management system. Since this is currently a weakness of domestic banks, this report intends to focus on it.
1. Functional objectives of the credit (asset business) management system: to achieve eight unified controls and provide five management services.
(1) Achieve unified control over the credit lines of all customers, including the asset business of corporate customers and the asset business of financial customers; including all types of wholesale business, including consumer loans and other personal business.
(2) Achieve unified control over the total credit limit and individual business limit of each customer.
(3) Achieve unified control over the asset business of all operating assets and contingent projects. Including self-operated loans, discounts, inter-bank financing, operating investments, offshore loans, international trade financing, various types of credit, consumer loans, overdrafts and various types of guarantees, acceptances, issuances, loan commitments, etc.
(4) Achieve unified control over credit in different currencies. All currency businesses must be placed under the same credit limit.
(5) Achieve unified control over credit objects. The credit recipient must be a legal person, and credit is not allowed to branch customers who do not have legal person qualifications. All group customers, including group companies and their subsidiaries and affiliated enterprises, must also be controlled uniformly. Some also need to determine the country (region) quota of group customers.
(6) Achieve unified control over credit entities. That is, the bank determines a management department or committee to uniformly review and approve credit extensions to customers, and different departments cannot grant credit to the same or different customers (or business types) respectively.
(7) Achieve unified control over the authorization of all business operators
(8) Achieve unified control over all business data. This requires combining business processing with accounting processing.
Provide five management services:
(1) Provide responsibility tracking services. The system implements the responsibilities and responsible persons for asset management and operation through the records of business approval, execution, and management activities and the identification of responsible persons.
(2) Provide early warning and monitoring services for credit management.
Through vertical and complete recording and control of asset business execution and operation processes, the system enables credit policies and rules and regulations to be thoroughly implemented into the entire process of asset operation. This enables the asset management department to directly and proactively monitor asset operations, rather than passively listening to selective reports from lower-level banks.
(3) Provide decision analysis services. The system can perform many analyzes through subsystem software, such as: asset portfolio analysis, business types, customer profit analysis, risk rating analysis, asset classification analysis, etc., and can accurately summarize various business reports, and directly provide Asset business decisions provide direction and predetermined goals.
(4) Provide customer information summary and report automatic generation services. The system automatically collects all kinds of data and information and shares it with the whole bank through the query function; it automatically generates various reports inside and outside the bank to improve work efficiency.
(5) Provide operating tool software services. Deutsche Bank Hong Kong Branch has nearly 10,000 tool software applications on personal work computers.
2. Credit (asset business) management system composition: The asset management system is an organic combination of many subsystems. Although there is a loose relationship between the subsystems, they are generally managed by a system that can control each subsystem. online system to achieve overall effectiveness. There are two types of online systems: one is connected to various subsystems through the credit line system, and the other is connected to the subsystems through the credit risk management computer online system. These subsystems can be roughly divided into two categories: operation subsystems and analysis and summary subsystems, such as: bill payment system, loan system, loan pricing system, customer information system, credit system, inquiry system, loan classification system, rating system, customer profit Reporting systems, internal transfer systems, etc.
3. Data warehouse system
The data warehouse system is the core system for financial institutions to implement customer relationship management (Customer Relationship Management). It is also the source of competitive advantage in the financial industry and the main application business. The departments are credit card department, credit department, marketing department and retail business department, etc. The application areas are customer-centered distribution channel management, customer profit analysis, customer relationship optimization and risk control.
The practice of using data warehouses as a means of personalized services has achieved remarkable results in the financial industry in developed countries and regions. For example, First American uses annual interest, annual fees, credit lines and different insurance types. It segments customers into 750 types, provides personalized services, and becomes the bank with the fastest annual business growth rate in the United States.
In general, the role of the data warehouse system in the operation and management of commercial banks is reflected in the following aspects:
1. It helps banks understand their own operating conditions.
A survey of U.S. commercial banks by "American Banker" magazine showed that 30% of U.S. commercial banks can accurately say who is their most profitable customer, and 20% of U.S. commercial banks can Explain clearly within 10 minutes how many banking products are used by important bank customers, and the comparative advantages of these banks all benefit from the use of efficient and advanced data warehouse and data mining technology. This is evident from the helpful role of data warehouse and data mining technology in commercial bank operators.
Data warehouse system structure diagram
Data warehouse management tools
Extraction, cleaning, conversion
Metadata database
Data modeling tools
Comprehensive
Data
Current
Data
Historical
Data
User query tool
C/S tool
OLAP tool
DM tool
Relationship Database
Data files
Others
2. Help banks understand customer situations, develop new products, expand new markets, and obtain "deep benefits."
3. Contribute to commercial bank operation management and decision-making support.
4. Contribute to risk prevention for commercial banks.
Data warehouse system (DWS) consists of three parts: data warehouse, warehouse management and analysis tools (see the figure above). Among them, subject-oriented multidimensional data warehouse technology is the core technology for establishing high-quality data warehouse. Data Warehouse has five major characteristics.
1. Subject Oriented means that the information in the data warehouse is organized by subject. For example, institutions, customers, accounts, exchange rates, etc. in a bank are a number of corresponding subject areas. , unlike the traditional operational environment that organizes data according to business applications, it provides the possibility for analysis and decision-making from different levels;
2. Integrated (Integrated) means that the information in the data warehouse is not processed from each business What is simply extracted from the system is important information about the entire bank that has been processed, summarized and organized by the system. However, during the development process of each application system in the traditional operating environment, the defined data will inevitably be inconsistent to varying degrees.
3. Timely (In time) means that the information in the data warehouse can be processed automatically and timely through the system before entering the warehouse.
4. Stable (Non-volatile) means that the data in the data warehouse mainly serves information analysis and management decision-making and needs to be accumulated over a long period of time. The operations performed on the data in the data warehouse are usually large amounts of loading. and access, with very little modification in the general sense.
In traditional operating environments, the data key values ??in the database generally do not have a time element, and the data storage time is usually 60 to 90 days, while the data key values ??in the data warehouse always include a time element. The data retention period is usually 5 to 10 years, providing a long-term data basis for historical comparison and trend analysis.
5. Assemblability means that the "containment" and "subordination" relationships of data in the warehouse can be flexibly changed according to actual needs.
From the above characteristics, we can summarize three outstanding advantages of modern data warehouse:
1. The data information is unified in logic and mode, which can ensure the security of important data of the whole bank. Consistency and authority can greatly reduce the time and energy spent by various departments in searching and organizing data.
2. The data is designed according to themes and has multi-dimensional characteristics to facilitate meeting different user requirements. For example: a deposit business can be divided into several categories according to themes such as "time", "customer", "amount", "term", "interest rate", "handling bank", "handler", etc., and each category is Several "dimensions" can be designed as needed. For example, "customers" can be divided into several subcategories according to "characteristics" such as age, gender, occupation, region, education level, etc. In this way, banks can conduct in-depth analysis of changes in deposits from different angles.
3. Data is “assemblyable”. For example: a certain branch was originally affiliated to Branch A, but later became a branch of Branch B due to changes in organizational structure. In modern data warehouse management, all the historical data information of this branch in the data warehouse can be obtained with just a click of the mouse. It will automatically transfer from the person under branch A to the person under branch B. Similarly, the system can also automatically handle changes in the "subordinate" relationship of a certain accounting account.
4. Analysis and management decision support system
The analysis and management decision support system consists of subsystems such as enterprise strategic management (SEM), customer relationship management (CRM), and conventional business management (SBM). constitute.
1. Enterprise strategic management support (SEM). This system is a management technology tool involved in implementing enterprise strategic management using IT technology. Its main supporting tools include:
(1) Profit Analyzer: through fund transfer pricing software (fund transfer pricing, FTP) and cost analysis software [including actual cost accounting] , position cost analysis (unit cost accounting), business cost analysis (activity-based accounting)] to implement analysis functions.
1) Fund transfer pricing software is software that specializes in managing the internal flow of funds within a bank, including the calculation of spreads and interest rate risk allocations when funds flow between departments. It helps managers determine the account levels of assets and liabilities. The results and methods can also be interconnected with the risk management and strategic analysis systems for the distribution of differences and interest rate risk-related interest rate gains among relevant departments. For example: the deposit department takes a deposit and allocates it through the fund management department, and then the credit department uses the money. The current domestic management ideas and methods are to include them in the unified profit and risk account of the bank for accounting, while the fund transfer pricing software This business spread and risk will be scientifically allocated to the three departments of deposits, fund management and credit, thereby making the responsibilities and rights among the internal departments of the bank more clear.
2) Cost analysis software connects accounting, statistics and account-level data to form comprehensive profitability information on customers, products and business units; supports multiple cost analysis and cost allocation, after risk adjustment performance, capital allocation, capital (asset) return rate and other methods based on activity costing. Cost allocation and profitability analysis can be applied to accounts and summary tables as well as individually to each account, customer and transaction. Costs and profits can also be calculated to departments, positions and people within the bank.
(2) Risk analyzer: including gap analysis (GAP analysis) in asset liability management, cash flow analysis and interest rate sensitivity analysis in market risk analysis, credit risk analysis (credit -risk exposure) etc. The risk analysis system uses account-level data for asset and liability risk management. The risk of each loan, deposit, investment and securities can be estimated and simulated individually or jointly using deterministic and stochastic methods; advanced cash flow simulation tools allow for what-if scenarios and can conduct interest rate sensitivity risk analysis, asset and liability analysis Balance sheet forecasting and VaR measurement valuation. In addition, the risk analysis system can automatically use data information from other related application systems, such as data from the fund transfer pricing system and strategic analysis system.
(3) Strategy Analyzer. The strategic analysis system uses the results of profit analysis and risk analysis for strategic planning: it conducts real monitoring of bank operations, and the monitoring results are reflected through a performance weighted scorecard (balanced scorecard), which contains the main indicators of bank operations (such as financial indicators). , risk-profit ratio); make simulated monitoring and management decisions on the operation of various asset portfolios based on the market, business volume and risk characteristics at that time.
2. Customer relationship management
In most banks, marketing, customer service and back-end support are carried out separately, which makes it difficult for all links within the bank to cooperate. Treat customers. The concept of Customer Relationship Management (CRM) requires companies to completely understand the entire customer life cycle, provide a unified platform for communication with customers, and improve the efficiency of employee-customer contact and customer feedback rate. Therefore, through customer relationship management, banks can achieve an organic combination of marketing, customer service and back-end support.
- CRM is a solution and a human-computer interaction system that can help companies better attract and retain customers, especially when communicating with customers frequently and requiring high customer support The banking industry will receive significant returns after adopting CRM. The contents of CRM include: customer analysis, bank's commitment to customers, customer information exchange, retaining customers with good relationships and customer feedback management, etc.
The CRM system helps banks know who their good customers are and retain them by introducing concepts such as active marketing, cross-selling, profit analysis, and personalized services. The main tools are: ①Customer classification, using multiple characteristics to classify customers to help product market positioning; ②Customer overall profitability analysis; ③Customer group; ④Single customer profitability analysis; ⑤Marketing activity design and operation tracking, etc. .
Through system data analysis, we can know which customers and products are profitable, which ones are profitable, which are profitable, which are not profitable; with the help of advanced algorithms, we can track and identify the relationships between individual accounts, customers and families, and know which accounts and customers There is a "nepotism" relationship; you can also know which customers have potential development advantages, so that the bank can carry out targeted promotions and market development, etc.
3. Regular business management (SBM) refers to the basic business management involved in a bank as an ordinary enterprise. The main contents include financial accounting, property and fixed asset management, financial management, human resources management, labor management, performance appraisal management, etc., which can provide very detailed information. For example, management expenses can be calculated to departments, people, specific tasks, etc.
7. Development Trends of Foreign Commercial Banks
(1) Intelligent Operations
The basis for intelligent operation of commercial banks is comprehensive electronicization. The electronicization of commercial banks in Western developed countries has been going on for nearly 40 years. It has experienced the electronicization of back-office business processing in the 1960s (using computer hosts in the background for batch accounting, accounting and printing reports), and the electronicization of front-office business processing in the 1970s. (A terminal is installed at the front desk and connected to the host of the batch business automatic processing center. The counter staff enters the customer's transactions on a case-by-case basis at the front desk, and inputs the transaction data information online into the host for centralized business processing, thus enabling the front desk to Simplification of teller operations), electronic system network construction in the 1980s (establishing a centralized business electronic processing center at the head office, connecting the front and back offices, between branches, between banks, and between banks and customers, so that various businesses can be processed centrally) , the integration improvement stage in the 1990s (system integration is carried out in the backend, and service channels are added and communication technology is updated in the frontend.). In contrast, the electronicization of back-office business processing in domestic banks has basically been completed, while the electronicization of front-office processing has not yet been completed. The gap is even greater in terms of system network construction and integration improvement.
The central content of intelligence is internal comprehensive management informatization. In developed countries, commercial banks of a certain scale have established and are constantly improving management information systems (generalized MIS). The establishment of the MIS system enables personnel at all levels of the bank to possess and use a large amount of information, conduct classification and statistics as needed, use mathematical models to process, comprehensively analyze, research and predict the information, and manage it through expert software systems and decision-making software systems and control.
(2) Networking of business methods
Online banking will become the dominant direction of bank development and the main body of banking business in the future.
(3) Virtualization of institutional outlets
Electronic banking service tools will replace manual work and become the main form of bank front-end services. Banking services will become family-oriented, corporate, personal and mobile. change. Traditional bank branches will become unmanned and invisible. Correspondingly, the employee structure of commercial banks will also undergo major changes. The proportion of tellers and accountants will be greatly reduced. High-quality product designers, analysts, and account managers will be replaced. , managers will become the main body of the bank's personnel structure.
(4) Comprehensive and versatile business
Reflected in three aspects: 1. The diversification of traditional banking businesses brought about by the wave of financial innovation. 2. Commercial banks develop into comprehensive service institutions, providing numerous agency entrustment businesses and even payment media for e-commerce. 3. Through mergers, mergers, and holdings, foreign commercial banking businesses have gradually developed into large financial groups integrating banking, securities, and insurance.
(5) Derivatives of financial instruments
The wave of financial innovation that began in the late 1960s has entered a new stage in the 1980s and 1990s, producing many new derivatives Financial instruments and financial systems have further intensified competition and risks, making the effectiveness of future bank operations largely dependent on the strength or weakness of risk management capabilities. For example, "Bankers Trust Bank" invited experts from various fields and used advanced theories to formulate effective risk management methods. In one fell swoop, it developed from a money-centered bank to an internationally renowned investment bank, giving people a better understanding of the derivative finance industry. A deeper view.
(6) Globalization of business activities
(7) Intensification of business management
8. Key factors for the success of foreign commercial banks
Scholars from various countries have done a lot of research on the success factors of excellent banks. This is actually the application of the basic theory in Tom Peter's "Looking for Excellent Companies" in the banking field. Research in this area first recommends the theory of excellent banking standards proposed by British scholar Davis.
By analyzing Citigroup and other 16 outstanding banks in 1984, Davis believes that the following six factors are the key factors for the success of outstanding banks:
1. Open corporate culture. This generally refers to the extensive horizontal and vertical communication that a bank uses in its day-to-day operations. Davis found that most of the best banks had open corporate cultures and relatively slow decision-making processes.
2. The management has the same values, which includes an open corporate culture and excellent cultural traditions, and emphasizes the quality of employees, requiring employees to be performance-oriented and identify with the bank's strategic goals. Unique values ??are built by banks in the process of forming their own potential. Excellent banks select relatively young future managers and establish an internal training system. Davis believes that narrow-minded thinking will affect the bank's ability to adapt to the changing competitive environment.
3. Shift from focusing on asset expansion and market share to profit-oriented business objectives.
4. Market positioning dominated by customer needs. Excellent banks often segment markets and reshape their organizational structures and marketing systems around customer needs.
5. Show great interest in new product development. All the good banks have highly successful electronic payment systems, innovative credit card checking facilities and interest rate swaps.
6. Matrix management information system. Excellent banks usually develop product- and customer-centered matrix management information systems. The prerequisite for adopting customer differentiation strategy and effective cross-selling strategy is to collect market potential and economic benefit data of market segments.
7. Strong credit balancing procedures. David believes that holding excessive risky loans is due to the misuse or bypassing of complete and rigorous credit evaluation procedures, and the root of the problem lies in the failure to implement and improve them. The credit evaluation system includes low-quality credit legal documents, poor pre-loan investigation, lack of post-loan follow-up, and over-concentration of loans.
But Davis believes that organizational structure, environmental factors and management style are not the key factors for the success of good banks.
In 1989, Davis revised his view of 1984 and put more emphasis on the following four factors:
1. The most important thing is that we must have a core business foundation, regardless of whether it is through acquisitions Or get it by cultivating it yourself.
2. Choice of strategic direction.
3. Manage diversified business capabilities through effective control.
4. Establish a meritocracy system, because as product differentiation increases, human factors increasingly become the differentiating factors of banks