A Study Of The Development Of Personal Wealth Management Business At China's Commercial Banks

The rapid growth of Chinese per capita GDP has brought a rising demand for the service of personal wealth management. Meanwhile, foreign banks will be enjoying real national treatment by the end of this year, which means they will target their service at Chinese citizens. With mature philosophy and more experience, their business in the field of personal wealth management sees larger volume, lower risk, broader scope of service and more stable income. Therefore, personal wealth management is expected to become a battlefield for domestic and foreign banks. This thesis tries to start a study against such backdrop. In China, personal wealth management service is still at infant stage but is seeing a promising market. And the significance of exploring such service has been perceived by all domestic banks. Chapter I & II give a thorough definition of 'personal wealth management' and an introduction to the business model and features of foreign banks in this regard. Personal wealth management service has a history of around ten years only in Hong Kong. At the early ages, it was faced with similar challenges from foreign players. The Hong Kong experience would be enlightening to the domestic banks to some degree.Driven by the rising market demand, the domestic banks have begun to engage in personal wealth management business with some successful cases. But they still have a long way to go in terms of customer targeting, service positioning, business management, marketing and expertise, which will be explored in chapter III. How to combine foreign experience with local realities to work out a strategy for the development of personal wealth management service is an issue deserving attention from all domestic banks. A big leap for domestic banks would rely on customer segmentation, diversified and quality service and better customer management system. Some suggestions to the domestic banks on current strategy are put forward in the last chapter.The thesis is intended to highlight the huge market potential in personal wealth management and to study the future trends as well as to offer some personal suggestions on the strategy of development to the domestic banks.