Research On Innvation Of The Development Mode Of Private Banking In China Merchants Bank

China’s rapidly growing wealth market renders the private banking industry more competitiveand introduces fresh challenges, marking a new phase of development of the industry. Presently,most private banks have found their own development modes, which target at high-end wealthmanagement market and attract customer bases with products and services of diverse depths andwidths, attempting to partake of the gigantic cake of wealth. As the market matures, customers growmore financially aware, and their needs become increasingly diverse, the private banking industry isconfronted with multiplying problems. The research conducts a case study on the private bankingsector of China Merchants Bank (hereafter referred to as CBM), a bellwether of the industry, looksinto the status quo and insufficiencies of its development, and identifies innovations in itsdevelopment mode. It is hoped that the findings will cast a light on the development of the privatebanking businesses of China-owned banks.In this thesis, we firstly describe the concept of private bank, its targeted customers as well asits products and services, customer demand theory and innovation theory. Secondly we examine thestatus quo, characteristics and success factors of three representative private banks, i.e. UBS(UnitedBank of Switzerland), Citibank and HSBC (Hong Kong Shanghai Banking Corporation). Thirdly,focusing on its organization mode, service mode as well as profit model, we attempt a detailedanalysis of the mode, status quo and problems of the development of CBM’s private bankingbusiness. With reference to the background of China’s private banking industry and previousstudies on customer characteristics and demands of private banks, the innovation strategies ofCBM’s private banking business are given from international experience and ventures.