Study On Personal Financial Planning Bussiness Of Commercial Banks Of China

With the advancement of the process of China's accession to WTO, according to the promise in the December 11,2006, financial services in China will be gradually open to foreign banks, competition of personal finance planning business has entered a new era. Survey shows that up to 2008,the total savings deposits of Chinese residents have exceeded 20 trillion and the number of accounts in Shanghai and Shenzhen stock market amounted to 150 million, which lead to a strong demand for personal financial planning services.After several decades of development, Personal Financial planning Services in foreign countries has formed a relatively mature system, for its advantages of high-yield, low risk and wide spread, it has become an significant part of the banking business in development countries rapidly. Statistics shows that over the past few years, the revenue of personal financial planning services in some development countries took up more than 30%.However, to domestic commercial banks, personal financial planning business is still a new business, there are too much to handle. On one hand, foreign banks' entering into the market squeeze the market share, but it also brings advanced concepts and technologies.Now what we need to do is learn from them, all in all, it is necessary that we conduct more research on theory of personal financial planning.This paper is made up of 6 chapters.Chapter 1 is the introduction and literature review. Chapter2 is about the theoretical foundation and affecting factors of personal financial planning. Chapter3 is the market analysis based on consumer behavior. Chapter 4 is the supply analysis based on personal financial services and products of commercial banks.Chapter5 gives the suggestions.Chapter6 is the summary, which indicates though there is a strong demand for financial planning, there is a shortage of the supply because of a lack of product innovation, backward operations and management and low human resource. This paper takes emphasis on market perspective, based on the conclusion of demand create supply" by Keynes,it starts with the real and potential demand in personal financial planning market, then raise the question and gives the suggestions.In term of research methods, most of the early literature mainly focused on qualitative analysis and theoretical analysis, but this paper employ the classified analysis and construct a factoring model, combining normative analysis with empirical analysis.Besides, it uses behavioral finance theory to make it closer to the actual situation of China's market.