Research On The Wealth Management Of Private Banks In China

Private wealth management in foreign countries has been developing for hundreds of years; it has already been a popular topic in the financial market in recent years. With the rapid improvement of Chinese economy and people's financial awareness, the wealth management business has gradually developed in the financial market. Although the development in Chinese financial institutions is less than ten years, financial institutions, especially banks favor the management of personal financial assets for long time. High net wealth population has become the main source of profits among banks, and providing high-end, professional and personalized services will become the major goals for future development by many banks.At present, compared with foreign private banks, Chinese private wealth management is still in germination stage. Private wealth investment market and business model is not mature, and the relevant laws and regulations are inadequate as well. In addition, the characteristics of Chinese high net worth population and demand are different from foreign countries, so the domestic private wealth the management mode cannot copy the experience of other countries directly. In this case, private banks need to find a suitable path under the dual pressures of internal and external environment in order to provide professional wealth management for the high net worth population. Chinese private banks are facing many challenges, such as how to adapt to the rules of market economy, creative the wealth management business, reserve professionals, perfect the service model and improve the images of brand., After completing these challenges, Chinese private bank can capture favorable position in market competition.Firstly, this paper thoroughly studies the development of private banking in developed regions, makes comparative analysis of the development mode of UBS and Citibank, and summarizes the development characteristics of foreign private wealth management business and the future direction of development. Secondly, in the study of domestic market, this paper carries out comprehensive analysis about the environment of private banking wealth management in China from macroscopic and microscopic view; and based on the supply and demand in the wealth management market, this section also analyzes the characteristics and demand of high net wealth population and explains wealth management institutions and sales and service system. Then on the base of these, this paper discusses the main problems that private banking and wealth management are facing and the reasons of these existing problems in China. Aimed at above issues, the fifth part makes suggestions from six aspects, including service model, product platform, management model, customer segmentation, team building and brand management. This paper uses actual cases as main research method, which has high feasibility in practice. Private banking in China can utilize the recommendations and conclusions of this paper as reference to seek breakthrough of the strategy in wealth management.