Yu'ebao is a burgeoning online financial product, which can exert impact on banks. The paper thus aims at analysing the impact of Yu'ebao on banks in Xingcheng. By comparing the regional banks in Xingcheng and the overall banking industry, the paper attempts to explore the advantage as well as disadvantage of banks in Xingcheng, whilst suggesting strategies to avoid competition and maximise profit.
The study is conducted from either micro or macro dimension. The time scale of the study is consisted of two periods, i.e. September, 2013 and April, 2014, with four individual sections in total. In particular, the software Eviews is utilised for the macro dimension, while quesionnaire is used in the micro dimension. Finally, a natural conclusion is drawn upon on the basis of the analysis findings.
The study discovers that the impact from Yu'ebao on banks in Xingcheng is insignificant, but their response to the impact is ineffective accordingly. This is because of the underdevelopment of the local economy in Xingcheng, the weak consciousness among residents of managing money, and a low level of resources available to regional banks.
Against such backdrop, the paper argues that the consciousness among residents of managing money in Xingcheng should be improved by highlighting its importance. At the meantime, the level of resources should be elevated in order to develop more competitive financial products.
