Strategy Choice On Developing Personal Financial Business Of Chinese Commercial Bank

In resent years, personal business of commercial bank is a hot topic. With the increasing demand of resident's desire of managing monetary matters, the business contains the enormous opportunities and promising future. Now, banks offer so many services in the field of personal financial services to the society, and find the new way of making profit. It will benefit commercial banks for enhancing their competitiveness in 2006 to full opening of the financial industry situation.In the past few years people aware of personal financial business, but for the true meaning of it and operational elements are ill-informed. Beginning with the concept of personal financial business, this thesis more comprehensive and scientific expounded what is personal financial business of commercial banks, which in reality contains the contents and procedures, and personal financial business in the commercial banks which link. This is conducive to commercial banks for their own personal financial business with a precise positioning.Integration conditions, this thesis analyzed the current supply and demand sides of the personal financial services market. As far as the banks are concerned, the development of personal financial business of commercial banks is new profit growth, which will improve the competitiveness of commercial banks; for the perspective of individual residents, personal financial business results from diversity of financial assets and differences of demand. In addition, financial innovation and the challenges of being a member of WTO also require commercial banks to develop personal financial business.On the basis of Analysis of the current development of financial operations in the domestic and international, this article summarizes characteristic of personal financial business of China, and analyze the current problems and its constraints. How to develop personal business is the focus of this article. In view of the current problems, the article studies the strategy of target markets division, the establishment of an independent operational system, innovation of the service content, personal finance pricing and the training of financial planner.Analysis of Innovation of the service content is as follows: First, pay attention to living finance. In previous studies, it was generally contended that living finance is initial stage of personal finance, and investment finance is advanced stage. It is unscientific. They are two aspects of financial planning. There is no distinction of higher or lower. Furthermore, commercial banks lack of financial planning for life now. Second, increase investment products, especially increasing the financial guarantee products. It is also vigorously pursuing structural financial products, establishing the portfolio of existing products and increasing the commission investment products. Third, strengthen cooperation of bank and other financial institutions. Fourth, develop internet financial management field.In addition, personal financial pricing is the focus of this article. Three types of price------ financial year pricing, intermediate business pricing and financial guarantee products pricing are studied in this thesis. It proposes "customer contribution pricing" which is determined by weighing customers'contribution to the bank. In determining financial guarantee products pricing , marginal cost pricing of James·E·McNulty is suggested to take.The paper also discusses the macro financial environment and financial management experience of foreign countries, which will benefit personal financial business of our country. In conclusion, this article contends that the trend of personal financial business is private banking, and analyzes the relationship between personal finance business and private banking.