Strategy Choice On Developing Private Banking For Civil Commercial Banks

Private banking(PB)is based on wealth management,providing high net worth customers with peak finance services.Private banking which has hundreds years history appeared in china only recent years.But it became hotspot with lots of foreign and civil commercial banks entering into this field.In Occident markets,private banking business contains bank,insurance,asset management,investment,trust,heritage arrangement, and art collections.And it brings profit to banks 10 times than common retailing banking business.For civil commercial banks,private banking has good foreground and will bring new growth of profit.This article exercises the theory of competitive strategy,gathers lots of information about the private banking,discusses the PB's operation,and studies PB's status and competitive strength,weakness,opportunity,threat for civil commercial banks,and put forward strategy of PB in five aspect,such as customer strategy,product strategy, service strategy,human resource strategy,and brand strategy.This article also indicate the keys of performing strategy:leading correct ideas,perfecting the organization, establishing independence support IT systems,utilizing the power of Finance Holding Group,and learning the advanced management of foreign private banks.Based on above strategies,the total strength of civil private banks will be increased.In a word,it's feasible that civil commercial banks develop private banking in china.And the profitable mode of private banking must change from dealing to consultation.The civil commercial banks must set up long-term relationship with customers of PB.However,civil commercial banks must improve their systems in designing product,risk,employee's salary,and internationalization.