OREANDA-NEWS. July 08, 2013. In order to strengthen product innovation in major fields and reshape the product R&D management system, Agricultural Bank of China Limited (ABC) formulated and issued the 2013-2015 Product Innovation Plan of Agricultural Bank of China (the “Plan”) recently.

According to the reality in product innovation, the Plan points out that in the next three years, by following the criteria of a top-grade modern commercial bank and the law of product overall lifecycle management, ABC will reshape its customer-centered product R&D management system featured by “overall planning, whole process management and full participation”. It will focus its advantageous resources to enhance product innovation in major fields, accelerate building of product manager teams, improve product application ability and promote ABC product innovation to grow into a leading player, so as to elevate the comprehensive competitiveness of ABC products.

According to the Plan, ABC will focus on innovation hot spots such as supply chain finance and cash management to construct a corporate product system with noticeable advantages. On the one hand, it will build up an online supply chain financial platform in line with the trend of corporate supply chain management, and provide comprehensive solutions for domestic and foreign trade and local and foreign currencies to follow up globalization of enterprises. On the other hand, smart deposit wealth management, settlement package and cash management products will be developed to promote transformation and upgrade of enterprises towards performance finance.

Meanwhile, bank-government cooperation will be deepened, and product innovation will be enhanced in agency finance and fields related with people’s livelihood.
To meet the increasingly higher demand for consumer finance, ABC will spare no efforts to build up a retail product system with a whole range of products. It will develop financial IC card into a strategic product with mighty functions, advanced technologies and wide application, and promote innovation in credit card payment channels and functions. Efforts will be made to construct a mobile financial product system covering all types of mobile terminals, establish a new e-commerce financial platform, improve service for investment and wealth management, and accelerateb planning for wealth management and private banking. A personal loan product system with rich variety of products, distinct layers and conspicuous advantages will be developed.

To seize the opportunity of “agriculture modernization, agriculture industrialization, rural industrialization and rural urbanization” and improve its advantages in Sannong product, ABC will build up a product system covering related industries and major cluster customers so as to provide core product support for transformation of Sannong business. It will establish exclusive product lines such as Sannong customer consumption and investment along with income rise of rural and county residents and consumption upgrade. By relying on the “Kins Farmer Benefit” project, it will improve comprehensive service ability for Sannong channels and products. In the next three years, in line with the development trend of capital market, ABC will deepen innovation in bank wealth management, precious metals and foreign exchange, reinforce core competency of asset management products, and shape the custody brand of ABC by deepening cooperation with various financial institutions.

Regarding innovation in the product R&D management system, the Plan specifies that ABC will further reshape the product R&D management system of the Head Office, perfect management framework of the Product Innovation Management Committee, smoothen the matrix cooperation among front, middle and back offices, and establish scientific and efficient R&D procedures and an operation mechanism. At the same time, ABC will also step up efforts in tapping into innovation potential of branches, improving forward-looking innovation ability, enhancing training and data analysis & evaluation, building up product innovation teams, and strengthening incentive & restrictive mechanism and risk management for innovation in a bid to improve innovation management capability.