Research On The Transformation And Development Of Personal Banking Business In China 's Commercial Banks

Under the new normal, the downward pressure on China’s economy is increasing.With the development of interest rate liberalization and the internationalization of RMB,the profitability of traditional banking business models has been declined. So in the recent decade, the personal financial service has been a new profit growth point of China’s commercial banks. But as a tool of Competing for deposits at the beginning, there are many problems in the personal financial service, such as the rigid toinvestments income、channelization 、 homogenization. These problems have hindered the development of personal financial services. So it must be transformed and upgraded. Luckily, China’s commercial banks are trying transformation. Nevertheless, there are a lot of factors restricting the personal financial services’ transformation.This paper mainly expounds thedevelopment status and problems and the transformation attempt of China’s commercial banks’ personal financing services, and analyses constraint factors of personal financial services’ transformation by documentary analysis. Through research and analysis, it results that the personal financial services presents five major characteristics, such as the Open-Ended financial products increase rapidly;Short-term financial productsaccounted for most;the proportion of equity assets investment rises; the scale of Guaranteed financial productsdecreases and the yield declines.At the same time,there are five problemsin developing the personal financial service.They are therigid payment;channelized;Homogenization;Incomplete of risk isolation and talent shortage.To deal with these problems, China’s commercial banks have madesome attempts inpersonal financial services’ transformation. Like, Increases the circulation of Networthfinancial products;improve the proportion of investment in equity assets;set up division andsubsidiariesof assets.However,positioninginappropriate;imperfect oforganizations and risk prevention and control system Social credit system;restriction of policy;unformed of the concept ofOwn risk are the mainly constraints which hinderthe development of the personal financial services.Then, this paper studies Wells Fargoand Everbright Bank, Learning from their experience of development and transformation of personal financial services. Finally, put forwardsome suggestions on personal financial services’ transformation.