Mega Bank Annual Report 2017

19 Annual Report 2017 -19- II. Negative Factors „ In 2018, domestic banks need to improve the capabilities of relevant professionals in the areas of anti-money laundering and terrorist financing, expand relevant departments, and improve software and hardware equipment. Financial technology innovation, demand for equipment, and marketing and promotion will also increase the operating costs of banks. „ The commercial models of domestic banks to expand the overseas market and financial technology market are gradually changing. Facing the southward development, customs and habits vary greatly in different countries and the demand for financial technology innovation and research and development is high. The importance of information security and risk control continues to increase, and recruiting relevant talents and accumulating experience will become challenges for domestic banks in the area of human resources. „ China continues to adjust economic and industrial structures. Risks, such as corporate liabilities and high increase rate of housing prices, continue to grow; the credit structure of local Chinese companies may become weakened and the asset quality of domestic banks in China may be weakened as well. III.Winning Strategies „ In order to go beyond traditional banking business and management models so as to develop new businesses and increase revenue, banks should accelerate the development of financial technology, absorb multidisciplinary talents, strengthen employee on-job training, cultivate comprehensive financial talents, and continue to improve information security mechanisms. „ In order to improve the situation of excessive competition and lower spreads in the domestic banking industry, banks should actively improve competitiveness and accelerate the international layout, and further develop overseas credit markets with larger spreads. Moreover, banks should continue to focus on wealth management businesses, enrich product lines, meet the investment and wealth management demands of customers, and increase the service fee income of banks. „ There are still many variables in the global economy; while laying out overseas markets and developing businesses, banks should strengthen various relevant risk control and compliance mechanisms and pay attention to principles of risk diversification. IV.Mega Bank ’ s Niche „ Mega Bank owns expansive global presence and international banking expertise, enhancing the bank ’ s diversification and profitability. „ Mega Bank maintains the highest foreign deposit balance among domestic banks ever since.