Construction Bank Private Bank Business Development Strategy Research

In recent years, the fast development of Chinese economy has become the focus ofthe whole world. Under such economic background, the population of wealthy people isexpanding and China has become a country with the fastest growing wealthy people.Aiming at meeting with the high demand and growing requirements of private bankingbusiness from the wealthy people, Bank of China fastened its step to develop the privatebanking business and China Construction Bank stood out among all the banks. Sincebeginning to operate the private banking business in2007, China Construction Banktook a series of measures to improve its operation system, to disentangle the interactionrelation, by which the foundation of the business has been consolidated, the capabilityof operation and management has been improved a lot. Therefore, China ConstructionBank increased its awareness of the strategic position of the private banking businessand developed to occupy the market of this business at a high speed. However, what isthe best way to develop this business? What is the properest model of the developmentof private banking business which can be consistent with the Chinese national condition,the policy system and the regulatory environment? The answers are worthy of bankpractitioners’ study and exploration. The China’s banking industry should change itsoperating model, continuously improve its core competence, and establish a model ofprivate banking business which can meet with the requirement of international bankdevelopment and display its own characteristic. Only by focusing on the clients andproviding high level clients with professional, exclusive, and individualized accruedservice, will China’s banking industry decrease or even avoid the loss of clients and getthe final victory in the development of private banking business.This paper, taking China Construction Bank’s case as an example to do a comprehensive analysis, focused on the idea of consolidating the private bankingbusiness, and tried to look for a way to develop it. There are five parts in this paper.Firstly, from the introduction of the study background, the purpose of the study, thetechnological route and method of study, the paper proposed to develop the privatebanking business. On the basis of the former study, the paper analyzed the developingcondition and revelation of the private banking business at home and abroad, and takethe example of China Construction Bank’s private banking business to explain thebarrier to constrain the development. Finally, the paper proposed to develop the privatebanking business in China Construction Bank.