Actively respond to the sinking of the business of major banks, stick to the main responsibilities and main business, and seek breakthroughs

In the face of the sinking business of large banks, how can rural commercial banks reshape their advantages and break through the encirclement? Jiangsu Shuyang Rural Commercial Bank adheres to the principle of seeking progress while maintaining stability, sticks to its financial origin, and has embarked on a path of high-quality development in deepening the support of agriculture and small enterprises and deepening inclusive finance.

Shen Zhuyi

In recent years, large commercial banks have accelerated the extension of financial services to towns and communities, strengthened the expansion of inclusive small and micro businesses, and small and medium-sized banks with rural commercial banks as the main body have been "squeezed" to a certain extent. In the face of the sinking business of large banks, how can rural commercial banks reshape their advantages and break through the encirclement? Jiangsu Shuyang Rural Commercial Bank adheres to the principle of seeking progress while maintaining stability, sticks to its financial origin, and has embarked on a path of high-quality development in deepening the support of agriculture and small enterprises and deepening inclusive finance.

In recent years, large commercial banks with relatively competitive advantages have accelerated their sinking into the inclusive small and micro loan market, which has increased the supply of funds and reduced the financing cost of enterprises to a certain extent, but greatly squeezed the market space of rural commercial banks. In the face of the unfavorable situation, Shuyang Rural Commercial Bank actively responded, gave full play to its own advantages, and strived to make up for its shortcomings, and maintained a good business development trend in an increasingly complex and severe environment.

Insist on taking root downward and be the "people's bank closest to the earth"

Adhere to the political nature of finance, always take the implementation of the national financial policy as the top priority, insist on being small and scattered, focus on the main responsibility and main business, and optimize the allocation of all capital resources to the county. Adhere to the initiative to sink, in the face of the fierce competition situation formed by the acceleration of the sinking of various financial institutions, go down, sink again, go to the real inside, go deeper, and include the general farmers, poverty alleviation farmers, left-behind people and new citizens and other groups that cannot be served and supported by other financial institutions into the scope of support, and provide products and services of the same quality. During the epidemic period, no loans, no pressure loans, and continuous loans were achieved, with a total of 202 million yuan in profits.

Insist on extending to the whole area and become an inclusive bank with wider coverage

Adhering to the original mission of finance, based on eliminating areas with weak financial services, we will continue to promote the transformation of old outlets, the construction of new outlets, and the establishment of financial service stations, conform to the construction plan of the eastward expansion and southward movement of the urban area, optimize the layout and structure of the existing outlets in the urban area, and build the first bank branch in the southern new city, which will play an active role in solving the financial needs of citizens, enriching the connotation of the city, and helping the construction of the new city. In line with the requirements of the construction of the rural payment system, 372 standardized financial service sites of "Village to Village" have been built, and at the same time, each site has been equipped with a self-developed "Huinongtong" code plate to realize one-stop handling and one-time handling of financial services. From 2021 to 2023, the number of credit customers will continue to exceed 100,000, 110,000 and 120,000. At the same time, the "Sunshine Service" volunteer service team was set up to promote the sinking of services on a regular basis, continue to provide financial support for customers with reduced mobility, and comprehensively solve customers' "urgency, difficulties and expectations" with a package of services, so that customers "don't have to run once".

Insist on moving forward and be a caring bank with better services

Adhere to the inclusiveness of finance, further promote financial innovation, product upgrading, and service transformation, and strive to improve financial availability, convenience, and experience. Keeping pace with the times to promote the transformation of outlets, fully launch the paperless system, configure intelligent machinery and tools, promote self-service business, and implement machine replacement and man-machine combination. Continue to guide tellers to transfer to account managers and lobby managers, increase the proportion of hall and outreach personnel, and achieve the effect of reducing cabinets without reducing personnel and tellers without reducing services. Implement the digital transformation of Sunshine Credit, support the service mechanism of online priority, offline connection, and online and offline integration, and set up service counters to customers to provide "zero-distance" services. The "Digital Sunshine Credit" project was awarded the first place in the 2022 Excellent Credit Model Transformation Project of the Provincial Rural Commercial Bank, and has won this honor for five consecutive years.

Persist in promoting the real situation and become a local bank with better quality

In terms of risk appetite, we will stabilize the risk appetite, include the support for agriculture and small enterprises in the strategic planning and work plan, optimize performance appraisal, strengthen due diligence and exemption, and force prudent and compliant operation by improving credit inspection rules, establishing a negative list, doing a good job in exit management, and identifying overdue loan responsibilities on a monthly basis, so as to stabilize the non-performing rate below 1%, and maintain the steady growth of agriculture-related, small and micro, and green credit. In terms of business structure, we will implement the requirements of reducing costs and increasing efficiency to all units and stages, pay attention to low-cost capital deposits, maintain the leading proportion of demand deposits in the province, and effectively control the interest payment rate at a reasonable level. In terms of compliance management, we will promote the construction of compliant banks and clean banks in an integrated manner, and establish and improve working mechanisms such as education and training, compliance examinations, system combing, behavior investigation, complaint analysis, problem rectification, and responsibility investigation; Highly focus on areas where risks and violations are frequent and prone to occur, catch the signs, grasp the small ones early, prevent problems before they occur, weave a solid line of defense against risks, promote the change of work style, and maintain a smooth government decree and a clean atmosphere and a good ecology.

Insist on expanding outward and be a self-reliant and self-reliant benefit bank

Increase revenue and reduce expenditure, and enhance the availability of operating benefits. The first is to seek benefits from the comprehensive management of assets and liabilities. By improving the asset-liability structure to increase efficiency, the financial market business is regarded as a business innovation point and profit growth point, strengthening the ability of capital co-ordination, optimizing the asset allocation structure, and improving the efficiency of capital use. The second is to seek benefits from fine management. Accelerate the establishment of a comprehensive cost management system and implement centralized financial management. Realize the transformation of financial management from human control to process control. Introduce economic capital management to promote more refined management. Carry out economic capital optimization competitions and establish corresponding reward and punishment mechanisms, so as to form an atmosphere in which everyone cares about economic capital throughout the bank. The third is to control risks and seek benefits. As a commercial bank, there are only two core issues: profitability and risk prevention. Although risk prevention does not increase revenue, saving expenditure also increases efficiency; Risk control is aimed at business development, and business development is premised on risk control.

Give full play to the advantages and enhance the competitiveness of the county market. The first is to earnestly grasp the transformation of outlets and form a differentiated, characteristic and professional service system. Establish a refined management system that adapts to local economic development and risk management capabilities. Through effective measures such as optimizing internal processes and consolidating the foundation of internal control, we will practice internal skills, make up for shortcomings, change the extensive management model, and explore the connotative development path. The second is to focus on "customer-centric" and provide customers with a full range of services. From the management to the ordinary staff, it is necessary to implement responsibilities like the "river chief system". The third is to give full play to the role of account managers. Establish a team of full-time account managers, and determine the assessment mode of account managers with the goal of account management, profits, and professional marketing services, so as to increase customer stickiness and loyalty.

Learn from each other's strengths, borrow a ship to go to sea, and strive for the initiative in the competition. The first is to learn from the big banks. Learn the foresight of the big bank's situation analysis and the advanced nature of policy formulation, learn the big bank's reliance on financial technology to reconstruct the concept, logic and process, learn the new products researched and developed by the big bank, and then carry out secondary development and grafting in combination with the actual situation of the region and the unit, learn the internal management methods, means and measures of the big bank, and improve the level of intensification and the ability of risk prevention. The second is to strengthen cooperation with major banks. Take advantage of the geographical proximity, popularity and kinship of the outlets to carry out cooperation with large banks. The third is to start international business. International business is a high-yield business, and in addition to the spread between deposits and loans, there are many intermediate business benefits such as foreign exchange gains and losses.

(The author is the secretary of the Commission for Discipline Inspection and the chairman of the board of supervisors of Jiangsu Shuyang Rural Commercial Bank)