An Analysis Of Relationship Between The Personal Financial Services And Development Strategy Of China's Commercial Banks

In recent years, the development of China's banking financial market is very rapid. According to the incomplete statistics of Southwestern University of Finance and Trust and Banking Institute, in 2008, China's 60 banking institutions issued a total of 5833 financial products, with financial resources reaching to the size of more than 3.7 trillion RMB. Its development speed and scale is so amazing. What's the driving force behind its development? What'the internal relationship between it and the strategic adjustment of China's commercial banks?Having found lots of literature, On the one hand, because the finance business development time of China's commercial banks is not long, the relevant research is very little, and on the other hand, research about strategic adjustment of China's commercial banks is numerous. But they didn't research the strategic adjustments commercial banks combined with the finance business. Therefore, author of this paper hopes that this article can reveal the relationship between its wealth management business and the strategic adjustment of China's commercial banks to explore the driving force behind the development of wealth management business. And farther on this basis the author provides some reasonable recommendations for China's commercial banks in financial management business development.China Merchants Bank is the research object in this paper. First of all, some domestic and foreign research about the relationship between banking financial business and the overall development strategy are briefly described. As time of banks conducting financial business not long, especially China's banking financial services development time is more short-lived, so this kind of research is rare. As the theory of foreshadowing of this paper, the author then briefly describes the main elements of strategic management theory and the development and evolution, the financial banking relevant basic theory and basic principles of financial operations. Because this is a paper analyzing banking financial business, so the development of domestic and international private banking wealth management business and its characteristics are briefly introduced, and the whole banking system of China's current financial management products, are briefly described also.The main part of the article includes the following sections.First, the basic profiles of China Merchants Ban is briefly introduced in three levels on the development strategy from the number of outlets, business structure, business innovation in recent years. From the annual report we can see China Merchants Bank has been working in recent years to expand its number of outlets and institutions. China Merchants Bank semi-annual report in 2009 showed that until June 2009 the number of its agencies has been expanded from 31 which in 2002 to 702. China Merchants Bank also showed a strong vitality in its business structure adjustment and business innovation.Secondly, based on a wide range of access to information, this paper launched a detailed description of the financial operations of the China Merchants Bank. From March 25,2004 when China Merchants Bank issued the first financial product to June 30,2009, China Merchants Bank has issued a total of 1477 models and eight kinds of series of financial products. In this paper, author takes two series of financial products for example and through statistical analysis revealed the profitability and capacity of banking wealth management business of China Merchants Bank.Based on the first two sections, the third section is SWOT analysis to China Merchants Bank's development strategy from external strengths, weaknesses, opportunities and threats. Competition with foreign banks, the trend of mixing, as well as the increase in risk factors at home and abroad as well as weakening trend of traditional deposit and loan business are the main development threats. Its advantages contain good asset quality, high market reputation, scientific internal governance mechanisms and relatively perfect atmosphere for innovation as well as high quality customer. Its shortcomings are mainly in that assets and liabilities are relatively small. The number of outlets is still limited and there is more room for improvement for product development.This article reveals the relationship between its wealth management business and development strategies in the fourth section, pointing that personal financial business is the concentrated expression of its strategic adjustment. Personal financial business strengthens the bank and customers. Personal financial business and other bank business are Mutual-developed. Personal Financial Services is the most effective branding method.Subsequently, based on the above study, this article puts forward the following suggestions. First of all, China Merchants Bank should improve their internal control mechanisms from upgrading the design and operation of business and scientific processes, improve risk-control, increase cultivation intensity for human resources, renovate service concept of employees. Secondly, to create a sound external marketing environment, banks can remold marketing idea, improve the financial business knowledge of marketing personnel, actively induce financial needs of customers, cultivate risk awareness of customer.