Strategic Positioning

I. Mission

The world is witnessing major changes unseen in a century. In view of complex economic and financial regulatory climates domestically and internationally, and in response to various challenges such as greater economic downward pressure, accelerated liberalisation of interest rates, stricter financial regulation and extensive application of financial technology, the Company has further improved corporate governance, optimised systems and mechanisms, and enhanced organisational efficiency. In particular, the Company has deepened reform and transformation, accelerated business model reform and business adjustment, and continuously promoted the use of technology in business operation and large-scale innovation. Focusing on its development strategies and adhering to its three major strategic positionings of becoming a bank for the NSOEs, a fintech-based bank and a bank of comprehensive services, the Company has further facilitated the continuous improvement of its development quality and competitiveness. 

II. Strategic Positionings and Targets

(I) Strategic positionings

The Company aims to become a bank for the NSOEs, a fintech-based bank and a bank of comprehensive services.

(II) Strategic targets

Adhering to the customer-centric philosophy and to realise the goals of high-quality development and profitability, the Company strives to transform itself into a digitalised, light-capital benchmark bank of comprehensive services, so as to further increase its corporate value.

III. Reform and Transformation 

During the Reporting Period, the Board and the management led the development of the Bank by adhering to the three strategic positioning of being “a bank for the NSOEs, a fintech-based bank and a bank of comprehensive services”. Emphasising the ten major tasks and 25 key initiatives of the reform and transformation, the Company promoted the transformation of business model and management mechanism to achieve development with high quality, high benefit and high efficiency.

Firstly, to put “a bank for the NSOEs” in practice, the Company focused on the major NSOE customer groups, especially the strategic customers, niche customers, SMEs and small and micro customers. 

The Company accelerated to build the service system for strategic NSOEs, and completed the extension of the list of strategic NSOEs at head office and branch levels, enhanced the comprehensive service model of “1+3” implemented the account planning for strategic customers and the  “five in one” team work model, and improved the management mechanism for categorised marketing and service. In response to the needs of strategic NSOEs, the Company provided more differentiated and customised financial service solutions based on transaction banking, investment banking and financial markets agency services.

The Company established a new supply chain finance business model, innovated the highly competitive supply chain financing products such as E-Credit Finance  (信融E) and E-Receivables  (應收E), improved the contectualised supply chain service system, optimised the online marketing and service and risk control procedures, forming a full-chain service capability for niche NSOEs around core enterprises. The Company continued to expand the target customer base of supply chain financial services and provided industrial solutions to 12 major industries.

The Company firmly promoted the “Minsheng SME Project (中小企業民生工程)”. By establishing system platform, optimising service procedures and launching highly competitive products, the Company continued to improve comprehensive service capabilities in settlement, financing and wealth management for SME customers. As part of the “Ying Huo Plan (螢火計劃)”, the Company promoted the business model of “share option + comprehensive services”, which contributed a total of 550 contracted customers. Market share and brand reputation of financial services for small and medium NSOEs continued to grow.

The Company continued to improve the service capability for small and micro enterprises. In response to the new market condition, the Company adjusted the business structure, developed innovative products, streamlined its service channels, accelerated the establishment of online services for small business, cultivated the eco-system of “1+1+N” for small business customer groups, explored integrated operation of “Settlement + Wealth + Credit”, and enhanced the professional level of small business services. With the transformation and upgrading of loan business to comprehensive services, the leading position of the Company in the industry was further consolidated.

Secondly, to build up “a fintech-based” bank, the Company accelerated fintech application and promoted business transformation with new technology.

The Company facilitated fintech application based on the core nature of fintech. By making full use of new technology to support business development, the Company expanded the scope of customer service, restructured procedures for product design, optimised supply of financial products and diversified customer service channels. The Company reformed its business patterns based on user thinking and took technology as the locomotive for business transformation.

Based on “platform + data + scenario”, the Company established a new scenarised financial service platform for corporate business consisting of six major product systems, six major mid-office systems and six major risk systems. The Company supported the transformation of retail customer group management by optimising the control of big data-based marketing, constructing online ecosystem and open-ended banking system to facilitate more accurate online marketing and services. 

As the application of distributed technology is increasingly mature, the Company gradually restructured systems for direct banking, certificate management, payment engines and core system of SAP liability in order to facilitate the business transformation towards open-ended and scenario-based financial services, and the IT transformation towards platform and intelligence-oriented operation, and to form the capability of exporting technology.

Thirdly, to build “a bank of comprehensive services”, the Company strove to realise the synergy of “One Minsheng” based on the customer-centric philosophy. 

Adhering to customer-centric philosophy, the Company focused on the needs of target customers, enriched product supply, optimised service processes and streamlined internal management to promote cross-selling and synergy system under “One Minsheng”.

At the Bank level, the Company improved resource allocation and performance evaluation mechanism, promoted synergy across business segments, lines and organisations, improved customer acquisition and management capabilities, and expanded the scope and extent of comprehensive customer services. With the accomplishment of the customer-centric renovation of business outlets, the service and marketing capabilities of the on-site teams were significantly improved and their business performance maintained rapid growth.

At the Group level, the Company strengthened strategic synergy between the Bank and its subsidiaries, coordinated customer-centric business and management to effectively improve joint services for target customers and the overall financial competitiveness of the Group.