Market Positioning For The Future Development Of China’s Private Banking

Private banking business contains the financial products and services, which is offered by the bank. It specifically located in the high net worth crowd who have more than $ 1 million at least. Private banking is different from the traditional “retail banking”,which combines of trust, investment, tax, consulting, and other financial services, for it’s particularity customized. Private banking clients could buy stocks and bonds which would not provided to the general customers, and they also have the opportunity to purchase IPO. Private banking will also provide the personalized services such as architectural design, real estate investment, estate planning, playing golf, SOS rescue services, gemology and buying the high-yield financial products. High barriers, personalized service, professional, comprehensive, brand effect and high profits are the Features of the private banking business. Private banking business is quite mature in foreign countries after several years of development, and it is also an important plate in many famous international commercial banks.In recent years, China’s economic develops so rapidly that China has become the second largest economy in the world, accounting for more than 10% of the global economy. The number of the high net worth crowd increase rapidly. The growth rate of the high net worth crowd is one of the fastest countries in the world. In Asia-Pacific region, Japan has the largest number of wealthy, and China followed by. The high net worth crowd more concern about the "wealth protection" and "wealth inheritance" after the rapid growth of wealth, they pursue the diversified and global asset allocation. The role of private banks is more and more important in satisfying the financial needs of the high net worth crowd. The cooperation between the private banks and the high net worth crowd is deeper than ever before, and also for the trust.In 2007, China established the first private banking center. However, China’s private banking business is still in its infancy. It facing many problems such as feting the system, innovating the production,lacking the top talent,upgrading the regulation and the market positioning. At present, the private banking business is very important for the developing of the commercial banks.In theory, the related research about our private banking business focus on development patterns or future trends for most.The analysis about market positioning is little. Only when we analyze problems of market positioning and indicate the future direction of private banking market position, the high net worth clients’ high standard financial needs could be satisfied.This article will analysis present situation and the problems of the private banking’s market positioning, and focuses on the problems of the market positioning,such as lacking of clear strategic positioning, product variety, diversification, top talent. And this article also design the future development of the private banking’s market positioning, propose the new measures to ensure that the concrete practice of market positioning can be achieved, and enrich the theoretical study on the future development of Chinese private banking’s market positioning.