The banking and insurance industry has launched a tough battle against internal competition. Recently, financial regulatory departments and industry associations in Guangdong, Anhui, Ningxia, Ningbo, Zhejiang and other places have successively spoken out to rectify "internal competition", resist unfair competition methods, and promote the healthy development of the financial industry. Industry insiders believe that financial institutions should start from the financial market and customer needs, based on their respective functional positioning and resource endowments, transform from "price competition" to "service competition", and create differentiated competitive advantages through exploring the potential of sinking markets, optimizing the quality and efficiency of financial services, and empowering digital transformation, continuously improving their ability to develop steadily and serve the real economy. Many regions are resisting the "involution style" competition and rectifying the "involution style" competition in the financial industry, which is expanding from Guangdong to multiple regions. Guangdong's financial industry took the lead in proposing "anti internal competition" and issued a self regulatory agreement. Shanghai Securities News reporter learned that Guangdong's financial regulatory authorities have recently issued a negative list of "internal competition" in the banking and insurance industries, guiding industry associations to study and formulate self-discipline conventions against unfair competition, and promoting industry governance to enter the track of institutionalization and standardization. At the end of July, the Anhui Xuancheng Banking Association proposed to adhere to compliant operations, resist internal competition, and strictly adhere to the bottom line of interest rate pricing; Focusing on incremental markets and optimizing the quality and efficiency of financial services; Strengthen industry self-discipline and jointly establish cooperation mechanisms. In Ningxia, the local banking association held a symposium on the "internal competition" situation in the industry, proposing to deepen the construction of self-discipline mechanisms, guide various banking institutions to strictly abide by laws, regulations, and industry ethical norms, jointly create a rational, healthy, and win-win industry development ecology, and focus on creating a high-quality and healthy industry development environment. The insurance industry has also joined the anti involution team. Since the beginning of this year, insurance industry associations in Fujian, Anhui, Hebei and other places have successively issued conventions or industry initiatives to resist internal competition, vicious price wars, false advertising, defamation of peers and other behaviors. For example, the Fujian Insurance Industry Association has issued the "Self discipline Convention for Personal Insurance Banking and Insurance Business in Fujian Province", which proposes that insurance institutions should make every effort to prevent internal competition and shall not engage in illegal activities such as false commission reporting, vicious competition, and off balance sheet expenditures. In the view of Dong Ximiao, Chief Researcher of the China Merchants Association, advocating for financial "anti involution" in multiple regions will help promote the formation of a multi-level, widely covered, and differentiated financial institution system, allowing various institutions to provide differentiated products and services for different customer groups based on their respective functional positioning and resource endowments from the perspective of financial markets and customer needs, continuously improving their ability to develop steadily and serve the real economy. The 'internal competition' in the financial industry is directly reflected in price competition, with the sword pointing towards disorderly price wars. In recent years, there have been numerous phenomena such as consumer loan interest rates falling below 3%, disguised interest subsidies to attract savings, and low-priced competition for customers, which have brought about a vicious cycle. Large banks have low funding costs and sufficient financial supply. The business of large banks is sinking, interest rates are rapidly declining, and the market space of small and medium-sized banks is being squeezed. ”A representative from a city commercial bank in East China told reporters that some small and medium-sized banks have to lower their loan conditions in order to retain customers, which has put pressure and challenges on their operations. The direct impact of the "roll" price is that the net interest margin, an important indicator of a bank's profitability, continues to decline. Data shows that in the first quarter of this year, the net interest margin of commercial banks dropped to 1.43%, reaching a historical low. The reporter found that the "anti internal competition" has gradually penetrated into the banking business level. For example, the Ningbo Banking Association has suspended the practice of "rebate" for housing loans; The Guangdong Banking Association advocates for rational pricing, strict management of rebates, and proposes multiple advocacy and prohibitive clauses. The fundamental reason for seeking opportunities for competition in differentiation lies in homogeneous competition, while the key to breaking through lies in innovation. Industry insiders believe that there are opportunities for the financial industry to bid farewell to "internal competition", including exploring the potential of sinking markets, improving the quality and efficiency of financial services, and leveraging digital transformation to create differentiated competitive advantages. The banking business is complex and multifaceted, providing excellent corporate services while combating internal competition. The Xuancheng Banking Association suggests that banks should shift their focus of competition towards product innovation and service improvement, increase credit support for small and micro enterprises, rural revitalization, technological innovation, and other fields, expand incremental customers through differentiated services, reduce inefficient competition for existing customers from other banks, and promote healthy growth in credit scale. A branch manager of a state-owned large bank in Shanghai told reporters that to overcome the internal competition dilemma, banks need to respond promptly and provide good services. As the 'last mile' for service enterprises, let customers feel the warmth of 'sending charcoal in the snow'. Secondly, we need to continuously upgrade and iterate our products, visit enterprises more frequently, gain a deeper understanding of customer needs, and increase the financial accessibility for customers. The third is to closely follow the policy guidance of the "Five Major Articles" and seize the business focus and incremental opportunities. Small and medium-sized banks should adopt differentiated competition strategies, return to their roots, leverage their strengths and avoid weaknesses, and truly embark on the path of "small and beautiful" and "small and refined" development. Compared to state-owned large banks, our small banks have their own advantages, capabilities, and market value, such as flexible mechanisms and personalized services. We can deeply understand and quickly respond to the needs of local customers, and provide customized financial products and services, "a rural commercial bank official told reporters. Digital transformation is also a good way to improve service efficiency. In the past, it was' people looking for data ', but now it is gradually shifting to' data looking for people '. Our business personnel can now directly use the retail credit operation dashboard to intuitively feel the impact of data on business, making data no longer detached from business scenarios, greatly improving service efficiency, "said a representative from the retail credit department of a joint-stock bank. (New Society)