In view of the status quo of small banks in China, the study put forward a strategic transformation framework for them based on the perspective of Composition-based View which provides a new strategic transformation path. Moreover, the appropriate measures that proposed for the implementation of small banks in transition provide a new way of thinking. Entrepreneur ability and collaboration-oriented are internal drivers of banks to implement the strategy while availability of external resources and customer demand areexternal drivers. According to the framework of the compositional strategic transformation, compositional strategy can be implemented by banks via compositional-offering and compositional-competition