China's Commercial Banks, Personal Finance Business Innovation Research

In recent years, financial planning (FP) develops at a great speed in China, for which the domestic demand is increasing rapidly. It has been paid great attention by financial institutions such as bank, insurance, security, trust and funds. Innovations of FP products and services as well as their coverage increase day by day. A lot of training associated with FP springs up, and all domestic banks enter the market.State council issued the Foreign Banks Control Rules on Nov. 16,2006. According to its promise, Renminbi business will be open to foreign banks all-around from Dec. 11,2006 and foreign banks will be permitted to lay out in a big scale in domestic market. The banking of china will step into a new war period because of competition between domestic and foreign banks. All sorts of evidences indicate that foreign banks are speeding up the lay-out of business and net in China and Renminbi retail business will become the biggest target of domestic and foreign banks.At present, various commercial banks take the FP business as the means of attracting the VIP customers, which makes the competition more and more drastic. But today's FP services cannot yet provide effective value-added services for customers under the restrictions of policies, law, technology and human resources. It becomes important for commercial banks to change the competition of low-level homogeneous services to that of financial innovation abilities.The paper analyses the present status of FP in China, compares with those in developed countries, and clarifies the problems existing in commercial banks' FP business in China. The paper pays more attention to the FP innovation framework and factors that influence the innovation of domestic commercial banks' FP businesses. Taking the ICBC Jining branch as an example, the paper identifies the innovation mechanisms of FP businesses from policy supporting, management idea, business composition, organization management and channel construction. Finally, the paper brings forward the countermeasure to the FP business innovation and discusses its prospects.