Business Developement Strategy Of M Bank's Private Banking Business

Private banking is a package of private and professional wealth management service the commercial bank provide to high net worth individuals. In the wake of the development of China's economy and the increase in the number of high net worth individuals as well as the changing financial concept of people, more and more commercial banks placed their new business into the private banking market, trying to gain new profit margin, ease pressure on traditional business and accomplish transformation and development. As one of the very first domestic banks which have business in private banking, M Bank has made some achievements in this area after seven years of development. However it still needs to further strengthen the competitiveness of its private banking business, and explore more market share to get prepared to the changing face of China's macroeconomic, the constantly improving capital markets, the better-established financial mechanisms and the growing competition. The purpose of this study is to formulate a suggest development strategy for M bank in line with its own features and characteristics in order to strengthen its ability to respond to the opportunities and threats, make full use of its opportunities and improve the shortcomings.In order to figure out a proper development strategy for M bank's private banking business, this paper covered the following point:Firstly, this paper analyzed the existing theories of private banking development strategy. Secondly, this paper performed an according analysis about the strategic environment of M Bank's private banking business. In this stage, SWOT analysis is used to identify and value M Bank's strategic strength, a SWOT matrix was obtained as a result. By identifying the focal points of business operations, some significant influence factors of strategic measures formulation were identified. Then, on the basis of the former analysis, the paper went on clarifying and quantifying them. Meanwhile, this paper applied the grey correlative analysis to extract the main factors in the business development strategy of M Bank's private banking business to make it more convincing when the suggest strategy is formulated. Finally, some critical strategic measures of M Bank's private banking business were formulated.After a professional and convincing analysis on the theories of private banking and corporate strategy and strategic environment of M Bank's private banking business, the SO strategy this paper suggests includes brand penetration, technology development and specialization. WO strategy covers product development, personnel training, professional integration of business and international development. ST strategy is about a powerful brand, market monitoring, customer cultivation and differentiation. WT strategy includes a powerful product, a strong talents pipeline, strong competitiveness, maintain customer base and business restructuring. Through the use of gray correlation analysis, we extracted the influence factors like the clients, marketing capabilities, wealth accumulation, brand strength, the cross-border asset allocating ability, human resources, products, technology, etc... Based on the foregoing analysis, we formulated some critical strategic measures of M Bank's private banking business...