Discussion On The Development Of Personal Finance Business In Domestic Commercial Banks

Since2003, domestic commercial banks started offering personal investment products. Initially, the products were issued in USD and other foreign currencies. RMB products were issued in a later stage. As a high profit and rapid growth service, it got unprecedented development in a short period. From2006, personal investment service grew rapidly, covering both retail banking and private banking with currency in RMB, USD, EUR, AUD, GBP, HKD and other currencies. In recent years, the sales volume and size of personal investment service is of explosive growth. It has become one of the most competitive services of commercial banks.As a new financial service, studying the development of personal investment service can perfect and enrich financial service areas of China so as to get prepared for the creation of international financial centers of the country. It also helps to develop and enrich commercial bank’s product line so as to provide a new profit growth point and achieve a strategic transformation of commercial banks. The2011China Private Wealth Report jointly issued by China Merchants Bank and Bain shows that "In2010, there are around500,000high net worth individuals who holding investment assets more than CNY10million in China. They hold investment assets of about CNY30million per person with total investment assets of CNY15trillion. It is predicted that the number of these individuals will reach590,000in2011with total investment assets amount to CNY18trillion". The development and prosperity of personal investment service of commercial banks is more advantageous to individual financial consumers. It can satisfy the wealth management needs of more and more domestic wealthy individuals and provide value for their wealth.Based on the analysis to the present development situations as well as the existing problems of personal investment service of domestic commercial banks, this article proposes corresponding measures and solutions, aims to provide a theoretical reference for the further development of the personal investment service of domestic commercial banks The first chapter of this article mainly introduces the general situation of personal investment service of commercial banks as well as the domestic and foreign literature review. The second chapter introduces the development stages and current situations of personal wealth management business of both domestic and foreign commercial banks in detail. Based on the second chapter, the third chapter gives comparative analysis on the personal wealth management business of domestic and foreign commercial banks. The fourth chapter analyzes the problems and the root causes from four aspects of regulators, products, sales and personnel. The fifth chapter proposes corresponding measures and solutions to cope with the existing problems and the root causes.