Community Banking: the “Financial Manager” at the Gate of Residential Quarter

Time: August 3, 2015   Source: China Economic Net

As community is regarded as the last “pure land” for retail, property developers and e-commerce companies all aim at the area, and banking is of no exception. In recent years, all major banks piloted operation of community banking and opened outlets in communities, extending financial service to the “last 1 kilometer”. At the end of 2013, the General Office of China Banking Regulatory Commission (CBRC) printed and issued the “Circular on Matters for Small- and Medium-sized Commercial Banks to Establish Community Sub-branches and Small- and Mini-sized Sub-branches" (hereinafter referred to as the “Circular”), defining the corresponding procedure of administrative examination and approval that community sub-branches and small- and mini-sized sub-branches should go through.

Up to now, nearly two years have passed. Do these banking outlets set up at the doorway still run normally and have they brought some changes to the life of residents? In this regard, the reporter of China Economic Net visited many community sub-branches of Industrial Bank (IB) established in cities such as Chengdu, Wuhan and Shanghai.

Banking outlets neighboring customers

An outlet, with a signboard not big in size, which covers about 100 square meters, has 3-4 officers and is located among stores like convenience store, laundry and clothing store, is typical of the community banking developed by IB vigorously in recent years.

Different from the conventional banking outlets, community banking does away with the long-existing high profile of banks, there is not cold glass isolating customers from officers of the banking outlet, and the low counters arranged in a unified manner enable the officers and residents to communicate with each other at no distance. Most of the IB community sub-branches the reporter visited set up photo walls, where photos showcase the interaction and friendship between employees of the sub-branches and residents of community in the neighborhood vividly on a day-to-day basis.

At the LuxeHills International Community Sub-branch in Chengdu, our reporter met Ms Xu who was coming for handling service. She was a frequenter of the sub-branch. “Each week, I come here at least once or twice, and I also come here to drop in for a while even if I have no business to handle. It is like my home.” she said with a smile.

At Baibuting Community Sub-branch in Wuhan, Zhang Jinjiang, who is 83 years old, spoke highly of the sub-branch, “A bank should not merely attach importance to its economic benefits, but more importance to social benefits. All of us like to come here because of the high reputation of IB. Many activities they hold for the convenience of residents are very popular among us, and enrich our life.”

The recognition of residents showcases the concept of IB community sub-branches of "good neighbors first, business second”.

Offering proper service according to local conditions

In the course of visit, the report discovered that different community sub-branches of IB, though they are all of community banking and have the same equipment, had different features in business operation and service.

Though covering an area not large, Tongsheng Road Community Sub-branch in Chengdu offers well-established functions. With a dominating warm tone, which creates a cozy and comfortable atmosphere, the sub-branch is divided into the following functional sections including self-service section, counter service section, personal loan section, garden tea section, mini-reading section and children’s entertainment section. Accompanying the development of the community sub-branch are four young people who are 25 years old on average, and they have their original understanding to the "slow life” pursued by Chengdu people. While maintaining orderly daily business operation in an unpretentious attitude, the sub-branch develops new customers on the basis of retaining old ones, and extends cooperative merchants without radical and hurried actions.

The reporter has learnt a story from Xue Chengcheng, President of the sub-branch: Uncle Gong relying on wheelchair, who is nearly 80 years old, suddenly wanted to relieve nature when handling service in the sub-branch. Nonetheless, none of his family members was at hand, and he was in difficulty to move freely. Xu Yujia and Guo Wei, two officers of the sub-branch, hurried to put Uncle Gong on back and took him to the washing room of the sub-branch. Due to squatting toilet, Xu Yujia worried that Uncle Gong couldn’t hold on in the process of relieving nature as a result of exhaustion. Xu held Uncle Gong all the time, supporting the body nearly 100 kg with his arms for half an hour. Then, he took Uncle Gong to the wheelchair on back together with colleagues. With sweat falling down profusely and arms completely numbed, Xu Yujia mentioned it slightly, “It’s nothing. I just did what I should do because they are our customers." In the sub-branch, these young people, born after 1985, have gradually won the trust of residents with their sincere service day by day. In one year after opening, the sub-branch has attracted nearly 900 loyal customers, with the balance of all financial assets over RMB 200 million.

At community sub-branches of IB established in Wuhan, the reporter discovered that they had blended convenient service into the daily life of common people. Centering on the needs of customers in areas such as clothing, food, house, travel, health and education, they provided a variety of “manager-based” convenient service by way of organizing horizontal merchants alliances, holding salons and lectures, and building social platforms such as baking class, parent-child FQ education, and jewelry appreciation salon, to offer advice for customers on wealth management and financial planning. While bringing benefits to common people, they also draw near the relations with customers and deepen their understanding of customers. Moreover, they also conduct wealth management and investment education and cultivate the financial consumption habit of customers in an unconscious way.

The community sub-branches of IB in Shanghai, considering the characteristics of local financial consumers such as good awareness of investment and wealth management, and high financial service needs, bring into play the competitive edges of IB in integrated wealth management capability and offer all retail banking service except cash centering on wealth management service such as wealth management and fund sale. In the meantime, they also launch characteristic wealth management products of community sub-branch version, so as to meet the diversified wealth management needs of community customers.

The convenient “last 1 kilometer”

“The sparrow may be small but all its vital organs are there” -- it is the most appropriate description of IB community sub-branches. In an operating area not large, there are self-service machines including CRS, remote VTM, electronic banking experience machine, and UnionPay Convenience Payment Terminal. When needing service such as deposit, withdrawal, wealth management, and online consulting, residents can do it all by themselves with those machines, and it is very easy to operate.

Even bank cards can now be applied with the card issuing machine equipped at any community sub-branch. It used to take at least 10 minutes to apply for a debit card at a conventional outlet, and it required confirmation with signatures over and over again in a complicated procedure. It takes only 2-3 minutes to apply for a card with the self-service card issuing machine on the whole. Without filling in any form, one can apply for a debit card only having his or her ID card read, and the card can be taken instantly. According to the introduction of an officer of IB Xianxia Road Community Sub-branch in Shanghai, many residents choose self-service application of cards thanks to the convenience of self-service card issuing machine. Now, the sub-branch opens more than 50 cards each week.

Besides card issuing, other service such as subscription of wealth management products, and conversion of demand deposit into fixed deposit can all be handled with self-service machines.

The officers of community sub-branches in Wuhan even change the service model from “waiting customers to come" into actively "sending service home". If any resident near a community sub-branch has any question or needs guidance on banking service, the officers of the sub-branch may provide visit service and can also introduce suitable products according to the needs of the customer.

Because of the convenience brought to customers, their adhesiveness has been improved greatly.