The global financial market, as well as domestic one has undergone fundamental changes. Such changes, which largely affect the need of institutional clients of those domestic commercial banks, urge a deliberate product innovation accordingly. This paper, with a deep insight into those changes in financial market and a forecast eye on institutional client’s need, summarize the most advanced product development experience. We explore those factors influencing client’s financial need and conclude some integral feature and trend of such need, which further leads to a discussion into the status quo and shortcomings of domestic banks concerning on their product development capacity. In the following case study, we focus on the product innovation mechanism of Bank A, and offer several advices for its improvement. In the final section, we give some key elements for a successful production innovation.
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