Research On Development Strategy Of Private Banking Of China Construction Bank

Instead of a bank that is owned and operated by a private party, the real definition of a private bank is one that targets individuals with high net worth and their families, offers them a series of services with a core value of financial management. Private banking first emerged in 16th century, Switzerland. During the process of globalization in the financial industry and the rapid development of economy, it as well grew stronger in Europe and North America through the years and gradually turned into a very important part in the modern financial system. As the second biggest economy in the world, wealth has been accumulated in Chinese households and individuals, percentage of wealthy population has also gotten higher and higher. There is no doubt that China has become one of the biggest markets for private banking industry. Many of the major private banking organizations are trying to get their hands on this huge market by opening their own branches in mainland China.The private banking service provided by CCB first started in 2008. With the advantages that are carried by CCB along the way, this new service has already achieved a great progress. However, there is still a big gap between CCB private bank and those that are internationally acclaimed from the aspects of the maturity of operation system, the variety of products, the expert team, or the awareness of the brand.In this paper, starting from the definition, I would like to analyze the successful stories of private banks around the world and take them as references, to understand both the advantages and disadvantages in the CCB operations, to take in account the need and demand from the domestic high-net-worth individuals and to make strategic suggestions that can help CCB develop a better private banking system.Restricted in many aspects such as domestic legal supervision and marketing improvement, some abroad mature and successful experience of private banks is not necessarily suitable for this special field in China. So the author thinks that it is more practical to research from the point of view on target groups--high net worth individuals and the development strategy of CCB private banks. This paper quotes a lot of data from authority wealth reports, based on the analysis of the demand theory and customer segmentation, combined with the author’s daily working experience, to explore outstanding demands of high net worth clients.Finally, based on the target clients, CCB private bank has to carry out product innovation, team innovation, channel innovation, brand innovation and service innovation from time to time, to gain a space for one person in the fierce competition of the private banking business.