Study On Personal Finance Services In Commercial Banks Of Our Country

Personal finance service of Chinese commercial banks starts late, but has developed rapidly since 2006 and become the main objective in the field. The competition is very fierce for the emergence of foreign banks. Statistics show that the average annual profit from personal finance service of US banks has been 35% in the past few years, with 12%-15% annual increase. Concluded from the experience of foreign banks, personal finance service, with the advantage of large volume, low risk, broad business scope and steady profits, occupy an important position in the development of commercial banks. CITIC Industrial Bank Guangdong Branch first introduced personal finance service in 1996. Since then personal finance market continues to expand with the increasingly high income and financial consciousness of Chinese residents. Personal finance service has gradually become the most important because it is a new profit growth point and has great potential for development. Nevertheless, there exist many problems in personal finance service of Chinese commercial banks. The author of this paper, based on personal working experience and environment, makes tentative explorations into it.The whole paper is divided into three parts:Part One: Current Situation of Personal Finance Service of Chinese Commercial Banks. First, the author carefully studies the definition of personal finance service given by commercial banks home and abroad, supervising organizations, and financial standards committee, of which the definition given by Chinese Financial Standards Committee is the best, being comparatively complete, comprhensive and in-depth. Then, the author studies the classification of personal finance service, summing up its 7 characteristics. The author analyzes the development of personal finance service of domestic banks, the present state and characteristics of financial market, the risk and supervising requirement confronted by personal finance service. Eight problems existing in the current development are then put forward by the author, which must be given a high degree of attention and solved immediately. Otherwise, it will hamper the development, cause great risk and have bad impact on the reputation of commercial banks.Part Two: Development and Characteristics of Personal Finance Service of Domestic and Foreign Commercial Banks. Personal finance service has early start and mature development in foreign countries. It experiences three phases: embryonic stage, formation and development peroid and maturity period, with the characteristics of much developing space, wide range of products, various investing channals and strong interaction. Meanwhile, the author studies international CFP and its certification system, which will benefit the development of Chinese CFP and its certification system.Part three: Developing Direction of Personal Finance Service of Chinese Commercial Banks. Foreign commercial banks has got mature and sound information system with their own brands. We can learn from them. Last but not least, the author focuses on countermeasures and puts forth 10 suggestions for developing personal finance service of Chinese commercial banks. Directed at current situstion and existing problems in personal finance service of domestic commercial banks, the paper points out that commercial banks should update business concept, set up correct financial outlook, carry out customer relationship management, speed up business innovation and personnel training, construct and develop software and hardware synchronically, do good technical research, improve incentive and restraint mechanisms, and win by high-quality service. These suggestions will help to promote and facilitate the development of personal finance service of Chinese commercial banks for the better.