What difficulties are the banking industry facing today?

Currently, the downward pressure on China's economy is increasing, and banks are the first to bear the brunt of this backdrop. The risks facing the banking industry include both external challenges and its own problems.

First of all, the downward pressure on my country's economy is increasing, and the probability of financial risk outbreaks is also increasing. This downward cycle actually appeared as early as 2012. At that time, a large number of private enterprises closed down in Jiangsu, Zhejiang and other places, and the bosses of many enterprises ran away or even jumped off the building. In 2013, this trend spread to the eastern coastal areas, and the economies of Jiangsu, Shanghai and other places continued to decline. A large number of private enterprises collapsed, and bank non-performing assets increased rapidly. The continued economic downturn and the gradual explosion of corporate credit risks have caused banks' reserves to be consumed in large quantities, their operating efficiency has been severely damaged, and their profitability has plummeted.

The second is how to upgrade the bank itself. As market intermediaries, banks play an important role in the national economic cycle. Although finance has always been hailed as the core of the modern economy, in the final analysis it still belongs to the modern service industry. The development of banks cannot be separated from the market and the real economy. Therefore, the development of banks must be based and core on the real economy and market entities. The transformation and upgrading of banks must first grasp the development and changes of market entities, as well as the structure and changes of the financial market itself.

In our country, central enterprises occupy a large proportion in the credit market, and banks are very willing to cooperate with central enterprises. Because central enterprises are usually very large, their economic benefits are guaranteed. Now that local debt is included in the fiscal budget, where the local financing platform will go next will have a profound impact on bank credit business. In addition, the development of Internet finance such as p2p, WeBank and online banking has subverted the concept of traditional banks. How to learn from the successful experience of Internet finance is a problem that traditional banks have to solve.

Friends, this is a good question. Today, the banking industry is facing many difficulties, but the most important one is the contradiction between the increasing degree of marketization of banks and the increasingly thin operating profits.

This kind of contradiction comes from the market, internally, and even from abroad.

The main difficulties coming from the market are: First, the monopoly business structure has been broken. With the deepening of financial reform and opening up, more and more emerging financial formats are emerging. The jobs of traditional banks are being challenged, and the space is becoming increasingly large. Narrow. For example, Internet finance represented by P2P platforms has had a greater impact, and private banks and other banking institutions have emerged. Under this influence, competition among banks has intensified.

Second, the operating difficulties of the real economy have not changed, which has brought great uncertainty to the business prospects of banks. These uncertainties are mainly reflected in their impact on bank credit funds. Safety will increase bank capital consumption, causing bank profits to decline, capital replenishment capacity to decline, and provision coverage ratio to decline accordingly. This will not only make banks’ days of making money gone forever, but also increase bank operating risks.

Third, the credit environment has deteriorated, which has seriously threatened the safety of bank credit operations. For example, in the past few years, the downturn in the real economy has led to a wave of closures and departures. The tide first appeared in the southeastern coast and then spread to many provinces in the mainland. This caused a sharp rebound in bank non-performing credit assets and made bank credit operations increasingly difficult.

Fourth, the transformation of banks is slow, the development of intermediary business is not fast, and the source of profits mainly relies on deposits and loans. As business competition intensifies, the market share occupied by banks is gradually shrinking.

Fifth, there is also the marketization of deposit and loan interest rates, especially the liberalization of the upper limit of deposit interest rates, which will continue to increase bank costs and narrow the interest rate spreads between deposits and loans, breaking the In the past, banks relied on monopolizing deposit and loan interest rates to earn huge profits, and banks' operating profits will continue to shrink.

Difficulties from external aspects: First, banks are increasingly opening up to the outside world. A large number of foreign-funded banks will be established in the domestic financial market in the near future, which will have a negative impact on the business expansion of my country's banking industry. It will have a profound impact on financial products, financial service methods and other aspects, and also cause a big impact. It may be defeated by foreign banks and reduced to the role of "little brother".

Second, the degree of financial openness continues to deepen. Although it provides opportunities for our country’s banking institutions to go global, it also brings greater pressure. If you are not careful, you may It may lose its "combat effectiveness" in foreign financial markets and cause huge financial losses.

From the regulatory perspective: Mainly due to the continuous introduction of regulatory policies, the continuous tightening of supervision, the operating behavior of banking institutions will continue to be standardized, the illegal arbitrage of credit funds will be restricted, and all Any behavior that skirts regulatory policies will be severely punished. For example, with the introduction of new regulations on asset management, bank asset management business information will be penetrated, and the nesting of funds will be broken. Regulatory arbitrage of banking institutions' funds and their flow to bubble areas will be unsustainable.

All these factors will increase the operating pressure of banking institutions, and will also make banking institutions face more and more difficulties in operating, and the operating pressure will also increase. This is an inevitable historical trend. Banking institutions must be mentally prepared to accelerate the transformation of business strategies, constantly change service concepts and methods, and innovate financial service products in order to catch up and not be eliminated or engulfed by the wave of competition in the financial era. Involution of external competition

In the past few years, when joint-stock banks had not yet developed on a large scale, the four major banks were basically able to maintain a corresponding tacit understanding. Although there was competition, the degree of benign competition was much higher than Now. After small or medium-sized joint-stock banks entered the market, they played the role of disruptors. With their flexible policies and loose supervision, they broke the inherent balance and reshaped the operating rules of the market, leading to the involution effect. out of hand. Internal management involution: What is the future path for banks?

Smart banks relying on the Internet and artificial intelligence will become popular in the future. The traditional development model has fallen into involution and is unable to extricate itself. The internal friction of the flesh-and-blood game will not last long. Smart banks will be the only choice for future development. By then, manual windows will no longer exist, and customers can handle most business through human-computer interaction or online processing. The competition among banks will shift from extensive competition for the market to the pursuit of optimization and improvement of technology, safety and efficiency of products, and precision and speed of services.

The difficulties faced by banks are all-round. In addition to the rising cost of deposits, the high risk of loan repayment, and the cancellation of a large number of traditional intermediary business fees, there are also the following outstanding problems:

1. Massive brain drain. In the past, people in the banking world were high-ranking, and they "made so much money that I was embarrassed to say it." Now that the economy has reversed, the most direct reflection is that a large number of outstanding front-office sales staff and middle-office risk control personnel have left. Many middle-level cadres have gone to investment banking, private equity, asset management and the Internet finance industry that has been booming in recent years. Enterprises are made by people, and the lack of outstanding talents will inevitably affect the development of the enterprise.

2. Full scope of financial supervision and monetary policy to reduce leverage. At present, it is no longer clear that the central government is determined to strengthen supervision and reduce leverage. Lowering leverage will reduce the money supply, making it more difficult for banks to attract deposits; strong supervision will reduce the liquidity of existing currency, and banks will use the money they already have. It became increasingly difficult to get up.

3. Various policies, regulations, standards, and guidelines have been introduced one after another to move from virtual to real. Many of the previous innovative models of banks have been expressly banned and can no longer be used. This is really a heavy blow. I wonder if you have heard that more than a dozen banks have recently jointly submitted a letter to the central government asking for moderate reduction of regulatory measures. However, the central government strongly rejected it, once again demonstrating their determination to safeguard the reform of the financial system. Therefore, banks must vigorously rectify and clean up their debts, and have to pay off debts for the good old days.

This wave of major reforms and adjustments will cause the banking system to experience pain for several years. The golden age of the past ten years will most likely be gone forever. May comrades be patient, persevere, and wait to welcome the new sun.

In ancient times, horse-drawn carriages were used to transport a cart of grain and grass from Suzhou to Xinjiang. Before it reached the destination, the horses and people ate up all the grain and grass.

Therefore, it is impossible for a horse-drawn carriage to pull out industrialization.

In the Internet age, we all know that driverless cars, electric cars, Dutch vertical farming, wind energy... Mature technologies are better for the future, but you rely on banks Allocating resources (transportation currency) means that they can never be successfully allocated (delivered).

Because the banking system is an intermediary logic, the effort is to increase information intermediaries, while the requirement for intelligence is to remove information intermediaries. Assuming that the banking function is handed over to Tencent, Tencent only needs to open investment channels for various innovation directions. With 1 billion registered users, each investing 1,000 yuan, it can deliver 1 trillion-level ammunition for innovation directions. If this ammunition is given directly to Tesla, Google, BYD, and Baidu, can driverless smart cars (smart trucks) be mass-produced directly? Innovation can directly bring 10 times the credibility to investors, and use more credibility to invest in more innovative directions... Therefore, banks have become horse-drawn carriages in the Internet era. They seem to be able to transport money, but they cannot deliver it in large quantities. . It looks like hard work, but actually you eat more than you work. Further understanding: If the entire market transaction is moved to Alipay (or WeChat), investment will become as simple as a game because 1.4 billion people x 100 blocks equals 140 billion. Taxes are just a plug-in away. Because finance is smart and taxation is smart, finance is smart. Because finance is intelligent, distribution and procurement can be intelligent in the future...

In summary, the biggest crisis facing the banking model is the crisis encountered by horse-drawn carriages and cars; it is the crisis encountered by car navigation The crisis of Amap; it is the crisis of Nokia meeting Apple; it is the crisis of cameras meeting smartphones; it is the crisis of newspapers meeting Baidu; it is the crisis of theology meeting science...

< p> The difficulty facing the banking industry now is how to transform and upgrade. With the end of the extensive economic development model, the banking industry is also facing development bottlenecks. Our country's banking industry began to transform into truly independent banks only after the joint-stock reform in the early 1990s. The banks ushered in tremendous development after the joint-stock reform. However, in our country's extensive economic development model In my country, the banking industry also developed in an extensive manner.

In the past thirty years of development, the main business of banks has been credit. When the economy was in an extensive development model, there was no problem for banks to only do credit. When the economy needed to be transformed and upgraded, banks It is very difficult to rely solely on credit business. Coupled with the development of financial technology, the Internet industry has taken away the payment business of banks, and the decline of bank deposits has become an inevitable trend.

The only way out for bank transformation and upgrading is to strengthen the financial nature of the bank and develop a complete business chain for the entire bank. The bank's business is divided into three major sectors: credit, wealth management, and investment banking.

Among these three major business sectors, only credit requires banks to bear risks. Financial management and investment banking businesses do not require banks to bear risks. Therefore, the transformation and upgrading of banks requires the integration of financial management and investment. Banking business developed and expanded.

Financial management business and investment banking business require higher professionalism. To develop and expand financial management business and investment banking business, we must cultivate new economic growth points in various regions and cultivate new economic growth points in various industries. Only at this time will there be a large number of high-profit enterprises, and then the financing needs of high-profit enterprises will be made into various financial products, so that more people can share the fruits of high economic growth. In this way, banks can complete their own tasks while helping the economic transformation and upgrading. transformation and upgrading.

However, this kind of bank transformation and upgrading requires very high talents in banks, requiring banks to have a large number of complex senior financial talents. Therefore, the real transformation and upgrading of my country's banking industry still needs a process.

In recent years, the main problems encountered by banks have been the decline in the growth rate of the world economy and China's economy, which has led to a decrease in demand for bank loans. Due to the decline in economic growth and overcapacity, some companies' loans have gone bad, resulting in losses for banks. The government requires banks to offer profits to businesses and lower fees. With the development of Internet finance, the attractiveness of bank wealth management products has declined, residents' savings have declined, and banks are facing difficulties in financial reform.

"Banks are a vulnerable group." Zhang Jianguo, President of China Construction Bank, made a speech that caused laughter at the scene. This topic also instantly became a hot topic. With the development of Internet finance and the acceleration of interest rate liberalization, calls for banking industry reform have become increasingly louder.

With the rise of the concept of Internet finance, more over-the-counter businesses should be able to be completed independently by depositors on the Internet. This not only reduces the cost of the bank, but also reduces the time cost that ordinary people need to go to the bank to handle business.

In terms of policy, banks are subject to increasing supervision. As for future reforms, banks must make strategic transformations based on themselves.

What do you think? Leave a message with us in the comment area.

It is said that the banking industry has been having a hard time recently. Many traditional branches under various banks have been closed, and there is a trend of downsizing and streamlining staff. Looking back on the role of banks in people's lives, it was called a "horizontal". Now that the halo is gone, he has finally come to an ordinary end. What is the reason for this "roller coaster" experience in the bank? Next, Kunpeng Lun will try to briefly analyze the biggest difficulties currently faced by banks.

Once upon a time, banks as representatives of financial institutions were so prestigious. Banks are the first choice for people to save money, banks are the first choice for loans, and banks are the first choice for purchasing financial products... Bah bah bah, anyway, as long as it is related to money, it is absolutely right that the bank is the first choice. At that time, if banks were called second, no one would have the guts to be number one. This was a typical example of a dominant bank.

But now, more Internet financial products have sprung up, and their development trend is as out of control as the surging river. This is the first difficulty faced by the banking industry, the "challenge" under Internet finance. The emergence of Internet finance suddenly shined in front of people's eyes. Because Internet finance has the following two advantages that banks do not have, and each of these two advantages has captured people's hearts.

First, financial APPs represented by Alipay and WeChat Pay make consumption more convenient for people. They only need to deposit money into the APP and can easily make cashless payments without having to carry money when going out; secondly, , various "baby" financial products such as Yu'ebao and Yulibao not only allow people to get excess bank interest on deposits, but also purchase financial products on these "babys", which is time-saving and convenient.

With the blessing of these advantages, Internet finance will of course have a strong impact on banks! Therefore, it is inevitable that banks will fall out of favor. This is also a problem that banks need to solve urgently.

In addition, the bank's service attitude has dragged down the bank's reputation, causing people to have a bad impression of the bank, and people have turned to the "embrace" of Internet finance! The above point talks about the external impact on the bank. At this time, there is a problem within the bank itself. I remember one time I went to a bank to handle business. Because I didn’t know very clearly about some specific details, I asked the bank’s lobby staff. I asked a few more questions, and he looked very impatient with me.

Alas, I said, if I knew better, why would I ask you? Isn’t my time valuable? Besides, isn't it because the bank arranged for you to be in the lobby to serve customers? If not, what's the use of you? Really. So, I think the bank’s service attitude needs to be improved. If you continue to be so self-righteous, you may make your bank cry in the future.

In fact, the biggest problem facing banks is reform. Nowadays, various financial loans have developed through online platforms, which poses a great challenge to banks. The rise of Alipay and WeChat has increased the impact. If banks want to continue to make profits, Not only are requirements lowered in terms of lending, but also the lending model needs to be continuously reformed through the Internet.

The difficulties faced by banks should be institutional issues and service issues.

Since the advent of Alipay and WeChat Pay, the banking industry has faced great risks. If it were not for the protection of the central bank, not only one family but two families might go bankrupt.

Banking system innovation is relatively slow. Of course, financial security is very important, but innovation is still necessary when it is time to innovate. In today's society, all walks of life are changing with each passing day. Failure to keep up means being eliminated. You cannot be forced to make progress, you must learn to take the initiative to make progress, so that you can develop better.

There is also the service aspect. Banks cannot afford to have no customers. Not only do they have to think about why no one comes to save money or borrow money, they also have to think about why they are losing so many customers. It's lost in the details. You can’t just wait in line for hours just because depositors want to deposit a dollar. Therefore, banks must be customer-centric and make it as convenient as possible for customers without violating regulations.

There are many problems facing the banking industry. These are two of them. What else do you think? Welcome to leave a message!