Empirical research of Internet Bank Strategy in China

Empirical research of Internet Bank Strategy in China

Table of contents
1. INTRODUCTION 5
1.1 RESEARCH OBJECTIVES 5
1.2 RESEARCH QUESTION 5
1.3 SUMMARY 5
2. BACKGROUND 6
3. METHODOLOGY 7
3.1 INTRODUCTION 7
3.2 RESEARCH APPROACH 8
3.2.1 Deductive approach 8
3.2.2 Inductive 9
3.3 RESEARCH METHODS 9
3.4 SAMPLE BANK 11
4. LITERATURE REVIEW 14
4.1 INTERNET BANK 14
4.1.1 overview of the internet bank 14
4.1.2 Origin of internet bank 16
4.1.3 Conditions of internet bank 16
4.1.4 Categories of internet bank 17
4.1.5 Difference between internet bank and traditional bank 18
4.2 DEVELOPMENT OF FOREIGN INTERNET BANK 19
4.2.1 development mode of foreign internet bank 19
4.2.2 The development direction of foreign internet bank 23
4.2.3 Reasons for the success of western countries’ internet bank 25
4.3 DOMESTIC DEVELOPMENT OF INTERNET BANK 26
4.3.1 Domestic researches on internet bank 26
4.3.2 Commercial bank internet banking development in China 28
4.4 EVALUATION 31
4.5 RELATED THEORIES 32
4.5.1 SWOT 32
4.5.2 4P Marketing Theory 34
5. EVIDENCE 42
5.1 SITUATION OF INTERNET BANK BUSINESS IN AGRICULTURAL BANK 42
5.1.1 Development history 42
5.1.2 Management situation analysis 45
5.1.3 Product situation analysis 46
5.1.4 Analysis of the status of marketing 48
5.2 PROBLEMS OF INTERNET BANK BUSINESS FOR AGRICULTURAL BANK 49
5.2.1 The internal operation management 49
5.2.2 Product applications 51
5.2.3 Marketing 52
5.3 ADVANTAGES OF DEVELOPING INTERNET BANK BUSINESS FOR AGRICULTURAL BANK 53
5.3.1 the internet bank will improve customer loyalty 53
5.3.2 the internet bank in the alternative outlets business and cost saving has effective results 54
5.4 SWOT ANALYSIS OF INTERNET BANK BUSINESS FOR AGRICULTURAL BANK 56
5.4.1 Strengths 57
5.4.2 Weakness 57
5.4.3 Opportunity 58
5.4.4 threats 60
6. RECOMMENDATION 60
6.1 TO OPTIMIZE INTERNAL MANAGEMENT SYSTEM 60
6.1.1 To strengthen the construction of its organization 61
6.1.2 Strengthen personnel training, make professional team 63
6.1.3 to set up scientific internal evaluation and incentive measures 64
6.2 MARKETING STRATEGIES 65
6.2.1 Product innovation 65
6.2.2 Price strategy 67
6.2.3 Online distribution strategy 67
6.2.4 Promotion strategy 69
6.3 SECURITY STRATEGY 69
6.3.1 Set up a reliable system structure 69#p#分页标题#e#
6.3.2 to strengthen the safety control and client customer recognition 71
6.3.3 to strengthen the safety consciousness 74
6.3.4 To establish network bank risk compensation system 75
6.4 SUMMARY AND LIMITATIONS 75
REFERENCES 76
 

1. Introduction

1.1 Research objectives
Based on the synthetically domestic and foreign scholars’ researches on the Internet Bank, the author does an empirical study on Internet Bank to examine the problems of Chinese Internet Bank.

1.2 research question
The research question is what are the problems of Chinese Internet Bank? What are the strategies for its development?

1.3 Summary
This dissertation firstly introduces research objectives and research question. And then discusses the background of the dissertation. Chapter three is about the methodology, after introductions, the research approach, such as deductive approach and inductive aproach will be analyzed, then the research methods will discusssed and the sample bank will be analyzed. Chapter four is the literature review, such as the internet bank, including overview of the internet bank, Origin of internet bank, Conditions of internet bank, Categories of internet bank, Difference between internet bank and traditional bank. Then the development of foreign internet bank will be analyzed, such as development mode of foreign internet bank, The development direction of foreign internet bank, Reasons for the success of western countries’ internet bank. And the domestic development of internet bank also will be discussed, such as domestic researches on internet bank and Commercial banks’ internet banking development in China. In this dissertation, some theories are used, such as SWOT and 4P Marketing. http://www.ukthesis.org/ygsslwdx/ Chapter five is the evidence, for example, the situation of internet bank business in a agricultural bank, such as Development history, Management situation analysis, Product situation analysis, and Analysis of the status of marketing. the problems of internet bank business for agruicultural bank are also discussed, such as The internal operation management, Product applications, Marketing. The third part is the advantages of developing internet bank business for agricultural bank. Fourth part is the SWOT analysis. Chapter six is the RECOMMENDATION, such as TO OPTIMIZE INTERNAL MANAGEMENT SYSTEM, including to strengthen the construction of its organization and to straighten out the business management relations, to Strengthen personnel training, make professional team, to set up scientific internal evaluation and incentive measures. MARKETING STRATEGIES, including Product innovation, Price strategy, Online distribution strategy, Promotion strategy. SECURITY STRATEGY, including to set up a reliable system structure, to strengthen the safety control and client customer recognition, to strengthen the safety consciousness, and to establish network bank risk compensation system.#p#分页标题#e#

2. Background
In 2010, China's Internet bank rapidly developed, the sum of business transactions and trading frequence get a substantial growth. Though enterprise internet banks still occupy the market share, while personal internet banking market has a great tremendous  potential. In 2009 enterprise internet banking transactions accounted for 96.7% of the total trading, amounting to 70.2 trillion yuan, increasing 21.3 trillion yuan more than that in 2008 (Zhong, 2011). In 2010 China personal Internet bank developed very quickly, especially China merchants bank, industrial and commercial bank and agricultural bank, their individual users' growth rates are more than 50% (Zhong, 2011). Personal market scale is growing fast, and the growth rate has reached 300%. Personal Internet bank users' growth rate is faster, by the end of 2010, the individual users of the Internet bank has amounted to 34.6 million, and a 103.5% growth than that in 2009, accounting for 38.7% of all Internet users. The transactions increases from 600 billion yuan in 2009 to 2.4 trillion in 2010, the growth rate is 300%. In the next four years, the enterprise internet banking market will be in a smooth growth, and personal internet banking market will continue to rapidly grow, between 2011 and 2015, the market turnover will multiply grow, and then gently decrease later. In 2012, personal Internet bank transactions will exceed 30 trillion (Zhong, 2011).

Facing the competition and the change of the market and challenges, Sadie Consultant issues “2011-2015 China internet banking industry annual report” (Zhong, 2011), from the following aspects, will help the industry manufacturers, investors and industry chain to more accurately grasp the Chinese Internet banking industry development. From the function of the bank, the competition pattern, the competition strategy, etc., the gain and loss are summarized, which are the leading factors of success or failure on Internet bank. While, in China, compared with foreign Internet bank development, Chinese Internet bank still faces a lot of problems, such as security, trust, business innovation, and so on.

Chinese banks are in the policy-based market, which is different from foreign countries, especially western countries. So when collectting data from users of Internet bank, the results will be different from expectations, especially for state-owned banks, so the author just selects a state-owned bank as the research object.

3. Methodology
3.1 Introduction
This chapter is about the research methods of the study. Methodology refers to the approaches or methods that are used in the research (Blaxter et al 2001). The research method is concerned with the way in which data is collected and discussed to answer the research question. The most fundamental ways in research methods is primary and secondary research (Saunders 2003). Then to find out the related literatures and to investigate a case personally. This research is to study the problems of Internet Bank in Chinese banks, so multilevel methods should be combined in this research. Regarding that this dissertation studies some abstract issues, so qualitative methods and quantitative methods both are used here.#p#分页标题#e#

In order to narrow the research scope, the author chooses China state-owned Bank as the research object. After analysis the situation and problems of internet bank business for China Bank, the author will propose some suggestions.

 

3.2 Research approach
Generally speaking, there are mainly two research approaches, deductive approach and inductive approach. Saunders (2003) shows the difference between deduction (quantitative) and inductive (qualitative) research methods

3.2.1 Deductive approach
Deduction
  Scientific principles
  Moving from theory to data
  The needs to explain causal relationships between variable
  The application of concepts to ensure clarity of definition
  A highly structured approach
  Researcher independence of what is being researched
  The necessity to select samples of sufficient size in order to generalize conclusion (Neuman, 2006)

3.2.2 Inductive
  Gaining an understanding of the meanings humans attach to events
  A close understanding of the research context
  The collection of qualitative data
  A more flexible structure to permit changes of research emphasis as the research progresses
  A realization that the researcher is part of the research process
  Less concern with the need to generalize (Saunders, 2003)

The author uses a deductive approach to research from theory to research data and testing of this study. The logic of this study is firstly to propose research questions, and then to get data, thirdly to analyze these data, at last reach the conclusion and propose suggestions to the problems.

3.3 Research methods
In order to achieve the objectives the author makes use of questionnaire, which is designed to get information and situation of Internet Bank in China. After Data are collected in this dissertation. the author uses EXCEL to analyse them. Then the author will find out the actual attitude and opinions of Internet Bank users.

In this dissertation, quantitative questionnaire has been used for the primary data collection, which the author thinks to be the appropriate strategy to achieve the objectives. These questions are about the situation, problems and necessity of Internet bank business for China Bank. Secondary researches and materials in this dissertation have been collected from various sources such as some journals, web news, newspapers, and books and so on; the authoritative website information is also used to acquire more up-to-date information, material and data. The combinations of primary and secondary research method are regarded as to be appropriate to the enquiry. As very few studies have been conducted into the internet bank business in China, it is relatively original. Emory and copper (2009) have explained that when the area of study is new, the researcher will need to conduct an exploration just to learn something about the problems and to be sure of the practicality undertaking the study. There is limited information and studies on this subject and the problems in China. Therefore in order to get valid and reliable data from banks in China, therefore it was greatly necessary to collect some information on internet bank in China.#p#分页标题#e#

In order to clearly show the logic of the dissertation, the author creates a flow chart to indicate it: Figure 1: Research logic flow chart.

Source: the author creates, 2011

As for the barriers to completion of research, Questionnaire is based on the respondents' values, attitudes, opinions, and other subjective aspects, so the data collected from the questionnaires will be limited.

3.4 Sample Bank
In this dissertation, the author chooses China Agricultual Bank as the sample bank to study internet bank business. Agricultural bank of China is one of China's four big Banks, initially founded in 1951. It is the first state-owned commercial Bank since the founding of new China. It is also an important part of the China's financial system. Its head office is in Beijing. For years development, the agriculture bank of China has been among the world top 500 enterprises. And in the list of the “powerful world bank 1000” it ranks in the eighth, its moody's credit rating is A1. In 2009, the agriculture bank of China is wholly reformed from the overall state-owned commercial Banks to modern joint-stock commercial bank, renamed as “agricultural bank of China Co., LTD.”, and in 2010 it completes “A + H” listing, the total value ranks in the 5th among the world's listed Banks (Zhong Tou, 2011).

Agricultural bank of China has capital strength and complete service function, it adheres to the core values of “integrity career, steady”, it adheres to the prudent stable operation, sustainable development, through the national 24064 branches, and more than 30000 sets automatic teller machines and 1171 overseas agents spread all over the world. With the most extensive coverage of the network system and leading network information technology advantage, it serves more than 350 million customers worldwide (9.727 million VIP customers), as well as more than 2.6 million enterprises (involving leading enterprises relating to the national economy and the people's livelihood). It provides the convenience, high efficiency, high quality financial services (Zhong Tou, 2011). The total number of its customers and its institutional networks distribution are in the top among large commercial Banks in China.

In 2009, the agricultural bank of China promoted business transformation, and its value creativity, market competitiveness and risk control continuously improved. By the end of 2010, the total assets exceed RMB 10 trillion to 10.34 trillion yuan, accounting for 11.3% of the total amount of assets in the bank financial industry. It is the most scale and the strength of the modern joint-stock commercial bank, is also an important constituent of the financial system in China. By the end of 2010 the deposit reaches to 8.99 trillion yuan, all loans reaches 4.96 trillion yuan, deposit ratio is only 55.77%, capital adequacy ratio is 11.59%, core capital adequacy ratio is 9.75%, all place a higher level. By the end of 2010, bad loans decrease by 0.88% year-on-year, a provision coverage is 168.05%, increased by 62.68%. The core index rise to the forefront in the domestic comparable industry. The annual report also shows that the Intermediary Business of agriculture bank develops rapidly. The annual fees or commission net income reach to 46.128 billion yuan, the rate of increase exceeds thirty percent, if eliminating the dispose bad assets business, and then the increase can raise to 42.8%. In which the electronic banking, credit card, investment Banks, agency of insurance business growth are all in the above 50%. In 2009 its net profit is 65 billion yuan, a 26.3% growth than that in 2008. In 2010, it achieves the business income 290.418 billion yuan RMB, a 30.7% growth than that of last year. The net profit is 94.907 billion yuan, profit growth rates can be reached about 46%, the net profit growth is in the head of China's four big state-owned banks. In 2009 China agricultural bank moody's credit rating is A1 / stable. In 2010, the agricultural bank of China ranks in the 141th in the world's top 500; In 2011, rising to 127th in “the world 500” (Zhong, 2011).#p#分页标题#e#

Relying on the worldwide network, applying on the world cutting-edge technology, agricultural bank of China builds China's largest financial electronic network. It achieves the nationwide network processing of settlement business. Internet outlets, networking automatic teller machines (atms) networking POS cover all over the nationwide. Agricultural bank information construction pace speeds up, information construction’s comprehensive strength increases apparently. Agriculture finance building-the agriculture bank Shanghai headquarter is finished in November 2006, it completes its nationwide three-years data gather project, in 2007 it completes the installment of data center transference engineering, and smoothly realizes the data to switch from a data operation center (Beijing) and the national 36 branches to agricultural bank data center (Shanghai), the technical indexes reach the standards, and pass the international standardization authentication. At present the construction of the agriculture bank disaster backup center (Beijing) gets the smooth progress, as one of the important cores of the agriculture bank IT infrastructure. Data center aims to be the international first-class green data center intergrating the whole bank data operation, redundant test, product research and development, file storage function and so on. Togather with the information technology department of the agriculture bank, the software development center of the agricultural bank of China serves for the agriculture bank to build the most advanced informatization level of the strategic goal of commercial bank (Zhong, 2011).

Personal Internet bank certificate customers can enjoy account information inquiry, electronic payroll inquiry, transfer, roaming remittance, credit card payments, internet pay cost, finance and investment, etc. Non-certificate customers can enjoy debit card information inquiry, account transaction details inquiry, account password changing, countermandofpayment, roaming remittance draft, electronic payroll inquires and other services.

Personal internet banking services have the following characteristics: first is the comprehensive account management. Customers can put debit card, the accurate card, current passbook, these three kinds of agriculture bank account registration to the client number of internet bank, just by clicking the mouse, people can easily manage various kinds of accounts. Second is the convinient funds scheduling. Remittance of balance among the national bank cards of agriculture bank is real-time, access the nation, breakthrough the obstacles of time and space, which can truly realize funds transfer “zero in road”. Third is the comprehensive security. Not only applies the high standards of international technology PKI public key system structure, 128 SSL security communication protocol, graphics yards, dynamic password keyboard and use the K digital certificate which can not be reproduced, and at the same time provides the omni-directional security guarantee system in the business process, and operation management. These can ensure the safety of fund fundamentally for customers. Fourth is easy foreign exchange financing. Customers can easily carry a golden key foreign exchange treasure to deal with various transactions (individual actual quatation foreign exchange trading). Foreign exchange channel provides with the latest and the most comprehensive foreign exchange information and professional foreign exchange trading analysis tools, let foreign exchange finance to be more easily. Fifth is the convenient new experience. It specially produces the fully automatic intelligent installation package, relaxed begin to internet banking trip.#p#分页标题#e#

4. Literature review
4.1 Internet Bank
The internet bank develops to today, has already a certain theoretical foundation. There are many domestic and foreign scholars to do a lot of systematical researches on the internet bank, the contents of these researches provide rich materials for this dissertation.
4.1.1 overview of the internet bank
The internet bank is also called as electronic banking. It means that banks use the Internet technology, through the network platform to provide customers to open an account, cancel the account, inquiry, check up account, transfer, credit, internet securities, investment finance, or other services (Philip, Barton, 2003). The internet bank is also known as “3A bank” (Joel and William, 2001), because it is not constrained by time and space, because it can provide financial services at any time, in anywhere, in any way (Anyhow), so that customers can be able to manage their own bank account, credit cards, or to pay the water, electricity, gas, communication, and other various kinds of fees and personal finance and investment, etc safely and conveniently, while they never need to leave home. It can be said that the internet bank is a virtual bank counter open on the internet platform, and can also provide services for many customers.

There two kinds of modes of internet bank development, one is the invisible internet bank which is completely dependent on Internet, and it is also called “virtual bank” (Niels and Mols, 2000); The so-called virtual bank means there is no actual physical counter as the support of the bank, this internet bank does not have branches, neither business site, using the international Internet and other high-tech service means to establish close relationship with customers, to provide a full range of financial services. In the United States, take the first safety internet bank for example, it was established in October 1995, and it is the first established internet bank in the United States without business branches, and it is the virtual bank. Its business hall is website picture. At that time there were only 19 staff, the main job of them was to maintenance and manage the network. The other kind is in the existing traditional bank basis, using the Internet to develop traditional banking transaction service. That means the traditional bank uses the Internet as a new service means to provide customers internet services (Kent, Katri, and Daniel, 2005). It is in fact the extension of the traditional bank services to the Internet, this is at present the main form of internet bank, and most of commercial Banks take this model. In China at present there is not a independent internet bank, the domestic internet bank mentioned here now belongs to the second basic mode.

4.1.2 Origin of internet bank
In October 1995, the first global internet bank was “Security First Network Bank” (stands for SFNB), the headquarters was in Atlanta. It was born in the United States, the bank has no buildings, no address, only web site, business hall is computer screen, all transactions are through the Internet. There were only 10 employees. After opening one year, by the end of 1996 the deposit scale has amounted to $14 million. At the same time with set up of SFNB, Citigroup set up its internet bank business as the first multinational Banks (Philip, Barton, James, 2006). By June 2007, almost all the American commercial Banks have opened the Internet banking service.#p#分页标题#e#

However, the development of internet financial in general is in not equilibrium state, North America (the United States, Canada) and European internet bank have the most rapid development, the number of the internet bank accounts for more than 90% of the market in the world, followed by the Asia Pacific regions, such as Japan, South Korea, Singapore and Hong Kong, Taiwan, the development of Africa is most slow (Carlos, Eduardo, Miguel, 2004).

4.1.3 Conditions of internet bank
(1) The progress of science and technology promote the rise of the internet bank
The computer network technology will lead the human civilization to a new era, and change the bank management model, even change people's lives. The rapid development of the computer network technology leads to the Internet explosive growth in the world, and leads to the economy entering into the network economy (Chanaka and Paul, 2000). Almost all the international famous companies are already setting up their own business service systems in the Internet, and small and medium-sized companies also are unwilling to lag behind, so they seek business opportunities in the Internet for development, as a means to reduce cost and enhance competitiveness, shorten the gap with big companies, so as to promote the rapid development of e-commerce.

(2) the development of the electronic commerce needs internet Banks support
Strong vitality for electronic commerce brings new opportunities to all the countries’ political, economic and cultural factors in the world, especially for the banking industry. It has far-reaching influence (Minjoon and Shaohan, 2001). A complete e-commerce is composed by three links, business communication, the funds payment and commodity distribution, which decide the buyers and sellers in the electronic commerce. E-commerce also needs Banks, distribution centers and other institutions. Among them, the internet electronic funds provided by the bank plays the connecting link. It is directly related to complete the transaction.

(3) under the impact of network economy, banks need to reform and develop
In the background of modern communication network technology rapid development and electronic commerce increasingly mature, banks must master a lot service skills and internal process management based on the Internet to reduce the cost of operation, then they can maintain strong market competitiveness and obtain a new source of revenue(Ali, 2001). The internet bank is a new service manner for banks using modern information technology, reforming service means, and improving the competitiveness.

4.1.4 Categories of internet bank
Generally speaking, internet banking services mainly include the following four categories.
First, the trade category
This includes Internet transfer, small private mortgages, personal foreign exchange trading, enterprise foreign exchange trading, pay & collecting for another business, pay water, electricity, gas, telephone fees etc (Zi and Michael, 2002).#p#分页标题#e#

Second, Inquires category
This includes personal comprehensive account inquiry, trading history inquiry, the comprehensive enterprise account inquiry, trading history inquiry, enterprise credit extension loan limit inquiry, enterprise letter of credit inquiry, customer loans’ account information query, interest rates query etc(Zi and Michael, 2002).

Third, expansion of business
This includes securities, fund trading, internet shopping, internet personal finance, enterprise bank services, etc.

Fourth, information service
This includes bank basic information release, banking business varieties’ introduction, as well as the deposit branches, and the distributions of the automatic teller machines, etc.

4.1.5 Difference between internet bank and traditional bank
Comparing with the internet bank and the traditional bank, there are some differences.
First, business intelligence and virtualization. As for the traditional “tile-type” bank, its branches are physical network, mainly by means of physical capital, through many bank employees’ hard work to provide services for customers (Zi and Michael, 2002). And the internet bank does not have buildings, no address, only web site, its branches are terminals and the electronic space brought by Internet virtualization, mainly by means of intelligence capital, the customers do not need the help of bank staff, they can finish account inquiry, fund transfer, cash and bank business in a short time, which means they can access to get high quality, rapid, accurate and convenient services of internet banking self-help (Ying, 2003).

Second, personalized service. Traditional bank usually unilaterally develops business varieties to the customers, promote their products and services to customers, clients can only choose their needed bank services within the prescribed business scope, while the Internet provide interactive communication channels for bank services, customers can access the internet bank website and put forward their concrete service requirements (Sui, 2005). The internet bank implements one-to-one financial solutions on the network with customers, making the financial institutions to realize the characteristics and pertinent service in the interaction with customers, through the active service it can win the customers.

Third, the financial business innovation. The traditional bank business innovation mainly focus on capital business, reform and combine financial products in view of commercial bank assets and liabilities business to meet customers’ demand, and new requirements of banks (Wang, 2006). While the internet bank focuses on using its low cost advantage and the rich Internet information resources to innovate and improve enterprise credit evaluation, the company's personal financial advisors, experts investment analysis and other business to improve the added value of information, and to strengthen the bank information intermediary function.#p#分页标题#e#

4.2 development of foreign internet bank
4.2.1 development mode of foreign internet bank
Broadly speaking, internet bank can be divided into two kinds of modes: one is to be completely dependent on the Internet and it is new bank on the network, it has no business place, and the entire bank employees are much less than the traditional banks, customers are completely through the Internet to establish service relationship with banks. The other kind of development mode is to add internet service on the existing traditional bank basis, internet banking is just one of the channel between many bank sales channels (Pan, 2006).

4.2.1.1 Separate internet bank development model
The inventor of the independent internet bank considers that the internet bank by lowering the cost, proposes the new brand and competitive products in the market, so when it fights for the market, it will has more advantages than other opponents, because as more and more people begin to use the Internet, internet trading with low cost will replace the network transactions of the traditional banks (Pan, 2006). But the fact is that the internet banks which chooses the first kind of business mode are in failure:

(1) In the United States
The owner of the first world internet bank- the United States safety first network bank sells the internet banking business to the traditional Bank- royal bank of Canada with $20 million, the reason for the transfer is due to the security problem. Although safety first network bank itself has no any security problem, but the social public doubt to the safety of the internet bank business, so the buisness operation is constrained by the public security cognition (Minna, Heikki and Tapio, 2003). People Especially even lack trust for the network bank without traditional bank background.

(2) In Europe
The independent Internet bank which still maintains the operation has left less. Some internet Banks are closed after losing their money, another are announced to be cancelled even before opening. The internet bank First-e which headquartered in Dublin announced to collapse after losing more than $200 million. Switzerland's second-largest independent private bank --Vontobel bank announced to cancel its internet bank after losses in 300 million Swiss francs, and its chief executive officer was also forced to resign (Kent, Katri and Daniel, 2008).

Thus sets us thinking: alone internet bank once lost traditional bank’s support, it means to lose the most key customer relationships.
4.2.1.2 “traditional + internet” bank development mode
Comparing with the independent internet bank, to increase the internet services in the traditional bank then the profits rise. The famous American Morgan Stanley investment bank releases a report, the European traditional banks rapidly reduce the traditional bank business spending to keep the rapid growth of the internet bank. The European internet bank number in three years doubled.#p#分页标题#e#

Royal bank of Canada (RBC) is one the best banks with largest scope and profit ability in Canada, but for a long time, it is only engaged in financial wholesale business in the United States. In 1998, the royal bank of Canada purchased all parts of SFNB except for technology department with $20 million. While the internet banking customer accounts have 10000, its deposit balance as early as 1997 was exceeding 400 million dollars. But then SFNB development had been appeared signs of stagnation, why royal bank of Canada still purchase it? The aim is to expand its U.S. financial markets business and share (Jan and Helge, 2005). Through the acquisition of SFNB, royal bank of Canada enters America Financial market, using the deposit absorbed by SFNB to invest in Canadan small and medium-sized enterprises and obtain earnings. More important, the royal bank of Canada is using the deal, its business develops to a new rapid development field, making its standing in the forefront of the development of the internet bank.

Wales Wells Fargo (WellsFargo) is the seventh largest bank in US, it manages $100.9 billion assets. As early as in 1992, it began to establish its own information system which regards the internet banking services as the core. Officially founded in 1995, mainly through a developed indoor system to provide Internet banking services. Now it has nearly 6000 branches, capital yield rate is as high as 34%. The number of internet customers are up to 2 million households, accounting for 23% of the checking account customer accounts (Ya and Kwoting, 2004). The customers accepting the internet bank service account for 20% of all the customers. It is considered to be the representative of United States banking which provide an excellent of internet banking services. Wales. Wells Fargo establishing strategic objective of internet bank is to adapt to the changing of customers trade preferences and to reduce operating costs.

“Tradition+internet” successful secret is through the lowering cost, increasing income and making profit increase (Serkan , Safak and Eda, 2004).
(1) The customers using the internet bank have to pay an annual fee and single transaction fee, which can increase the income of the intermediate services;
(2) The occasion internet stores both need to pay an annual fee and single pen poundage, which can increase intermediate business income.
(3) The loan: internet loans’ rapid examination can save cost for banks.
(4) The internet bank can share the counter trading, which narrows the network number and counter staff to reduce the cost.
(5) The application of the internet bank products improves the customer loyalty, and can use convenient and perfect internet bank perfect products and services to attract more customers.

Efficient and rapid development of the Direct bank: Germany's Entrium Direct Bankers. Entrium Direct Bankers, in 1990 as part of the mail order company Quelle was established in German. Firstly it provided financial services through the telephone lines, in 1998 it opened up internet banking system. Now it has become the largest direct bank in Germany even in Europe. By the end of 1999, it has 770000 customers, including 150000 customers who use the internet banking system; The total assets reach $3.818 billion; it controls 30% of Germany deposit and 39% of the banking consumer loans (José and José, 2007).#p#分页标题#e#

Entrium has no branch with a total of 370 employees. It relies on the phone and Internet to explore market and to provide services. 370 employees serve 770000 customers, the per capita assets reach $10 million, much more than Asia's leading Banks level (Singapore development bank’s per capita is $5.8 million in assets, agricultural bank of China’s per capita is $500000). And Entrium thinks the existing system can meet the needs of 2.5 million customers, these series digital are enough to give Chinese commercial banks overstaffing alarming (Milind, 1999).

Entrium operations are mainly including consumer credit, circulation turnover loans, credit card, investment, internet trading and so on. Although it still provides the phone service to give priority to, but is speeding up the development of internet banking services, its internet bank development strategy is very clear, to change Entrium from having internet banking services leading phone bank directly into a telephone banking service leading internet direct bank. Entrium’s success lies to its use of the advanced scientific means to exploit market, contact customers, and process business (Jørn, 2002).
4.2.2 The development direction of foreign internet bank
Foreign internet bank has various development directions, and mainly have electronic bill and pay business, one-stop network financial services.
(1) American electronic bill and pay business (and pay for EBPP)
As is known to all, electronic payment is one of the bottleneck problems to restrict electronic commerce development. The competition of Foreign Banks in internet payments market at present has tended to heat up. In order to win in competition, new payments emerge endlessly, EBPP is one of them. EBPP is standing for electronic bill Payment and Presentment. It is an important part of the overall service of internet bank. EBPP can make payment people need to enter a URL which focuses on the main deposit account and can easily receive all the bills, and when paying the bills they can check the account balance and all the transactions details, then this can eliminate the troubles for consumers to enter into each one original Courier company website. And, EBPP can make important bills customers to deal with tradings more efficiently, and make customers more easily to control their financial information, thus to provide value-added services. All in all, EBPP can create a closer relationship with consumers, further promote and spread other internet products and services. For collecting companies, EBPP even helps them to reduce costs for communicate with customers, reduce the flow of trade paper and postage, lower to the bill payment cycle and reduce the accounts receivable, reduce the error and the cost of the payment to produce more easy to form an effective operation of the credit risk management mechanism.
(2) Japan's one-stop network financial service
Japan Sanwa bank and six financial institutions launch the Financial One, which is called as network financial supermarket. Joining the financial group are leading Japanese financial institutions, such as Sanwa bank, Toyal Trust bank, Datong Oriental Common Life Insurance Company, Taiyo Common Life Insurance Company, Japan Fire Insurance Company, Heung Fire Marine Insurance Company and Almighty Securities Company. They also integrate each company’s credit card, and provide a kind of multi-function credit card which integrate banking, insurance and other services to all customers of these six companies, other six companies have set up a joint venture company to deal with the customer's personal assets management, financial planning and heritage and other matters. This cooperation will not only promote various properties of different financial institutions to deal with cross business, and for customers provide with a variety of value-added services.#p#分页标题#e#

If EBPP business represents the foreign internet bank’s development level in products depth, then Japan's one-stop network financial service just shows the progress of foreign internet bank’s product and service range.
4.2.3 Reasons for the success of western countries’ internet bank
(1) The highly developed information technology
The western developed country attaches great importance to the development of information technology; information technology policies serve the overall target that takes precedence to create information society for all the members. the Internet and infinite transmission technology have changed People's Daily life style, the state promotes the development of information technology, not only in order to improve the level of life, and to promote economic growth, the purpose is also to create conditions so that every citizen can have skills and confidence in daily life freely to the application of information technology, enjoying the convenience brought by the electronic commerce and the internet bank. The long queues in front of the bank counter disappear, and the people save the time to play with children, to visit relatives and friends or go fishing for leisure.
(2) the developed electronic commerce
New technology has brought the new business opportunities, western enterprises take the development of electronic commerce or do business over the Internet as a basic business strategy.
(3) The advanced security software
The top issue facing for the internet bank to win clients and to fight for the market share is the safe problem. Because the network is virtual, it is more difficult to guard the security than physical state bank. In the development of the internet bank, must rely on strict technical design and comprehensive control counter measures to maintain the efficacy and safety of operation for banks. Only in this way can guarantee the customer confidence. It can be said, in the network environment, safety is the important guarantee to obtain the trust and win the customers. If the internet bank wants to gain a competitive advantage, it must effectively solve the problem of network security (Edwin, 2006).

4.3 Domestic development of internet bank

4.3.1 Domestic researches on internet bank
Along with the development of domestic internet bank, more and more people begin to pay close attention to the internet bank. In 2009 the east wealth website released “the 2009 China internet banking survey report”, and it shows that, despite impacted by the global financial crisis, Chinese internet bank in general is still keeping up the development situation, especially personal internet bank business, in the past year, in vigorously promoting of the competent industrial department, various Banks, CFCA and related institutions, personal Internet banking market increases inverse the trend, and performs a strong momentum of development. http://www.ukthesis.org/ygsslwdx/#p#分页标题#e# The study also finds out that the internet bank development is still closely related with the overall development scale and strategies, especially offline business development strategy. From the regional features of distribution of internet bank, most national commercial Banks’ business of the internet bank has the feature that the key areas focus on the development of strategies, including China merchants’ bank whose business development is outstanding. While Chinese four state-owned commercial banks whose offline business support ability is strong, their business of the internet bank in the national scope remain relatively evenly distribution. Although Internet users understand the main channel of the internet bank is the Internet, while the Internet banking services are still supported or restricted by the traditional offline networks, it still has not really realize “internet services internet development” purpose.

Many people propose the improvement comments and suggestions to the current internet banking. ZhengYan (2009) in “the research on the development and countermeasures of Chinese internet bank” mentions that network security has to be the main factor that effect on our country's development of the internet bank. In the internal management, risk management still needs improvement. At present the internet bank security risk management strategy and various kinds of guiding standards have not formed a system of risk management. Risk analysis model and method are not mature, quantitative analysis is not enough, lack of mature and systematical risk management process and method. In the information technology, financial network security has hidden trouble. As to the network is virtual, it requires higher strict “firewall”, identity authentication, security system layer protocol, safety electronic trading standard and other measures, and in the authenticity of information, the legitimacy of the identity of the customers, the payment information integrity, the legitimacy of the internet transactions, are impossible to completely eliminate the suspicions of people. Additionally, internet banking supervision system, network trade legislation are not perfect. The relevant laws and regulations are relatively lag behind the fast development of internet bank. Those all lack maneuverability and guidance. In any dispute, the cognizance of the responsibility, or the execution of the arbitration results and other complex legal relationship are difficult to solve in the existing condition. In light with the existing problems in the development of internet bank, commercial Banks have to take active measures to strengthen the channel management, further improve the incentive and restraint mechanism of internet bank, establish a sound risk management system of the internet bank, as well as to reserve and train financial talents for the internet bank, and perfect legal laws and regulations and risk supervision, to ensure that the internet bank can continuously, healthy and quick develop.#p#分页标题#e#

If the internet bank wants to further develop, it needs to develop new business varieties and the service contents, and to combine the traditional banking services and network channel closely together, on the one hand, enrich the contents of internet bank, on the other hand also must stress the individuation of financial products. The electronic business arising in the Internet age is the main development direction of the bank on the internet. To the customers, no matter traditional trading, or emerging e-commerce, payments are the important part of the deal, the difference is, the electronic commerce pays emphasis on process and the means of payment electronic. Whether effectively achieve the means of payment and the network is the key to success or failure for electronic trade, which relates directly to the electronic commerce development prospects.

The internet bank creates the electronic currency and the advantaged internet payment function in e-commerce, for the realization of the electronic payment provides strong support. As the final executives of electronic payment and settlement, the internet bank plays a connection role between the buyers and sellers, and the development of electronic commerce and internet bank is interaction and mutual benefit, they are mutual influenced, the internet bank also brings huge business development space for e-business, so with the development of e-commerce, the development of the internet bank also is an inevitable trend.

4.3.2 Commercial bank internet banking development in China
The rapid growth of Internet users provides more potential users for the development of the bank on the internet. Reviewing the domestic development history of internet bank, in 1997, the CMB “all-in-one-card” opened an internet business, began to open the domestic prelude of internet bank, in the 1999 Agricultural Banks offered personal internet bank, in 2000 China bank launched its internet business on the Internet, in 2001, industry and commerce bank drastically explored its internet market development, to the date, almost every large domestic commercial Bank is offering its own internet banking or in the internet to set up its own home page and web site, and then emerges the famous brand websites and famous products. But at present China has not yet completely dependent business pure virtual bank.

The China banking regulatory commission data show that, by the end of 2010, Chinese commercial banks (state-owned and joint-stock) have 74.945 million household users of the internet bank, increasing by 21.054 million households more than that in 2009, the growth rate reaches 39%. “The 2010 China investigation report on the internet bank” covers the permanent residents of the capital city of provinces such as Beijing, Shanghai, Shandong, Jiangsu, Zhejiang, Fujian, Guangdong, Sichuan and Liaoning province. The survey takes 18 - 50 year old of Internet users and enterprise financial personnel as a sampling survey. The survey shows that the public's cognition of the bank on the internet is very high, whether individual users or enterprise users, 80% above all have heard the bank on the internet, this data is more greatly increasing than that in 2009. In this recognition, in 2009 internet bank users accounts for 19.4% of the Internet users, in 2010 this rate is 33.6%, increasing by 14.2%, a year of change shows that users in the bank on the internet have quite conversion rate. Enterprise internet bank users accounts for 10.1% of the 2009, in 2006 this rate is up to 30%. Along with the increase of the Internet users, the rapid development of e-commerce, “in the first quarter of 2010 China's third party electronic paid market monitoring report” shows that the total trade scope of China's third party electronic market turnover in the first quarter of 2007 has reached 14.326 billion yuan, of which, the Internet payment market scale accounting for 97% of the entire third party electronic payment market, reaching to 13.931 billion yuan(Nina, 2006).#p#分页标题#e#

In domestic banks, China merchants bank executives give high attention to the future development of bank on the internet, in the middle development strategies of internet bank, they put forward clearly that in the strategic guidance of scale priority and bank recreation, they make sure the overall orientation that China merchants bank as a “technology leadership bank”, especially to make internet banking development become the main channel for customer service, to the highest level of domestic banking, China merchants bank has become China's internet banking market guide. In 2010, China merchants internet bank turnover is more than 14 billion yuan, trading number is over 3300, internet bank users are more than 10 million, including 2.5 million professional edition users. to use its internet banking system, with lower operation cost, that more than 50% of the private business and 15% of the enterprise business realize the non-counter operation in China merchants bank. One year completed business volume of internet personal bank is already close to the level of a regional big branch. The internet bank helps the China merchants’ bank to win the high value of the customers, and improve customer loyalty.

The industrial and commercial bank of China in 2000 put forward the goal of the internet bank development, “strive in the two years to make internet bank in a business function, service varieties, open area, technical contents, etc. aspects to catch up with other domestic commercial Banks’ internet bank, in five years the internet banking of ICBC become the best internet bank with the most famous national maximum visibility, the most extensive business scope, the richest financial products, the most convenient use, the highest technical level, the largest domestic market rate, and the best benefit.” According to Industry and commerce bank's latest statistics show that in the former 4 months of 2010 year, the individual internet bank users rapidly increase, the total amount of new individual internet bank clients is 4.55 million subscribers, the total accumulate to 27.8 million. Among them, the new password card customers is 3.5 million, and the new individual certificate customers is 684000. The internet bank turnover and trading number increase of 241% and 139% respectively, the internet personal remittance amounts to 164.3 billion yuan, internet fund amounts to 95.3 billion yuan, internet gold business amounts to 1.58 billion yuan; Banking-securities transfer and bank-securities link business transaction volume growth respectively increase to the 20 times and 2.6 times; Personal Internet bank financial products sales reach to 950 million yuan. Every day Icbc average internet banking businesses are forty million, business through electronic channel processing has reached 30%, the business volume of internet bank is equivalent to 6000 more sites’ deal with business volume(Nina, 2006). The number of customers is increasing rapidly, making industry and commerce bank in customers scale to further consolidate the leading trade advantage, and even lay a solid foundation for the development of internet bank business.#p#分页标题#e#

4.4 Evaluation
The development of internet banking services adapts to the demand of people who want to save time cost, the human cost and the financial cost, especially in internet transfer and internet payment this respect, internet banking services have the incomparable advantage(Nina, 2006).

At present, the Internet is popularized through every enterprise, and most of the residents’ family. The internet bank is further penetrating in various fields. More and more customers choose to use the internet bank, at the same time also put forward higher request on internet bank. But the domestic internet bank whether in environment or in technique and function is not enough mature, and has many problems. This dissertation tries to discuss and study a mature internet banking system, which has a complete regulating method and the regulatory environment, has excellent innovation ability and strong interaction, and good information integration and analysis ability. For a bank, the mature internet bank is a new mode of operation, this kind of means can not only save cost, and provides a broad platform for the product innovation of banks, improve the competition ability of the bank in the future (Nina, 2006). For companies, the mature internet bank not only can provide important pay foundation for the development of the electronic commerce, at the same time, the derivative service of the internet bank will bring a lot of convenience for the operations of the enterprises. For individual customers, the mature internet bank can make them not only to manage their own bank account at any time and place, they can pay all sorts of public expenses conveniently, and it can give different customers with different personality services, all kinds of service can permeate every aspect of life.

4.5 related theories
4.5.1 SWOT
SWOT analysis is the common tool for the internal environment analysis for the organization or industry. In this part the author will use this tool to analyze Chinese internet banking industry.
Figure 4.1: SWOT analysis image

 
Source: http://www.bizstrategies.biz/swot-analysis.html 2008
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objectives of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objectives. The technique is credited to Albert Humphrey, who leads a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.
• Strengths: characteristics of the business or team that give it an advantage over others in the industry.#p#分页标题#e#
• Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
• Opportunities: external chances to make greater sales or profits in the environment.
• Threats: external elements in the environment that could cause trouble for the business.
Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.
First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.
The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

4.5.2 4P Marketing Theory
4P Marketing mix strategy is defined on the basis of market position (Peter, 2008), In order to meet the needs of target customers, optimize the combination and comprehensive utilization of the impact of the controlled factor of enterprise marketing activities. Marketing combination is a tactical means for the enterprises to achieve the sales target used, is a collection of marketing means to seek their marketing target, for enterprises in target market. In fact there are dozens of marketing mix elements, especially summarized as four types, 4P, namely to represent product strategy, price strategy, place strategy and sales promotion. In each has a number of specific variables, shown in figure 4.2. 4P is to represent the seller's point of view, that is, the seller use it to influence buyers and is useful marketing tool. From the buyer's point of view, every marketing tool is used to provide for the customer interest.

Marketing mix decisions should also take into account trade channels and the final consumers (Peter, 2008). Figure 4-2 Shows that the company has prepared a product, service and price of combination of supply, through the marketing, advertising, personnel marketing, public relations, direct postal and telecommunications sales and other promotional activities, and issue with distribution channels and the hand of the target consumers.
Figure 4.2 4P of marketing mix

In the short term, not all marketing mix variables can be adjusted. Generally speaking, the enterprise can modify the price in the short term, the market forces, increase the advertising expenses. The development of new products and change channels will need more time. Therefore, in the short term, the company usually only change a few variables of all kinds of marketing mix.
(1) Product Strategy
Products on the market can buy the key factors. Marketing mix the original plan originated in how to provide a target, and meet the customers' needs and desires. Therefore, the product strategy is the first and most important part of the marketing mix strategy, it is the basis of marketing mix strategy.#p#分页标题#e#

Tangible objects-products of the company to provide market includes product quality, design ability, brand and packaging another part of the supply of products, but also offer a variety of services to consumers as lease, consulting, training, etc.

Products can be divided into four elements, as shown in Figure 4.3. The core products provide a very basic function; The actual physical product (tangible products) that will produce related things, expansion products have a lot of the values of the core or physical products, the product's value makes it easier to sell, and makes the business enterprise with more competitive, potential products on the market is to show that enterprise must be sensitive to the market and its change and get rapid response, so enterprise must think about the future of the products on the market (Peter, LaPlac, 2008).

The company in the fierce competition in the market in order to win it should continue to meet the market demand, the development of new products and continuously meet the new demands of consumers, change market opportunities into business opportunities, and get better economic benefits. On the basis of the existing evaluation portfolio of products, in light of their own characteristics and environmental conditions, the product structure adjusting the width and depth of the portfolio association.

Figure 4.3 categories of products

(2) Price Strategy
Price is the most critical and the most active factor for marketing, it has a direct relationship to whether the products can be accepted by consumers, demand size and the number of profits (Pedro Hidalgo, Enrique Manzur, Sergio Olavarrieta, Pablo Farías, 2008). Pricing strategies become the most important marketing strategy. In formulating the strategy should pay attention to the prices of the following questions:

a. give full consideration to the various factors that affect product
This mainly includes costs, the purchasing power, supply and demand, competition, psychology and policies and regulations. Cost is the basis of price formation (Demetrios Vakratsas, 2008); to determine the level of price, if the price is much lower, and the cost of the production and operation of enterprises is not hoped, usually this is unacceptable; Purchasing power is not only an important factor to determine the demand for commodities, but also the reflection of the largest consumers accepting ability and the needs of the commodity prices with the highest limit; The relationship between supply and demand is an important factor affecting the development, commodity prices are in short supply, while expensive price often is a kind of excess supply, and then it is to achieve high strategy; Psychological factors are also very important factors to determine enterprise pricing which should consider, because different consumers have a different attitude and the expected the price also is different; In addition, different levels of competitiveness have the influence of different for enterprises to establish commodity prices.#p#分页标题#e#

b. Acquire a scientific pricing method
To choose a scientific and reasonable pricing method is the necessary insurance to achieve enterprise pricing and enterprise aim of the activity. Market price of goods to the format is the case, the buyer and the seller are acceptable, buyers and sellers in the process accept this price by competitors (Demetrios Vakratsas, 2008). Commodity prices’ pricing methods include cost-oriented pricing, demand oriented pricing and competition-oriented pricing. The production of business enterprise should according to consumers accept ability, their own labor consumption and competitive products, flexibly adjust price appraisal.

c.Flexibly use pricing skills
The production and operation of enterprises, except for the prices of goods, set of general pricing method, also can be in accordance with the market environment and the specific situation to choose flexible pricing technology, in order to use to attract consumers, it ensures that the sales target can be realized. For example, various price discount, discounts, and flexible payment, a wide range of service quality and better quality assurance will let consumers feel worth the money.
(3) Channel strategy
The production and operation of enterprises in order to promote the new product production efficiency determine the highest and the lowest cost to consumers, it is necessary to study the choice of appropriate distribution channels. The channel is refers to the product (or service) from producer to end users in the conversion process, the relevant departments. The intermediate link includes enterprise (producers) sales agencies, wholesalers, retailers and distributors, dealers, etc. (Philip Kotler, 2005) As the same that the vascular is the metabolism access of the body, channels are life of the rivers for enterprises in the market economy. Whether the channel is fluency impacts the success or failure of an enterprise.
Distribution channels can be divided into the consumer market distribution channels and industrial market distribution channels. Figure 4.4 and 4.5 can indicate that. And they each have their own characteristics.
Figure 4.4 consumer market distribution channels

Figure 4.5 industrial product distribution channels

In the development of channel strategy, the following points should be noted:

a. the selection of appropriate brokers
Because most products to consumers through intermediaries, therefore, through the production enterprises to select the most appropriate agent is to ensure a smooth flow of products the prerequisites. Generally speaking, commodity production enterprises to select the brokers should have good reputation, high visibility, strong marketing ability (rich marketing experience and perfect marketing network), good resources (including human resources, material, financial, etc) and the higher the level of management.

b. Managing brokers
The status and role of the agent in the product distribution channels, can not be underestimated, this determines the commodity production enterprise must periodically, evaluate the performance of agents. As for better performance brokers should be given to encourage and support, and establish long-term cooperation, make resources can be the most effective distribution (Chau Au, Tam, 1988); on the poor performance brokers, after evaluation, support or encourage or update adjustment. Thus in the mutual rationing reduce transaction costs, companies and the brokers reach the progress and common development.#p#分页标题#e#

c. scientifically determine economic production volume
Commodity production and consumption in time and space, where there are contradictions, and study not only guarantee product market demand, save costs and reduce the cost of production volume, that is, the economic production quantity.

d. Reasonably choose mode of transport
Transport is an important content of the distribution of the entity. Can create space transportation tools used in products, to add value to their products, so reasonable transport can ensure that the products of timely, accurate, safety and economic service distribution network to meet the market demand. Enterprise should be based on the product characteristics, transportation distance, traffic conditions and other relevant factors, choose a reasonable logistic transportation way, make timely and appropriate products, fully meet the needs of the consumers, the realization enterprise the marketing target of product (Jarvenpaa Tractinsky, Vitale, 1999).

(4) Promotion strategy
The successful marketing activities not only have to set up the appropriate prices, select the appropriate distribution channels, provide the market with products that consumers satisfy, but also need to take appropriate approach to promotion (Childers, et al, 1972), set up and rationally use right promotion strategies is the guarantee for enterprises in the market competition gain favorable production and marketing conditions and access to the most economic effect.

From the point of view of marketing, sales promotion is to show enterprise through the staff and staff means that they come between the enterprise and the consumer information communication, trigger, and stimulate consumption and the desire of interest to let them buy. Therefore, the core work of sales promotion activity, is the information communication. Only when the product or service of production and operation of the enterprise information transfer to consumers, let consumer attention to them, and may have to purchase desire or purchase behavior (David, Luck. Ferrell, 1985). It is precisely because of such enterprises should be based on the characteristics of the consumers targeted in their marketing, through exchange of information and stimulate consumers’ purchase behavior.

As personal merchandising, advertising, public relations and other marketing methods have their own inadequacy, therefore, in the marketing process, the production and operation enterprises should consider comprehensively marketing objectives, products’ life cycles, competitive market conditions, promotions, budget and other factors to flexibly choose promotions methods.
5. Evidence
5.1 Situation of internet bank business in AGRICULTURAL Bank
5.1.1 Development history
In 1999, AGRICULTURAL Bank Internet website officially started. On August 2ed, 1999 it officially opened its business of the bank on the net, each provincial branch in the first half of 2000 started this business one after another. In 2000 within the bank it was basically in a trial run, early in 2001 it officially conducted this business.#p#分页标题#e#

From 1999 to now, AGRICULTURAL bank personal Internet banking has upgraded for five times. The Head office in 2006 was in fully absorb of the domestic and foreign financial trade base, such as America Bank, Citigroup, Industry and Commerce bank, China Merchants Bank, and optimize the process of the development of signing, login, inquiry, transfer, the internet payment, safety control and page style and other key aspects. At present individual internet banking can provide including account inquiry, transfer remittance, expends pay, borrow card, personal loans, investment management, customer service and security center eight categories and more than 120 sub-functions, which are in the domestic leading level in the page style, procedure, and the safety. Since 2000, the enterprise internet bank has also carried on several system upgrades, system functions enrich. From 2003 to 2006 the main index can be shown in table 5.1.
Table 5.1 The contrast of internet banking from 2003 to 2006
Time Number of clients Number of business Amount of business
2004 6.64 million 146 million  464.8 billion
2005 8.43 million 192 million 581 billion
2006 10.97 million 273 million 737.9 billion
Fist half of 2007 14.69 million 330 million 1056.4 billion
Source from the website of AGRICULTURAL bank: http://www.abchina.com/cn/

Main features:
(1) the internet banking business in the pearl river delta, Yangtze river delta, and Bohai Rim delta are better than other regions.
① the pearl river delta region’s individual internet banking business system is in the leading. From 2006 year’s data to see, the pearl river delta region (six branches) individual internet banking business development is best, business income, transaction amount and the number of new customer three index systems account for the first, transaction volume accounts for more than a quarter. Yangtze river delta (5 branches) has the highest volume than others, but business income is lower; the customer number of Bohai sea rim delta area (7 branches) leads first. The specific situation can be seen in table 5.2:
Table 5.2 The figure of the fraction of main indieator of Personal internet banking business in different district                               Unit: ten thousand
District level Number of clients Number of New clients Number of trade Amount of trade Business income
 Number Rate New number Rate Number Rate Amount Rate Income Rate
All over 1097 100% 263 100% 27339 100% 7379 100% 2067 100%
Yangtze River Delta 206 20% 47 18% 7159 27% 1346 18% 206 10%#p#分页标题#e#
Pearl River Delta 230 21% 71 27% 7000 26% 2721 37% 948 46%
Bohai sea Rim delta 266 24% 57 22% 5033 18% 1237 17% 384 19%
Midland 186 17% 44 17% 4125 15% 1426 19% 243 12%
Other regions 200 18% 44 17% 3724 14% 638 9% 287 14%
② Enterprises’ internet banking business in the pearl river delta and Yangtze river delta lead first in the system. Client number, number of new customers and business income these three indexes of Enterprises’ internet banking in the pearl river delta region lead first; enterprises’ internet banking each index all accounts for about a quarter; Bohai sea rim area has the highest volume of business, the central area of enterprises’ volume of internet banking has the highest rate. The specific situation can be seen in table 5.3:
Table 5.3 The figure which comPares the fraetion of main indicator of enterprise internet banking businessindifferentdistriet in 2006
District level Number of clients Number of New clients Number of trade Amount of trade Business income
 Number Rate New number Rate Number Rate Amount Rate Income Rate
All over 1097 100% 263 100% 27339 100% 7379 100% 2067 100%
Yangtze River Delta 206 20% 47 18% 7159 27% 1346 18% 206 10%
Pearl River Delta 230 21% 71 27% 7000 26% 2721 37% 948 46%
Bohai Rim delta 266 24% 57 22% 5033 18% 1237 17% 384 19%
Midland 186 17% 44 17% 4125 15% 1426 19% 243 12%
Other regions 200 18% 44 17% 3724 14% 638 9% 287 14%
Source from the website of AGRICULTURAL bank: http://www.abchina.com/cn/

(2) the volume of the internet payment and investment finance trading has the rapid growth
In 2006 individual internet banking realized the internet payment volume 37.77 million times, increased by 186% more than that in 2005, and accounted for 14% of the volume of individual internet banking, in which the volume of Taobao payment exceeded 30% more than the whole bank.

By the influence of the capital market, from the second half of 2006, investment finance business volume of the internet bank began to grow, especially funds buying and selling, banking-securities transfer, etc.

5.1.2 Management situation analysis
In September 2002 the head office formally established internet banking department, which is responsible for internet bank application and promotion. Then, each branch established internet bank department, some secondary branches set up special organization of internet bank business. By now, both 38 tier-one branches have set up 34 internet banking department, the four branches clearly make decision that personal banking department is the competent department of that internet banking. By now, both full-time employees of the internet bank reach to 2000 more, customer service center pews members are nearly 1500 people.#p#分页标题#e#

In 2006 years ago, all levels of the banks take the internet banking department as product positioning basically or background support department, since in 2006 its work focus gradually turns to the marketing, the position is products + the comprehensive management department of marketing.

In the evaluation indexes of the business of the internet bank, at present the main assessments include the newly customers, volume and transaction amount and the business income, etc. The assessment on the marketing personnel is the way to pay deal for reckon by the piece, the marketing personnel who get the success and have effective trade internet clients will be directly rewarded, do more than human cost.

5.1.3 Product situation analysis
When AGRICULTURAL bank designs the products of internet banking, it adheres to the management idea of the “customer as the center” and constructs “leading domestic and international first-class” internet banking development strategy, with the international first-class commercial Banks as the goal, making several process reengineering on internet banking system, in page style, the mode of operation it fully embodies human nature design, focus on customer experience and ease-of-use, let the clients to the internet bank, and then they can have a pure and fresh and user interface, and a set of simple operation flow, a cheerful operation experience.
(1) Personal Internet bank product characteristic analysis
Personal businesses of the internet bank are composed by the basic business, pay business, investment finance business and customer service these four big strategic business. The main features are:
1) page structure is clear, distinct, the style is simple and consistent, which can accord with the user habit.
2) Customer operations areas are generated operating style, customer operation is of convenience.
3) Simple customer’s functions, especially financial investment function is open for simple-version customers.
4) Inquires’ business sort is various, totally more than 100 inquires entrance, really reflecting the “people-oriented, inquiries are omnipresent.
5) Transfer function is perfect, clients can transfer funds to themselves, the other persons, even public enterprise or business organizations, still can make an appointment transfer, automatic transfer, mass transfer.
6) expends payments are close to life, customers available can pay pay cellular phone fee, telephone, water, electricity, etc Various kinds of daily living expenses for themselves or others., also can achieve an appointment payment and batch payment.
7) investment and management service are richful, including the personal foreign exchange trading, bank-security business, securities business three categories.
8) the ubiquity of on-line help, makes customer experience handy and omnipresent internet help.
9) intimate security measures, in addition to USBKEY, dynamic password card, soft keyboard, attached pyramid, multi-password protection measures, also provides the security information verification, suspend reserve service of internet banking, suspend the account function, account protection, nickname login and other security means, maximum to protect customer information and internet fund transaction security.#p#分页标题#e#
(2) the enterprise internet bank
1) Inquires function let the enterprise's financial director to grasp the enterprise account balance information or transaction details.
2) funds transfer function can pay to any bank account in anywhere nationwide, still can deduct the signed account or agreement capital, the way is diversified, can timing, and set the frequency, and set the balance, and set the amount, zero balance, etc.
3) Internet bank payroll agency service, reimbursement realize the paperless and informationization of the financial office, this can enhance the secret of wage information.
4) Internet bank withholding business realizes enterprise from individual dealers’ account to deal with money.
5) Fund settlement network realizes enterprises to centralize and unify monitoring and scheduling funds realize financial centralized management and increase the capital management ability.

5.1.4 Analysis of the status of marketing
AGRICULTURAL bank marketing can be divided into the head office, the branches, and sub-branches these three dimensions. Head office internet banking department is mainly responsible for the brand construction, responsible for the organization of the whole bank marketing activities, as well as the marketing of national large group clients of the headquarters, etc. internet banking department of Branches is mainly responsible for constructing distribution channels, making specific marketing plans, organizing the branches to develop the sales promotion activity, as well as the after-sales maintenance to the customers. Sub-branches are responsible for doing the specific marketing activities under the guidance of the branches, the company customer managers, individual customer managers and counter staffs use mastered customer resources and customer relationship to promote the individual customers and enterprise customers about internet banking.

In recent years the AGRICULTURAL bank pays more and more attention to the business of the internet bank in the Marketing, especially to Departments’ linkage and product binding sales. It makes use of the good customer relationship to do the marketing, such as the bank settlement, credit and loan marketing, this can explore customer managers’ potential in the business of the internet bank, as well as using the advantages of counter resources of numerous organizations and branches to guide and market clients, using the web site of the head bank for customer spilling publicity and marketing, use all sorts of social resources for marketing, with further multi-layered marketing, make the effectiveness of internet banking business to be improved. For enterprise internet banking business, mainly pay special attention to the big system, large group, big customers, pays special attention to their own clients, and aim at its high-quality customers; Personal business of the internet bank is for wealthy clients, who have good education background and are middle-aged and young. In the marketing way, through the door visiting, spot demonstration, collective training and other forms actively promotes the Internet banking services.#p#分页标题#e#

5.2 Problems of internet bank business for AGRICULTURAL Bank
Although the development of internet bank of AGRICULTURAL bank in the past two years has made great progress, while there are still some problems, outstanding performance are in the following aspects:
5.2.1 The internal operation management
(1) Insufficient recognition of the importance of the development of the internet bank
Mainly it reflects the basic banks still have insufficient recognition on the development of internet bank, which do not recognize that the development of the internet bank bring them with the potential benefits. While the managers focus on the profits and cost maximization, the staffs are popular to choose to sell products attaining the biggest profits, and the benefits brought by the internet bank to AGRICULTURAL bank is recessive.
(2) The inefficient management system
The internet bank is still following the physical multi-level management mode, and line level management is not clear. From its first-level branches to look, some branches’ business of internet banking belongs to the personal line, some belong to the company business line, some belong to the information technology line, some do not set independent department. As for Second level branches, a few of those have set up internet banking department, some belong to the science and technology or credit card department, some establish a specific hillock under the individual bank department or the company subordinate, and a small set up the post in the office. From the basic outlets to see, the posts bearing the functions of the internet banking business are multifarious. This kind of situation of management leads to head office to develop and deploy the internet bank in uniform, it is difficult to fully effectively and conformitily implement.
(3) The insufficient investment in resources.
It mainly reflects that the internet bank product research and development costs, marketing expenses, personnel reward costs are not enough, especially the investment equipment enlargement, research and development capacity competitive test center construction, disaster preparedness system construction and risk compensation mechanism, these basic investments are insufficient but are related with internet banking competitiveness. For example the Hong Kong banks give customers the usb Key for free.
(4) The internet bank’s marketing propaganda is not enough. For example ICBC (Industrial and Commercial Bank of China Limited) pays great attention to the internet bank marketing activities, allies 20 well-known fund companies to develop internet funds service together, hand in hand push 100 well-known web sites to promote business of internet bank. The momentum is big, the effect is good.
(5) Team construction is lagging, professionals are shortage. In recent years the internet bank business scale is expanding a few times, tasks also increase a few times, each branch internet bank’s professionals basically maintain the level several years ago, internet banking professionals are in severity shortage, mainly reflecting in system service support personals are insufficient, research and development staffs are not enough, marketing personals are lack, network economic researchers are lack, etc.#p#分页标题#e#
(6) Performance evaluation and the value creation of internet bank lack science and quantitative evaluation system. In the present organization framework, because the AGRICULTURAL bank has not been pushing internal pricing and value transfer, internet banking lacks specific effectiveness evaluation system, in the face of their respective business goals and interests, it is easy to produce the internal friction, so it is difficult to achieve orderly division of work and coordination.
5.2.2 Product applications
(1) The application is insufficient, trade structure is not reasonable
Some hot and popular businesses of the counter are not opened internet, such as enterprises’ foreign exchange fund management, personal loans and foreign remittance, sale and purchase of exchange, agency of insurance business. The foreign internet baning almost include all the traditional bank business, and there are plenty of innovation business varieties which the traditional banking have not, or traditional bank can not realize.

Trade structure is not reasonable, in 2010 personal internet bank’s trade sturcture is shown in Chart 5.1,
 
Chart 5.1 The structure diagram of personal internet banking’s transaction in 2010
unit: ten thousand times

(2) The business scales are small, the total volume of trading internet accounts for lower than others.
All personal Internet bank customers account for less than 10% of all over the individual customers, the company internet bank clients only account for less than 6% of all the enterprise clients. The rate of Individual mortgages, credit card customers, individual high-end customers open and use internet banking services also is very low. Bank of America has 33 million customers, the internet bank customers are close to 15 million households, and the rate reaches 45%.

By June 2011, the whole bank’s internet trades account for more than 30%, and compared with the advanced international bank internet bank trade rate 50%, there is still a gap.

5.2.3 Marketing
(1) The distribution channels are single, marketing is lack of innovation
Marketing channel mainly is network marketing, or averaging marketing lacks exploration. There are greater problems on internet marketing. The researches on how to make full use of network to look for the customers is not enough, and internet resources are failed to get fully effectively use.
(2) the head office’s unification marketing is inadequate. For example, ICBC and CMB (China Merchants Bank) often advertise in sohu, sina, taobao, ebay and other large websites, or with the well-known payment platform hold joint promotions.
(3) after-sales service system is not perfect. Internet banking clients rely on a computer, a telephone and other completely automated equipments, because computer equipments are speciality, clients will meet the abnormal situation, they need professional guidance in time, otherwise will lead to the customers to give up the use of internet banking products. Telephone banking center representative and the customer managers have not enough computer knowledge and internet bank knowledge, just rely on the limited internet bank professionals’ business support, this cannot meet clients’ need.#p#分页标题#e#

5.3 Advantages of developing internet bank business for AGRICULTURAL bank
In this case, to speed up the development of the internet bank for AGRICULTURAL bank , to increase the financial innovation, to adjust the business strategy have to be the inevitable choice, internet banking development will bring new competitiveness for the AGRICULTURAL bank.

5.3.1 the internet bank will improve customer loyalty
The internet bank combines with the traditional banking services, which should form the business outlets, the bank on the net, self-help bank and multi-channel comprehensive service interface and service system. On the surface, the bank on the net just increases the service channel, but in fact, through constructing multi-channel, integrated internet financial services platform, it makes AGRICULTURAL bank to achieve the interaction with the customers at any time and any place. According to the statistics of American Bank, after the use of internet bank service for three years, active internet bank customers’ deposit increase by 21%, loan increase by 32%, and while the non-internet bank customers only increase 10% and 25% respectively; Using the bank on the net, retained ratio improves 11%; In 2005, 55% of individual clients take the bank on the net and pay their bills internet as important factors for choosing a bank. According to foreign bank report found that for a commercial Bank, only have a current account customers, 50% will leave in 1 a 2 years; Only have fixed accounts enterprises, 30% will leave; But at the same time have regular, current account and internet bank, the rate of customers finally choose to leave is just 1%-2%.

5.3.2 the internet bank in the alternative outlets business and cost saving has effective results
Traditional Banks expanding business rely on simply adding business sites, which needs a lot of land, equipment, and funds or manpower resource input. In comparison, the bank on the net just needs a small amount of money, equipment, human, and can expand bank business development to larger region. According to “network world” reported data on November 1, 2011, according to the American research institutions’ survey, the comprehensive cost of internet bank accounts for 15%-20% of revenues, and a traditional bank is as high as 60%; the costs to open the bank on the net is only $1 million, and building a traditional bank branch’s cost is 1.5 million to 20 million$ a year, plus additional operating costs $ 350 to 500 thousand. Through different ways of each transaction the costs can be seen in table 5.4:
Table 5.4 The average calculation of bargain cost in different channels
 American Bank(dollar) HK Hangseng Bank (HK dollar) ICBC (RMB) AGRICULTURAL beijing branch (RMB)
Counter  1.07 1.95 3.06 3.10
ATM 0.27 0.8 0.83 0.74
Telephone bank 0.54 0.6 0.6 0.65
Internet bank 0.01 0.3 0.49 0.22#p#分页标题#e#

Through leading customers to open and use the internet bank service, not only can great decrease counter pressure, the most important is to liberate a lot of counter operation personnel, saving the managing manpower cost and resources; And the operating personnel turn into the marketing personnel, and enhance the customer marketing and service power, which promote the “trade-type” outlets to “sales-type” outlets, indirectly create considerable income and profits for Banks . Currently more than 50% of HSBC bank’s trading business has been through the internet bank channel to complete, the bank in the past five years has the fast growing business at the same time outlets reduce by 63.

(3) the internet bank embodies the “take the customer as the center” service concept, by providing personalized and experience type service, improves the service level and the bank service quality. Products and service Customers receive in the bank branch is the standardization, it is hard to satisfy the personalized needs of customers. The internet bank with the help of IT technology, customers can make personalized Settings of internet banking according to their fond and demand, thus customers can experience the trading different feelings from the traditional outlets. The internet bank provides 3A service, which means any time, anywhere, Anytime. Customers can avoid to wait in outlets, and save time, this is a traditional bank can not provide.

(4) The bank on the net is favor of implementing customer relationship management
The internet bank opens a new channels of communication between the customer and the bank, so marketing is more direct, and mutual assistance is more frequent. The bank can use network to do direct promotion to clients and communicate with clients mutually. Also, the bank business department can more easily find potential customers, the internet bank can always know the general situations of customers. Because the internet bank can manage the customers’ assets and liabilities, which can make effective use of customer information’s hiding business opportunities, the computer system can accord to the analysis of customer's account’s spending and income and investment distribution, provide investment advice and service by email. The bank management will change from the product-oriented to taking customers as the center.

(5) The internet bank has become the necessary means to marketing the key customers
Now, more and more clients improve their own management level, financial centralized management has become a trend. Clients put forward more and more high demand on banks’ cash management and integrated services, customers hope banks’ service can really realize value adding, improve the capital operation efficiency. While the traditional banking services is difficult to achieve customer cross-regional and effective cash management goals. Internet banking services can be customised for enterprise comprehensive, high efficiency, stable cash management service, help enterprise to achieve accelerated fund turnover and reduce the financial costs, efficient intensive management goals. Facts prove that, internet bank account management, financial services, personalized service, financial management have become a necessary means of attracting customers for banks. The internet bank has become an effective means of banking competition, and has become an important judge index for customers to a bank service standards.#p#分页标题#e#

In short, the internet bank can not only improve the service quality of the AGRICULTURAL bank, improve the image of the AGRICULTURAL bank, expand the major customers, but also can reduce the source of human spending, reduce the pressure of AGRICULTURAL bank in place of business or network construction, improve the overall economic efficiency of AGRICULTURAL bank.

5.4 SWOT analysis of internet bank business for AGRICULTURAL bank
After joining the world trade organization, the AGRICULTURAL bank is facing enormous challenges to develop internet banking business. It can be said that the opportunity and the risk coexist, both have advantages and disadvantages, below is the SWOT analysis of AGRICULTURAL bank to develop business of the internet bank.
5.4.1 Strengths
(1) AGRICULTURAL bank changes a lot in the mechanism, system, management structure, and achieved good economic benefits. By June 30, 2007, the domestic and foreign assets have breakthrough RMB 6 trillion yuan; its business income is 99.786 billion yuan, a year-on-year increase of 40.81%; it realizes profit before tax 50.542 billion yuan, a year-on-year increase of 54.03%; Net profit is RMB 34.255 billion yuan, a year-on-year increase of 47.50%; Earnings per share is 0.15 yuan, a 50.00% increase year-on-year.
(2) AGRICULTURAL bank has a large service network all over China, so this can carry out internet banking services well, and almost cities in China has its service network, so the advantages are obvious.
(3) AGRICULTURAL bank belongs to China local commercial bank, it has the cultural advantage contrast to foreign banks. The domestic enterprises and residents have a common cultural background and historical connection, so the market image is outstanding.
(4) AGRICULTURAL bank has a large number of customers resources, there is numerous customers who do not lack high quality assets.
(5) AGRICULTURAL bank has remarkable electronic achievements, with coverage of the country's large computer network system, it has the world's top bank information technology, which has large capacity, rich function of business processing system. Based on the strong and safe platform, internet banking business processing is fast and safe.
5.4.2 Weakness
(1) The managers and staffs in the basic banks have the inadequate understanding on the development of internet banking, neither have the consciousness to develop internet bank.
(2) Assessment mechanism is not sound; business of the internet bank is still the cost-center, not profit center.
(3) Compared with foreign Banks, actual capital strength is weak. Foreign Banks in China usually are the world famous banks. They have a plenty of financial industry giant “aircraft carrier”, capital strength is large. Because these large foreign Banks usually build their international network, and its multinational management ability is very good.
(4) And compared with ICBC, its internet Banks has certain gap#p#分页标题#e#
In 2007, baidu data center ranks for 10 internet bank of Chinese capital that Internet users pay the most attention, as shown in the chart 5.2:
 

Figure 5.2The ranking of the first ten Chinese banks that mostly eared by netizens

5.4.3 Opportunity
(1) The Internet users has expanded rapidly. China Internet network information center (CNNIC) released the latest “China Internet network development statistics report “ which shows that ended on July 20, 2011, the total number of users reach to 485 million, and the number of broadband Internet users reach 450 milion, to half a year the average every minute nearly increases 100 new Internet users, half a year's growth is close to 2006 the whole growth, Internet penetration rate is 12.3%, China's web sites reach to 1.31 million, the number of computer reach to 67.1 million. The Internet growth plays a great role in promoting of Internet users in the development of the bank on the net, especially the development of personal Internet bank.
(2) AGRICULTURAL Bank can learn to the foreign-capital banks to speed up its own pace of the business of the bank on the internet. Bank of America enters China and provide reference system and competitive object for AGRICULTURAL bank, can act as a demonstration, motivation and communication role, this will promote AGRICULTURAL bank to speed up the development of the pace of the business of the bank on the internet, and push forward the technical improvement and financial innovation process.
(3) More and more enterprises to establish internal fund settlement network, which provides more opportunities for AGRICULTURAL bank development of internet bank.
(4) the activities of the capital market light the national people's investment banking enthusiasm, the bank queue is serious, the market survey shows that the average time for customer queue in the site of the counter is more than 45 minutes, and stock, fund and other investment financial products trade frequently, which make people have tired of waiting in line, and more customers accept internet bank for business.
(5) The rapid growth of the Internet and the rapid development of electronic commerce make banks to play more and more obvious role in the third party payment market.
(6) the implement of “electronic banking business management method”, “the electronic signature law of the People's Republic of China”, “the electronic bank security assessment guidance” provide policy level guarantee and support for internet bank.

5.4.4 threats
(1) the foreign Banks will make use of the advantages of the internet bank to provide a full range of services for the domestic high-quality clients, so domestic high-quality clients lose. Foreign Banks can break through service areas and service time limitations through the internet bank business. They can serve high-quality domestic customers with mortgages, financing, trust, lease, insurance, securities underwriting and the discount brokerage and information consulting and other comprehensive one-stop services.#p#分页标题#e#
(2) The brain drain. Foreign Banks will attract domestic bank of talents with the favorable treatment, superior work conditions, the advanced management and alluring opportunity going abroad.
(3) The Trojan horse threat
Hackers and the Trojan horse overrun in the bank on the internet, making the security of the internet bank to be a growing problem. “The 2009 China internet bank report” shows that more than 50% even two-thirds of the people don't intend to use or can't dare to use the bank on the internet, the main reason is the safe problem. Rising latest security report also points out, the current mainland China appear new Trojan virus quantity which is more than 30% of the global total amount, which forces people to give up internet ban, because these virus need professional software to screen and killing, such as “internet bank thieves”, “spyware”, the security of internet transactions before is still the biggest worries in consumers' mind.

6. Recommendation
6.1 to optimize internal management system
6.1.1 To strengthen the construction of its organization
Internet banking involves personal and company customer department, and also involves finance, accounting management project departments, and is inseparable of operations, information technology and other departments. To make the business of the bank on the net to develop fast and catch up with the advanced level of the industry, AGRICULTURAL bank has to straighten out the management system of the business of the bank on the net. after the analysis of the existing structure, The author puts forward the following two solutions, see figure 6.1 shows:

Figure 6.1 The organization strueture diagram of Internet banking business

The scheme maintains the existing basic management system unchanged, the head office is established in level by the President as the director, the senior executives as the assistant supervisor, relevant departments consist of the internet bank carrying committee, strengthening the intensity of the head office’s executives organizations and promotion. Clearly define that the head office’s internet bank department is the organization of internet banking carrying committee to carry out the internet banking, and manage the relationship of internet banking department and customer department, technology department and operation support department, define the border of the relationship between them. First-Level branch also can establish the corresponding the internet bank carrying committee.

Clearly the tier-one branches must form internet banking department and increase the number of staff. The center cities should set up the customer support team which matches the business scale. The primary responsibility of the First-Level branch’s department of the internet bank is to organize the promotion and to manage the internet banking business, to plan, organize the publicity and marketing of the business of the internet bank, to implement the relevant regulations, standards and risk prevention measures to ensure the safe operation of the business. Generally speaking, the responsibilities of the department of the internet bank can be divided into the business management and risk prevention, product development, operation management, market marketing section. In addition, First-level branch should directly participate the marketing of the big customer system, directly contact with key target customers, and directly make after-sales service.#p#分页标题#e#

Due to that the Secondary branch economic environment, business scale, management performance have very big differences, and therefore cannot take “one size fits all” means, but should be based on all the actual situation to set up effective internet banking regulators. Secondary branch management mode can have the following two options (Kevin, 2007): (1) to set up a special internet banking management department, the management mode is for the bank that the economic environment is good, the size of the market is large, the business is developing rapidly; (2) to establish the leadership team that several departments participate the business of the bank on the net, even assumed command by the President, and the specific business is subordinate to a certain business department. For company customers’ marketing, through the public business and company business department leading; As for individual customer marketing, can be through the personal financial business department of the network; For a business management and risk prevention, may be realized by the aid of accounting settlement department; the technical support department is responsible for product promotion and operation management of internet banking, so as to form the pattern or so.

The scheme advantage: it can continue to maintain the current level management mode, don't involve structure adjusting, reform is relatively small, promoting difficulty and resistance are smaller, and it is easy to implement.

6.1.2 Strengthen personnel training, make professional team
The internet bank products are different from the traditional bank products, and it is the new product with a high content of science and technology, there is a process for customers using and accepting new products (Kevin, 2007). In the past few years AGRICULTURAL bank lacks personnel, from the head office to branches, barely increases personnel, especially for internet banking department, it is only through documents issuance to conveyance and emphasis, urges relevant departments to carry out the marketing task. Because there are no full-time employees in the basic branches about internet banking, plus all kinds of index are of very great pressure, the new products are being introduced, front desk clerks, customer managers in selling products, often can only carry on some simple sales, cannot introduce the detailed product, so lose a lot of customers. After Customers signing in the website, customer managers do not have time to use the equipment in the business site to train the customers, and because of the shortcomings of the professional knowledge, some customers long-term don't use internet bank and eventually become fixed accounts, and not make full use of the functions of the internet bank to improve the enterprise's financial management (Kevin, 2007).

Therefore, engaged in the business of the internet bank is a long hard meticulous work, should strengthen the basic line personal training, make professional team, with sufficient full-time personnel for the business of the internet bank. Strengthening institutions team construction is the special job responsibility for the business of the internet bank, first is strengthening internal management, and effective control and risk prevention; second is organization efficient business marketing for high quality customers and improving the need of social effect and economic benefits. The construction of institutions and members of the configuration can't stay at the early stage of the distributed management, so the staff should fully understand the importance of development of internet banking services in promoting the business development. That needs to strengthen the team building at the same time, which should first solve staffing and salary expenses, this is the actual problems, because at present the lower branches can not put full-time staff in place. If the full-time business personnel have assure, then internet banking business can be bigger and stronger.#p#分页标题#e#

6.1.3 to set up scientific internal evaluation and incentive measures
Briefly speaking, this mainly includes two aspects of contents, namely what the internet bank should evaluate and how to evaluate.

The staff appraisal should fully consider the application of positive incentives and negative incentives. There are varieties of positive incentives to employees, such as to pay the expenses for the marketing results, to reward money for marketing an effective personal or enterprise online banking user; regularly to discuss and elect the star of internet banking business, and give the material and spiritual double rewards, such as providing training, going abroad or a vacation opportunity, etc.

Negative incentives do not simply mean to use the criticism, the sanctions and fines. The application of negative incentives can be fully considered combination of other incentives, namely other index of the positive incentive should combine the relevant online banking indexes’ finishing status. As for the customer managers or clerks qualified for the authentication, comprehensive performance distribution and staff vital interests closely related work, if the employees are not up to the relevant indicators of the bank on the internet, which can cancel their certification qualification or lower level.

6.2 Marketing strategies

6.2.1 Product innovation
1) Comprehensive financial products and service which regard the high-end customers as the object is the focus of the online bank product innovation
American banking research experts point out that, through the online financial cross selling investment products, each customer’s lifetime value at least can increase more than $3000. Now the personal financial business of online banking although have been able to cover foreign exchange dealing, fund transactions, banking-securities transfer, gold trading, Treasury bonds and other financial products, while the product functions lack details, such as the funds cannot easily inquiry the net value, which is no market value analysis, so it is not conducive for customers to understand their holding funds’ specific benefits. In addition, the bank on the internet is the lack of insurance, loans, personal assets, liabilities, incomes and expenses analysis etc. For example AGRICULTURAL bank can develop online bookkeeping financial system, can let customers very easy to manage personal and family daily payments and the debt, clearly know the ins and outs of every money and provide strong financial budget and financial analysis report features, for themselves to order a week or a month family budget, and can at any time compare with the actual amount, in the overspending, the system can timely warn and help customers to keep track of the family financial situation. AGRICULTURAL bank also can develop customers specifically used for a big spending statistical analysis. for many families, for example, now in decorating new home their very headache is budget control, often because of the spending records is not clear and final budget overruns, using the system customers can clearly and easily control decoration in spending.#p#分页标题#e#

2) Product innovation should pay attention to the innovation of the process. From the current business processing flow, AGRICULTURAL bank in product design and development too much consider risk prevention and ignore the bank service convenience, the business of the online bank has so many formalities and operating links, complex degree is high. Along with the traditional banking competition intensifies, the customers in the business site can get very considerate service, if they are discontented when using the internet bank in any link, it is easy to give up, and continue to use counter service or choose other online bank business. For example, at present the customers in the use of the bank on the internet to buy fund, there is error information, and error information often back to customers with some code, many clients because are not clear reason and give up using.

3) to establish sales agent platform
Acting sales platform is for some specific subjects providing e-commerce platform service, for those that don’t have their web site, but want to run the electronic commerce business, although have the ability to develop and maintain their own business sites, but hope to rely on online bank’s advantage of rich resources to expand the business scope. This can provide convenience for all kinds of merchants. This platform has the simple and convenient operation, and greatly reduce the cost of enterprises’ development and maintenance, has a broad market prospect, and make the enterprise customers, individual clients and Banks to establish more close business contact, greatly enrich the bank website service varieties, to promote the internet bank’s further development will play a positive role in promoting(Iain, 2007).

6.2.2 Price strategy
The bank on the internet pricing should make full use of comprehensive pricing strategies, namely the bundling selling products combine product mix pricing strategy. Product mix pricing strategy means AGRICULTURAL bank comprehensively considers the series of products or services, formulate the overall goal price, does not pay attention to the single-handed cost and price for individual product or service, even some of the prices of the product can be lower than the cost, and through the low cost but high returns products or service income compensate for their losses, so as to realize the overall profits combination of products. For example, AGRICULTURAL bank should bind to sell online bank and financial card, fund card, credit card, the bank on the internet can determine the lower prices.

6.2.3 Online distribution strategy
The main contents of network marketing is to cooperate with the web site, and Internet service providers, partners, suppliers, vendors to establish relations, through the Internet means of AGRICULTURAL bank can better achieve the network marketing functions, and provide support for the increase product sales, enhance the brand value, improve the overall competitiveness of internet bank.#p#分页标题#e#
In network marketing system, marketing information and its transfer have mainly four aspects of features: l) network marketing information transfer is of high efficiency; 2) network marketing information transfer mode is of diversification; 3) network marketing information transmission channel is of diversification; 4) network marketing information transmission is a two-way street. In practical operation, AGRICULTURAL bank can sign with major e-commerce sites, for common development marketing promotion, and online payment, use interesting image design, encouraging slogan, offer a prize knowledge contest and other entertainment project to highlight the convenience of the bank on the net and technology advantages; Rely on web sites to collect customer feedback information(Iain, 2007); Can also through customer service representatives to provide seven days a week, 24 hours a day online customer support, in order to make customers to feel it is not unsubstantial. Through the Internet, the customer service representatives for more customers can provide better tailored services. But along with interactive video and other new technology extensive use, the relationship between customer service representative and the customers will be further strengthened.

Internet services merchants are also a very good distribution channel, they not only have the channel, and customer resources. For example AGRICULTURAL bank should cooperate with telecommunications Internet service providers, when their client managers install broadband for users in the same time can sell the bank on the internet, AGRICULTURAL Bank can provide incentives pay for these customer managers.

after insurance company sales representative finishing sales, insurance companies and partners in the joint marketing lead customers to pay insurance cost through the bank on the internet, etc.

6.2.4 Promotion strategy
The internet bank sales promotion refers to that the financial institutions use the proper way to propaganda, report and demonstrate their own online banking products and services to clients, so that to attract their attention and inspire their desire to buy and promote their purchase behavior. Promotion is one kinds of the marketing activities.

On the whole, the internet bank sales promotion mode can be divided into personnel promotion and the non-personnel promotion. Staff promotion refers to the marketing personnel and customers face-to-face contact, telephone contact, etc to promote online bank trades activities (Iain, 2007). The non-staff is through advertising, public relations, business promotion, and other ways to promote the bank on the internet trades activities. Advertising can be divided into media advertising and Internet advertising; Public relations refer to through the various ways to juggle the relationship between the bank and the public, set up a good image for marketing online bank and win favorable external environment; Business promotion is through a series of preferential, consultation and supporting services to attract customers attention and make use of a series of activities on the bank on the internet.#p#分页标题#e#

6.3 Security strategy
From the system security guarantee, the client safety and client identification, transaction process and business process control etc it can make the bank risk protection.

6.3.1 Set up a reliable system structure
Reliable system structure is the foundation to establish the safety system of the bank on the internet. AGRICULTURAL bank can set up multiple firewall between the Internet and online bank server, and each firewall uses different manufacturers products, set up different security strategy, and increasing filtering routers, create encrypted communications gateway server, increase the difficulty of the hackers attacking the firewall, and at the same time must effectively realize internal and external nets’ isolation and access control;

Adopt international advanced network safety testing software, 24 hour monitoring system all service activities, and regularly to do network system security analysis, so as timely discovery and correct existing weaknesses and flaws in the bank on the internet, and do network system security analysis, remedial measures and suggestions to enhance security strategy, reach the purpose of network security.

It should Strengthen the monitoring and audit. Audit is to record the process of users using the computer network system for all activities, it is an important tool to improve the security (Iain, 2007). It not only able to identify who visits the system, can also points out that how the system is to be used. To determine whether or not a network attack, the audit information is very important to determine problems and the attacking source. At the same time, the system of events record can more quickly and systematically identify the problem, and it is the important basis of accident treatment in the back stage. In addition, through constantly collection and accumulation and analyzing the security of the event, selectively auditing and tracking to some of these sites or users, so as to find or provide powerful evidence on the potentially destructive behavior. Therefore, online banking system in addition to use ordinary network management software and system monitoring management system, but also make full use of the present mature network monitoring equipment’s or real-time intrusion detection equipment’s, in order to real-time examination, monitoring, alarm and blocking in network on the passing in and out of the common at all levels of local area network operation, so as to prevent the attack and crime (Jaeques, 2004). And establish a detailed safety audit log, the relevant departments shall regularly to assess where may cause system fault interrupt or the various causes, and prior work out the corresponding disaster recovery plan.

In the development of the internet bank applications must have a clear distinction of Web application layer, data communication layer and the data layer to ensure all levels of security policy independence; to distinguish the client layer, the application layer and data service layer should helps to refine safety risk, and it is easy to quickly analyze the causes and control in time and eliminate the threat when threatens occur.#p#分页标题#e#

System design must store the customer some confidential information, and can not store encrypted gold-digging in the database, for example, passwords used by customers in the internet bank, AGRICULTURAL bank must pass irreversible encryption algorithm store in the database, even if hacker enter the database system, get password fields, unable to decipher the original password.

 

The AGRICULTURAL bank should strengthen internal rules of construction, prevent operation risk and perfect moral risk to occur. In the development of software, the AGRICULTURAL bank can't depend entirely on the outsourcing company, key module should finish relying on the technical strength of AGRICULTURAL bank, and pay attention to the protection of intellectual property rights. When cooperating with the outsourcing companies, AGRICULTURAL bank must sign the security agreement with them.

6.3.2 to strengthen the safety control and client customer recognition
in strengthening the safety protection of clients, AGRICULTURAL bank can cooperate with the renowned international companies, specifically to develop a special set of clients input controls to replace traditional web controls, to prevent malicious programs normal keyboard events, access to capture users sensitive information, and obtain the input control in the protection of intellectual property rights, and through the additional input random verification code to prevent malicious program of violent attacks.

The use of advanced encryption authentication technology, to provide safe and reliable digital certificate, cancel the static trade password, introduce USBKEY for clients, compulsorily promote token and dynamic password card and other safer storage medium digital certificate. As the current domestic high-end online bank safety tools, USBKEY can easily put an end to viruses, Trojan horses, hackers and fake website means of fraud; Token and dynamic password card are equivalent to the online bank dynamic password, when customers in the use of the online bank, according to random password system to deal with the trade.

If can be based on fingerprint authentication, the authentication of the iris biometric identity authentication technology combined with digital certificate, it can better solve client safety problems(Jaeques, 2004).

To strengthen the management and control of certificate of customers, for example, when customers sign online banking business, AGRICULTURAL bank should leave their mobile phone number, when customer firstly download certificate using text messages to notify the customers, and after obtaining the customers’ mobile phone short message confirmation can complete certificate downloaded. Mobile phone can also be used in some transfer payment transactions, the large amount of trade confirmations, even if the illegal means get customer password, trade password and certificate and other information, neither can complete transfer and large pay.#p#分页标题#e#

The client design should increase some customers’ personalized settings to help customers to recognize the fake site, for example customers can set up web elements; Set some personalized private information shown on the website according to their needs; Customers set certain transactions in need of extra password control according to their own risk bear ability, such as backup certificate, large transfer, etc.; Still can provide customers in the counter to set close transfer function, which only transfer between the several accounts, if criminals obtain customer password and certificate information, also unable to transfer.

Enterprise online banking business should strengthen the management of licensing models, when clients deal with the online bank transfer payment, group fund management and other kinds of important business, the amount in different range set different authorized combination(Jaeques, 2004). The purpose of setting the business license pattern is to differently manage the important business and general business, big trade and small trading and implement different levels of the authorized control mode. Also can put the ideas in personal control of safety innovation, that is the client may, according to their own needs, set up authorization roles, for example, both sides of husband and wife can inter-authorize, but this way will increase the complexity of customers to use, can only as customers personalized function setting to offer to the customers.

Also, most of the customers are due to a lack of computer related knowledge, they know very little about preventing the virus, so they will be attacked by network fishing virus software. Head office can cooperate with the well-known virus software development company, to achieve genuine virus software discount purchase price to provide to AGRICULTURAL bank customers. The software will enjoy to buy the anti-virus software all of the client's right, related training, regular upgrades, after-sales service, etc.

6.3.3 to strengthen the safety consciousness
To take several channels and variety ways for customers safety training and customer common sense training can help them to form a good habit: don't open the e-mails with accessories, when need to browse the web sites of the bank, the customers should browser the web site of the bank, or will the real website records in the clip on the inside, login it and the use of online bank account as far as possible, when inputting password use the soft keyboard the system provides (Jaeques, 2004); Choose the password which is not easy to guess, do not use birth date number, telephone number or commonly used name; Don't tell anyone about the password, and avoid writing them in the diary or in the computer; the password should not used for other service excep for the online bank; online bank password and account transfer payment password should be of difference, and regularly changes password (Iain, 2007); Don't in public places (such as Internet cafes, public library, etc) use the online bank, in the time of using the online bank, click “end” button to finish logged on and use, and download and install client security controls, download and install the latest regular operating system and web browser security program or patch, install a personal firewall, and update antivirus software: examine regularly transaction records, grasps the account changes; alert email link, etc.; make full use of the news media to publicize the internet security risk to the public, tell the public how criminals use the bank on the internet to steal the clients' money, improve customer recognition authenticity, risk prevention ability.#p#分页标题#e#

It should strengthen hackers’ technical and anti-virus research, strengthen collaboration and communication, grasp the latest Internet crime dynamic and virus information in time, take effective measures of protection, for example to inform client antivirus programs, to upgrade the VIP customers, to provide door-to-door service, etc.

6.3.4 To establish network bank risk compensation system
Taking effective measures to enhance customer’ confidence on use the bank on the internet, customers in the use of the bank on the internet will have some losses without fault in the process, bank should firstly compensate them, in order to eliminate the customers worry. As for risk compensation scale, the bank can consider 1% of the internet bank income a year, the total direct provision to 50 million yuan scale after rolling to fill carry. To understand, bank of America pays$70 million each year, CMB sets up 100 million risk reserve funds. AGRICULTURAL bank should make the convenient and fast compensation examination and approval procedures, ensure rapid compensate, prevent the media hype, or cause a bad influence.

6.4 Summary and limitations
In a word, the recommendations for Chinese internet bank business include three aspeacts. First is TO OPTIMIZE INTERNAL MANAGEMENT SYSTEM, including to strengthen the construction of its organization and to straighten out the business management relations, to Strengthen personnel training, make professional team, to set up scientific internal evaluation and incentive measures. Second is MARKETING STRATEGy, including Product innovation, Price strategy, Online distribution strategy, Promotion strategy. Third is the SECURITY STRATEGY, including to set up a reliable system structure, to strengthen the safety control and client customer recognition, to strengthen the safety consciousness, and to establish network bank risk compensation system.

In the survey, because of the time limitation and energy limitation, the survey sample is not wide enough, the author only selects Agricultural Bank as the sample to analyze its internet bank business, while we know that there are numerious banks in China, including foreign banks, state-owned banks, city banks, joint-stock banks, and so on. so the data collected in this study will lack representative. What’s more, this dissertation lacks more quantative data, while qualitative approach is the main method in this study. In the future study, more data should be collected through large sample survey, and more methods should be used to collect more information and data, such as questionnaire, interview and so on.

References
Ali Yakhlef, (2001) “Does the Internet compete with or complement bricks-and-mortar bank branches?”, International Journal of Retail & Distribution Management, Vol. 29 Iss: 6, pp.272 – 281

Blaxter, (2001), research methodology principles, 4thed. McGraw-Hill International (UK) Ltd.#p#分页标题#e#

C.Edwin Cheng (2006) AdoPtion of intemet banking: An emPirical study   in HongKong, Decision SuPPort Systems (42)

Carlos Flavián, Eduardo Torres, Miguel Guinalíu, (2004) “Corporate image measurement: A further problem for the tangibilization of Internet banking services”, International Journal of Bank Marketing, Vol. 22 Iss: 5, pp.366 – 384

Chanaka Jayawardhena, Paul Foley, (2000) “Changes in the banking sector – the case of Internet banking in the UK”, Internet Research, Vol. 10 Iss: 1, pp.19 – 31

Chau Au, Tam, 1988, Marketing Theory, Evolution and Evaluation, New York: John Wiley& Sons: 120-133.

Childers, M. L, et al, 1972, Marketing Theory and Applications, Chicago, IL: American Marketing Association 3: 431-438.

David. J, Luck. O.C. Ferrell（1985）, marketing strategi and plans（second edition）, prentice Hall, Inc, Eaglewoo, New Jersey.

Demetrios Vakratsas, 2008, The effects of advertising, prices and distribution on market share volatility, European Journal of Operational Research, Volume 187, Issue 1, 16 May, Pages 283-293

Emory and copper, D.A., (2009), Business Research Method, 4th ed., Homewood, Il
Iain MeKayb (2007) http://www.ukthesis.org/ygsslwdx/ Functionality and usability in design for estatements in eBanking serviees, Interacting with Computer (19)
J.Paul Peter, Jerry C .Olson, 2000, customer behavior and marketing strategy, international financial press, p12.
Jaeques Bughin(2004) Attack or convert?:  early evidence from EuroPeanon –line banking, Omega (32)

Jan Mattsson, Helge Helmersson, (2005) “Internet banking: modelling the e-competence of customers with a text-analytic CIT approach”, International Journal of Bank Marketing, Vol. 23 Iss: 6, pp.470 – 483

Jarvenpaa Tractinsky, Vitale, 1999, Multiple-issue auction and marker algorithms for the World Wide Web, Decision Support Systems, 26 (7): 49-66.

Joel D. Wisner, William J. Corney, (2001) “Comparing practices for capturing bank customer feedback - Internet versus traditional banking”, Benchmarking: An International Journal, Vol. 8 Iss: 3, pp.240 – 250

Jørn Flohr Nielsen, (2002) “Internet technology and customer linking in Nordic banking”, International Journal of Service Industry Management, Vol. 13 Iss: 5, pp.475 - 495

José Mauro C. Hernandez, José Afonso Mazzon, (2007) “Adoption of internet banking: proposition and implementation of an integrated methodology approach”, International Journal of Bank Marketing, Vol. 25 Iss: 2, pp.72 – 88

Kent Eriksson, Katri Kerem, Daniel Nilsson, (2005) “Customer acceptance of internet banking in Estonia”, International Journal of Bank Marketing, Vol. 23 Iss: 2, pp.200 – 216

Kent Eriksson, Katri Kerem, Daniel Nilsson, (2008) “The adoption of commercial innovations in the former Central and Eastern European markets: The case of internet banking in Estonia”, International Journal of Bank Marketing, Vol. 26 Iss: 3, pp.154 – 169#p#分页标题#e#

Kevin Grant (2007) Factors affeeting the adoPtion of Internet Banking in HongKong- implications for the banking sector, International Journal of Information Management 27

Milind Sathye, (1999) “Adoption of Internet banking by Australian consumers: an empirical investigation”, International Journal of Bank Marketing, Vol. 17 Iss: 7, pp.324 – 334

Minjoon Jun, Shaohan Cai, (2001) “The key determinants of Internet banking service quality: a content analysis”, International Journal of Bank Marketing, Vol. 19 Iss: 7, pp.276 – 291

Minna Mattila, Heikki Karjaluoto, Tapio Pento, (2003) “Internet banking adoption among mature customers: early majority or laggards?”, Journal of Services Marketing, Vol. 17 Iss: 5, pp.514 – 528

Neuman K.J. (2006), Social Research Methods: Qualitative & Quantitative Approaches, Sixth Edition. London: Allyn & Bacon

Niels Peter Mols, (2000) “The Internet and services marketing – the case of Danish retail banking”, Internet Research, Vol. 10 Iss: 1, pp.7 – 18

Nina Mesiranta (2006)Consumer Perceptions of Internet banking in Finland: The moderating role of familiarity, Journal of Retailing and Consumer serviees (11)

PAN Cheng-fu (2006) Network Externality and Internet Finance Development; Commercial Research; 14

Pedro Hidalgo, Enrique Manzur, Sergio Olavarrieta, Pablo Farías, 2008, Customer retention and price matching: The AFPs case, Journal of Business Research, Volume 61, Issue 6, June, Pages 691-696

Peter J. LaPlac, 2008, Industrial marketing management, Industrial Marketing Management, Volume 37, Issue 3, May 2008, Pages 245-246
Philip Gerrard, J. Barton Cunningham, (2003) “The diffusion of Internet banking among Singapore consumers”, International Journal of Bank Marketing, Vol. 21 Iss: 1, pp.16 - 28

Philip Gerrard, J. Barton Cunningham, James F. Devlin, (2006) “Why consumers are not using internet banking: a qualitative study”, Journal of Services Marketing, Vol. 20 Iss: 3, pp.160 – 168

Philip Kotler, 2005, Marketing Management (10th edition), the Chinese People University Press.

Saunders, (2003), Research Methods for Business Students. 3rd Ed: 89
Serkan Akinci, Safak Aksoy, Eda Atilgan, (2004) “Adoption of Internet banking among sophisticated consumer segments in an advanced developing country”, International Journal of Bank Marketing, Vol. 22 Iss: 3, pp.212 – 232
SUI Li-ping (2005);The Comparative Analysis of Cyber-Banks between China and Foreign Countries;Research On Financial and Economic Issues;02
WANG Chen(2006);The Theory Analysis of the Relation between E-money and Monetary Policy;Journal of Kaifeng University;02

Ya-Yueh Shih, Kwoting Fang, (2004) “The use of a decomposed theory of planned behavior to study Internet banking in Taiwan”, Internet Research, Vol. 14 Iss: 3, pp.213 – 223#p#分页标题#e#
Ying Long (2003) Internet Bank Development and Supervision in China, Journal of Finance (04)
ZhengYan, 2009, the research on the development and countermeasures of Chinese internet bank, Puking University Press

Zhong Tou (2011), 2011 -2015 China internet banking industry annual report,

Ziqi Liao and Michael Tow Cheung (2002) “Internet-based e-banking and consumer attitudes: an empirical study” Information & Management, Volume 39, Issue 4, January, Pages 283-295