| Personal banking has been of greater importance since 1970s. Due to more fierce competition and rapid development of the capital market, banks suffered margin squeeze in wholesale banking. On the other hand, demand for financial services from personnel became robust with the fast growing of personal savings. Banks such as Citibank discovered the change early in 1970s and started to exploit the PFS (personal financial services) market. However, due to systematic and historical reasons, Chinese banks paid little attention to personal banking. They generated only a small percentage of total revenue from personal banking and business mode in the area was too simple. Chinese banks have great difference in personal banking, compared with foreign peers. Citibank, thanks to its early entrance and everlasting working effort in the area, has become the best consumer bank in the world. It is a perfect example for Chinese banks to learn. This thesis intents to get useful conclusions about how to achieve in PFS, through profound and detailed analysis of Citibank. The experience of Citibank's success in PFS is precious for Chinese banks. The thesis is divided into four chapters: Chapter 1 analyzed the background of PFS development, both theoretical and practical. Expected income theory, liability management theory and super money supply theory all provide support for the development of PFS business. In practice, the change of earning modes and service reform, together with the rapid increase of personal assets, promoted the PFS growth. Chapter 2 focused on the role and importance of PFS. PFS plays an important role in banking business, contributing majority of earnings. Besides, PFS shows advantages of stable profitability, diversified risk and relatively defensive to economic fluctuation. High profitability, low risk and great growth potential all determine PFS to be most important banking business nowadays. Chapter 3 made a profound and detailed research on the PFS development strategies of Citibank. As one of the best financial service groups worldwide, and the only global consumer bank, Citibank have made great efforts to achieve success in personal banking. This chapter includes four sectors to fully analyze the PFS of Citibank. Sector 1 briefly introduced the history of Citibank. Sector 2 described the PFS operation structure of Citibank, concluding by a structural chart of its PFS operation.Sector 3 stated in a large form the major phases of Citi's PFS development between 1920s and 1990s. Sector 4 analyzed Citi's successful strategies in PFS in great detail. PFS already accounts for around 60% of total business revenue and it kept 20% annual growth rate in recent years. This sector stated all Citi's strategies in six aspects: marketing, innovation, alliance, human resource, restructuring and risk management. Applying the three competitive strategy theory of Michael Porter, the author concluded that Citibank experienced development of "differentiated strategy – cost-oriented strategy – intermediary oriented". Chapter 4 explored the inspirations that Chinese banks could get from Citibank's success in PFS, combining with realities in China. Sector 1 presented the necessity of developing PFS in China. Sector 2 stated the substantial difference between Chinese banks and Citibank in various aspects. Sector 3 discussed possible solutions for Chinese banks to improve their PFS. PFS in foreign countries have become quite mature, causing pretty much research on this area. However, most research just simply introduced concrete measures without systematic conclusion. The author of this thesis collected a great deal of information from various sourcesand spent much time in analysis, making complete and strategic conclusions about Citibank's success, from a systematic perspective. Besides, the author combined both theory and practice of PFS together and used a great many data and examples to support her viewpoints. Further more, the author presented inspiration to Chinese banks from two perspectives, external syst... |
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