The Study On Personal Financial Service In China's Commercial Banks

The management of personal finance is the process that the commercial bank helps its customer to realize his goal by utilizing his own financial resource. The commercial banks analyze the customer's financial data such as income,expenditure,assets,debt, insurance, cash flow ,and assets value, consider the customer's various kinds of financial goals synthetically, and carry on the test of customer's risk partiality and adjustment of investment combination in order to help the customer make individualized financing plan, recommend the financial product and provide finance management report."Personal financial services" is a new term emerging in our country's financial services in recent years. Since the 1970s, under the enormous influence of the financial innovation, the business of personal finance in global commercial banks has enjoyed rapid development.At present, the business of personal finance is one of the most important sources of profit in developed countries'commercial banks. Through the growth trend of developed banking, the business of personal finance has many advantages, such as large volume, low-risk, business scope, operating income stability and so on, which has playing an important role in the development of personal finance.In recent years, with the acceleration of China's financial opening, increased competition of commercial banks, the growth of national economy and the increase of personal wealth, the business of personal finance has been growing rapidly. As an emerging intermediate business with low-risk, low-cost and high-yield, the business of personal finance can not only increase the bank's intermediate business income and drive the expansion of the retail business, but also brings a lot of funds precipitation for commercial banks, including national and foreign currencies deposition. Therefore, the business of personal finance has gradually become one of very competitive and challenging areas. Due to the substantial increase of personal disposable income, the public want to seek safety and security in the availability of funds and receive professional recommendations on the investment decision-making in virtue of personal financial services. Meanwhile, the development trend of mixed operation of financial institution, impel the overall cooperation of financial institutions such as the bank, securities, insurance, etc., having offered good economic environment for launching personal financial services. Personal financial services become new profit growth point of commercial banks.Through introducing the development situation of personal financial services in our country, this paper analyzes its present situation and the existed problems, and proposes the corresponding countermeasures. The full text is divided into four parts, according to the following logic ideas to launch: "the development of personal financial services in China's banking sector– the comparative analysis of personal financial services domestic and foreign commercial banks– the existing problems of personal financial services in China's banking sector– the development strategies of personal financial services in China's banking sector". In view of the present situation of personal financial services in China's commercial banks, this paper compares the general situation of personal financial services in our country with that in the developed countries, states the existing problems in our country and identifies the constraints, at last, proposes measures to solve the problems, in order to discuss how to conduct personal financial services of China's commercial banks effectively.This paper first reviewed the domestic and foreign personal financial services theory summary. The development process of personal financial services manifests the thought of financial innovation. Financial innovation has become a powerful driving force of the personal financial services development, through the creation and introduction of new tools and new methods in the financial field, which impels the development of the personal financial services from junior to senior stage.Then on the profile of personal financial services, including the concept of commercial banks personal financial services, the present situation of personal financial services in China's banking as well as the necessity of developing personal financial services in our country's commercial banks. This part points out that it is inevitable choice for commercial banks to expand the services domain, enhance competitive strength, and optimize the structure of assets and proceeds by taking advantage of modern financial management knowledge, advanced technology of funds transfer and diversified personal financial services product to provide banking service for individual customers. Besides, it is also an important breakthrough to carry out comprehensive innovation and accelerate development of commercial banks.After the analysis of the characteristics of personal financial services in foreign commercial banks, then the comparative analysis of personal financial services between domestic and foreign commercial banks. This chapter concludes the main existing problems of the personal financial services in our country banking and analyzes the reasons aiming at the problems.Finally, this paper proposes several strategies for developing personal financial services in China's banking, including the diversification of financial services products, the differentiation of service strategy, the improvement of credit information system, the enhancement of financial personnel quality, the maturity of laws and regulations and so on.The purpose of this paper choosing personal financial services of China's commercial banks as the study object, it is mainly based on the following considerations: First, the current structure of financial markets has been dominated by banks, the commercial banks has distinct superiority and advantages in developing the personal financial services, Second, the development of personal financial services is concomitant with the enhancement of a country's economic strength. Under the condition of continuously enhancement of our country's economic potentiality, the study on personal financial services is of great significance. Finally, personal financial services is an emerging services in our country, thereby, the analysis on personal financial services will strengthen understanding and instruct the practice theoretically.This paper has the following theoretical and practical significance:First, through the proposed method and suggestion about how to develop the personal financial services, I have made certain thinking to China's banking innovation of financial tools and financial system. Second, the personal financial services is still in the initial stage, the research on personal financial services will help to the instruction of practical work and seizes this emerging market as soon as possible.Third, personal financial services are also the need for expanding domestic demand, stimulating consumption, nurturing consumer hotspots. At present, the savings deposits of residents have been growing concerns on over growth. The study on personal financial services helps to exert the intermediary function of financial institutions of changing the savings to the investment, realize the diversification of investment channels, and promote financial system resource optimization and efficiency of the social fund utilization.