咨询管理战略组织项目麦肯锡工具评估 麦肯锡—China PFS Market and Winning Strategies for New Entrants.ppt

《咨询管理战略组织项目麦肯锡工具评估 麦肯锡—China PFS Market and Winning Strategies for New Entrants.ppt》由会员分享，可在线阅读，更多相关《咨询管理战略组织项目麦肯锡工具评估 麦肯锡—China PFS Market and Winning Strategies for New Entrants.ppt（85页珍藏版）》请在淘文阁 - 分享文档赚钱的网站上搜索。

1、ConfidentialChina PFS Market and Winning Strategies for New EntrantsJanuary,2000PD documentThis report is solely for the use of client personnel.No part of it may be circulated,quoted,or reproduced for distribution outside the client organization without prior written approval from McKinsey&Company.

2、This material was used by McKinsey&Company during an oral presentation;it is not a complete record of the discussion.Jonathan WoetzelSHODavid Von EmlohSHOJerry XiaoSHOJun LiSHOINTRODUCTIONThis document is designed for CSTs to understand China PFS market and new entrant strategy.The issues that this

3、document addresses include market potentials for different PFS products(i.e.,savings/deposit,mortgages,credit card,auto loans,other personal loans,and insurance/investment);customer segmentation and channels;regulatory and competitive environment assessment;KFS for new entrants;winning strategies fo

4、r new entrants.This document includes the following sections:China PFS market overviewProduct opportunity assessmentImplications for new entrants1PD/000131/SH-MISC(97)RETAIL BANKINGChina PFS market overviewChina PFS market is currently in its early stage;the penetration of non-deposit product is esp

5、ecially low.Current consumer needs are mainly for basic service but the need for more sophisticated products/services is emerging.Products/services provided by the banks are fairly basic now.Channel network is branch dominant with alternative channels(e.g.,ATM,phone banking)underdevelopedIn more dev

6、eloped countries,retail banking is a significant portion of the banking business and its profitability is higher than wholesale banking,highlighting retail bankings potential and attractivenessChina PFS market has great potential for new entrants,especially for non-deposit products.Among them,mortga

7、ges and credits card are particularly attractive.Also,urban young and high income consumers are emerging as a very attractive segment.Non-traditional channels like phone banking and Internet banking also provide an attractive opportunity given the positive attitude that Chinese consumers have toward

8、s these channelsProduct opportunity assessmentStrategies for new entrants2PD/000131/SH-MISC(97)TextRETAIL BANKING AN ATTRACTIVE OPPORTUNITYHigh market potentialsInternational experiences suggest that retail banking enjoys higher returns than wholesale banking because,Ability to raise capital cheaply

9、 on capital market puts a lot of pressure on corporate lending marginsDetail products such as credit card and mortgage have very attractive marginAttractive potential returnsNew entrants have an opportunity to shape the retail banking industry in ChinaRetail banking is growing fast globally,and it s

10、hares a more significant part of the banking business for more developed countries More sophisticated consumer needs are emerging24-hour serviceFee-based serviceHigh interest in new products/new functionsWilling to accept or try non-traditional channelsIn order to stimulate economic growth,the Chine

11、se government encourages the development of consumer creditInterest rate has been reduced several times and the spread widened Tax exemption for house purchaseMortgage securitization is in its piloting stageIncreasingly wider application of new technologiesDevelopment of new products(IC card for ins

12、tance)and better fulfillment of customer needsATM,internet banking and telephone banking expand distribution channels3PD/000131/SH-MISC(97)Per capita GDP(US$)Per capita retail banking business volume US$CHINAS RETAIL BANKING BUSINESS DEVELOPS STABLY,YET STILL AT A LOW LEVEL1994 1995199619971998CAGR=

13、27%Consumer assets*RMB billionsRetail banking business development in AsiaIndonesiaSingaporeHong KongTaiwanKoreaMalaysiaThailandPhilippinesChinaVietnam*Including deposit,investment and hedging productsSource:China Statistical Yearbook;McKinsey analysis4PD/000131/SH-MISC(97)RETAIL BANKING BUSINESS GE

14、NERATES A LARGE PORTION OF BANKs TOTAL INCOME IN MORE DEVELOPED COUNTRIESPercentMODELING&EXPERT ESTIMATIONRetailCorporateTrading*IndiaTurkeyPolandKoreaThailandArgentinaBrazilSpainGermanyUS*Including FOREX trading,the interest income is based on market interest rateSource:National bank statistics;McK

15、insey interview;CST interview;Emerging market business group.China205PD/000131/SH-MISC(97)RETAIL BANKING RETURN HIGHER THAN CORPORATE BANKING RETURN IN ASIAROEPercentRetail banking focussed bankCorporate banking focussed bankSource:BOK statisticsKOREAN EXAMPLE6PD/000131/SH-MISC(97)RETAIL BANKING RET

16、URN HIGHER THAN CORPORATE BANKING USReturn on assetsPercentCheap financing means available to corporate on capital market,making corporate lending interest rate lowRetail products like mortgages and credit cards have tremendous margin compared to corporate lending,contributing to retail bankings hig

17、her return1995199619971998Source:Annual reportsRetailWholesale7PD/000131/SH-MISC(97)CHINA RETAIL BANKING MARKET UNDERDEVELOPEDProduct featuresCustomer usageBasic products just emerged such as personal check and real credit cardLimited product features,e.g.,mortgage refinancing restrictedChannel infr

18、astructureBranch still dominant channelATM density very low(8/million capita vs 470/million capita in US)Not much cross sellPhone banking and internet banking just emergedOpportunity to shape the industrySource:McKinsey analysisMost customers use retail banking only for deposit serviceOnly 20%of top

19、 12 city consumers have banking cards while in US average people hold 7-8 cards8PD/000131/SH-MISC(97)VERY LOW PENETRATION RATE FOR NON-DEPOSIT RETAIL BANKING PRODUCTSInvestment products as percent of total consumer assets 1997PercentCredit product as percent of deposits 1997Percent0.6%Fee based inco

20、me as percent of retail banking revenue 1997120,000100%=7.8 million/cityESTIMATEPercentage of customersYOUNG PEOPLE WITH HIGH/AVERAGE INCOME ARE THE MOST ATTRACTIVE PFS CUSTOMER4991606101803711249062941,670507Interest incomePre-tax profit501160*Shanghai,Beijing,Guangzhou,Chongqing*Based on AMI defin

21、ition,potential PFS customers are 20-59 years old with annual household income greater than RMB 25,000Source:AMI PFS survey 1999LowMediumHighMature-stableMature-successYoung-upstartWhite-collar12PD/000131/SH-MISC(97)CUSTOMER SEGMENT PROFILE-WHITE COLLARWhite collarWell educated with good positions i

22、n local and foreign companies CharacteristicLacking overall understanding of PFSIn need of loans Open to borrowing Willing to try new financial productsServices required Convenient and quick service Quick information accessProducts required Credit/debit cards Mortgage Other personal consumer loans P

23、ensionChannels required No strong preference for face-to-face interfaceEmerging channels e.g.,telephone banking and internet banking Key factors in serving the classProvide products that meet their needs,e.g.,overseas study loan,large-amount medical loan,housing loan,decoration loan,etc.Encourage cr

24、edit consumption with credit/quasi-credit cardsAggressively promote new PFS productsProvide multiple convenient productsSource:Interviews,McKinsey analysis13PD/000131/SH-MISC(97)CUSTOMER SEGMENT PROFILE YOUNG-UPSTART Young-UpstartBusiness owners or young executives in large companies CharacteristicS

25、martLacking overall understanding of PFS Eager for useful informationWilling to take risksServices required Most efficient services Tailored proposition and service Round-the-clock service Products required Credit card MortgageUn-specified personal loans*Auto loan Insurance/pension Channels required

26、 Efficient channels such as ATM,telephone banking and internet banking Safe and reliable traditional channels Key factors in serving the classDesign tailored products;e.g.un-specified loanUnderstand that this group of people are more service-sensitive than price-sensitive and provide superior servic

27、eLeverage multiple channels to promote and provide products/services*A personal loan which does not specify usage of the loan,like the ones China Mingshan Bank provides to executives and celebritiesSource:Interviews,McKinsey analysis14PD/000131/SH-MISC(97)CUSTOMER SEGMENT PROFILE MATURE-STABLEMature

28、-StableMiddle-aged people with a stable income and a family to supportCharacteristicThough having stable income,they still need to manage family expenditure carefully Want to save moneyReluctant to credit consumptionWilling to try financial products that meet necessary consumption needsKey factors i

29、n serving the classProvide personal financial products with reasonable price to meet necessary needs,such as education loans,medical loans,consumer product loans,housing decoration loans Promote financial products in simple direct and clear waysProvide friendly person-to-person interface Services re

30、quired Face-to-face banking interface Like to get effective information through face-to-face communicationProducts required Savings/depositCredit card/debit card Mortgage Pension/insuranceOther personal consumer product loanChannels required Counter serviceATMSource:Interviews,McKinsey analysis15PD/

31、000131/SH-MISC(97)CUSTOMER SEGMENT PROFILE-MATURE-SUCCESSMature-SuccessMiddle-aged people with high income and a successful careerKey factors in serving the classOffer trust-based services and build up long-term relationship Design products that meet actual needs e.g.,more than one mortgageEncourage

32、 credit consumption CharacteristicAffluent and also family-oriented Have certain needs for loans Good personal credit Risk-averse Services required Effective and all-round service Customized services and counselingProducts required Savings/depositCredit/debit cards Mortgages Other personal loans Ins

33、uarnce/pensionChannels required Reliable traditional channel Source:Interviews,McKinsey analysis16PD/000131/SH-MISC(97)BRANCH REMAINS THE DOMINATE CHANNELABCICBCCCBBOCCBC*CITICMerchantPDB59,00934,59224,65611,7461,500200166140Number of outletsNumber of ATMs*Estimation17PD/000131/SH-MISC(97)BOTH STATE

34、 AND COMMERCIAL BANKS ARE BUILDING NEW CHANNELS AGGRESSIVELYPhone banking All state banks have offered phone banking for inquiries like checking balances in some branches.However,no bank has a nationwide toll-free number yetChina Merchant Bank also has fund transferring and bill payment feature for

35、phone bankingInternet Bank of China and China Merchant Bank are the first to offer Internet service for checking balance and internet paymentHowever,services are not provided for all branches,and they have only signed up limited number of web sites/merchants(e.g.,BOC-Shanghai only signed up 3 sites

36、in 1999)19921995 1996 1997 1998ATM growthCAGR145%ICBC is the largest ATM investor who has built 6500 ATMs which cost 2 billion RMB by the end of 1997Currently not many ATMs are compatible to cards issued by other banks.But in the long run after the golden card project,investing in ATM might not be t

37、he best strategy.Source:Interviews,Lit search18PD/000131/SH-MISC(97)Percent of total sample size strongly/somewhat agreeN=427MANY CUSTOMERS PREFER NON-TRADITIONAL BANKING SERVICE CHANNELSTraditional bankingConvenience51%prefer dealing with a person at a bank branch or on the phone50%would use a phon

38、e for most transactions,if such service existed,and would not use a teller49%intend to use Internet banking in the future73%want 24-hour access24%use ATMs and 13%use the phone for most/all transactionsBUTCHINASource:Understanding the Asia-Pacific PFS Customer,proprietary survey,April-May 199819PD/00

39、0131/SH-MISC(97)Percent of total sample size strongly/somewhat agree(top 2 boxes out of five)N=2,888PREFERENCE FOR PERSONAL INTERACTION AT BANK IS NOT PARTICULARLY STRONG FOR CHINESE COMSUMERSQ:I prefer dealing with a person at branch or on the phone rather than a machineTotal AsiaTaiwanSinga-poreMa

40、lay-siaKoreaIndo-nesiaChinaThai-landHong KongPhilip-pinesIndiaUS(55%)Source:Understanding the Asia-Pacific PFS Customer,proprietary survey,April-May 1998;US data:“Prefer the branch over self-service banking”,PSI 1997 consumer survey20PD/000131/SH-MISC(97)Percent,N=2,888USAGE OF PHONEBANKING IS SMALL

41、 NOW,BUT IT IS PROBABLY SUPPLY NOT DEMAND CONSTRAINEDTotal AsiaHong KongSingaporeKoreaTaiwan*IndonesiaChinaMalaysiaThailandIndiaPhillipinesUS(39%)*Households who have used phone bankingWillingness to use for most transactions,if availableQ:How often do you use telephone banking?Q:I could handle most

42、 of my financial needs over the phone,and would not use a branch if such service existed*20%of respondents in Taiwan said that they use phone banking every day*US households who use phone banking at least once per month.PSI 1997 consumer surveySources:Understanding the Asia-Pacific PFS Computer prop

43、rietary survey April/May 199821PD/000131/SH-MISC(97)ATTITUDE TOWARDS INTERNET BANKING IS POSITIVELY STRONG*US non-users of PC banking,who would use,if available Source:Understanding the Asia-Pacific PFS Customer,proprietary survey,April-May 1998;US data from PSI 1997 consumer surveys Percent of tota

44、l sample size strongly/somewhat agree(top 2 boxes out of 5)N=2,888Total Asia China Philip-pines Korea MalaysiaThai-landHong Kong Indo-nesiaIndiaSinga-pore TaiwanUS(23%)*Q:I intend to use internet banking in the future22PD/000131/SH-MISC(97)YOUNGER PEOPLE ARE MORE OPEN TO NON-TRADITIONAL CHANNELSCHIN

45、A 50-5930-3920-2940-4950-5930-3920-2940-4950-5930-3920-2940-49Q:I prefer dealing with a live person at branch or on phone rather than a machine Q:I could handle most of my financial needs over the phone.Q:I intend to use internet banking in the future Source:Understanding the Asia-Pacific PFS custom

46、er,proprietary survey,April-May 1998 23PD/000131/SH-MISC(97)RETAIL BANKINGChina PFS market overview Product opportunity assessmentImplications for new entrants24PD/000131/SH-MISC(97)MAIN PRODUCTS OF INDIVIDUAL FINANCIAL SERVICESavings/depositsLarge savings/deposit market with good growth and relativ

47、ely low profitYoung and high income segments are the most attractive customersFour big commercial banks have dominant position in savings/deposit market,and the smaller ones are lagging in most dimensions of KSFTo compete,new entrants should not only continue to pursue service superiority,but also a

48、ggressively explore innovative products,alternative channel solutions and invest in brand buildingMortgage Credit cardAuto and other personal loansInvestment/insurance25PD/000131/SH-MISC(97)SAVINGS GROWTH WILL SLOW DOWNKey driversTotal amount of savings/deposit in ChinaRMB billionsCAGR 15-20%GDP gro

49、wth will slow downSavings rate is already very high,further penetration could be difficult(China 26%,Japan 18%,US 4%)Interest tax discourages savings/depositMore investment products available to compete against savings/depositIncreasing demand for house,cars,and other large-ticket products shifts mo

50、ney from savings to consumption11,080CAGR 26%Source:China Information Bank199419982002 projected26PD/000131/SH-MISC(97)YOUNG-UPSTART AND WHITE COLLAR ACCOUNT FOR MOST OF SAVINGS/DEPOSIT*The average of Beijing,Guangzhou,Shanghai,and ChongqingSource:Understanding the Asia-Pacific PFS customer,propriet