HSBC China Private Banking Competency Strategy

The private banking originated from Europe with hundreds years of history. It aims toprovide high net values customers with services of wealth management and appreciation. Ithas high criteria, quality of service and privacy. The private banking business commenced inChina in2007. It is under fast developing phase. As the number of rich population and theneed of capital management grow, private banking has a broad market in China. While it isbecoming popular and growing fast in China, private banking business is also affected bylocal cultural and government law, and it is not the same as international service. Meanwhile,the private banking should grasp the opportunity of internet financing change in2013to growits business in China.This article starts with analyzing the PEST of private banking, and then moves to theindustry environment and main competitors’ characteristic. It finds the key factor of beingsuccessful in private banking is to build and maintain a good client relationship, and discoverand meet the customers need. Through using SWOT to analyze HSBC china private banking,it identifies that the weak areas are localized service and limited branches, while the strongareas are high-end reputation, rich oversea financing products and collaboration effectivenessas a general bank. On the basis of that, and followed the strategy of group private banking, itis suggested to position in entrepreneurs as main customers, take the differentiationcompetency strategy, reposition and filter the customers in short term, meet entrepreneur’sneed through internal collaboration, and expand the network and branch in long term.In the strategy implementation phase, it is suggested to enhance the staff understanding ofstrategy, strengthen China local marketing and promotion, keep current organization structure,implement the process and risk control, develop local people and construct digital technology,improve the finance production innovation to meet Chinese customers’ needs, and leverageinternal resource and collaboration advantage. There areas will ensure the HSBC Chinaprivate banking to achieve the strategy target.