A Research On The Development Of Private Bank Business Of The China Construction Bank

As the growing of economy and the increasing of personal wealth, the number of high net worth population in our country has flourished. Due to the increasing of disposable wealth, high net worth people pay attention on their property appreciation, they hope the bank or other financial institutions provide better financial plans to guide their investment.Therefore, it brings great opportunities and severe tests to our country’s private banks business. These problems, such as the limelight of network financial, the national policy level of interest rates reform and banking itself highly homogenized, are increasing the competition between commercial Banks, and decline profit gradually. But the private banking business, can meet the demand of high net worth population investment and can promote competition and profitability, I believe that it will get the key development in the banking industry in the future.In 2004, the private banking business come into the China market, which was regarded as a kind of intermediary business by the domestic commercial Banks. But its real practical development is known as "the first year of private bank" in 2007. In less than ten years,, the study of the private banking business, which given by the domestic related institutions, is mainly concentrated in two aspects: first of all, analysis on the customer relationship management (CRM), digging the potential customer groups, and improving customer loyalty;Second, enhance competitiveness of their products, by providing private banking clients products which are based on customer needs with good financial product design, then improve the bank financial derivatives trading volume and increase the bank profits. However,these two points are still simply recognize the private banks business as a high-end customer product sales of the finance department, which are not analyzed radically from the private banking system and development mode of private banks business. And they can not offer real solutions to the problems existing in the current domestic private banking business.This paper introduces the general situation of the development of the private banking business by analysis the situation both at home and abroad, briefly expounds the value and necessity of the development of private banking business, and points out the limitation development of the private banking business in China. By takeing China Construction Bank(CCB) as an example, this paper analysis the problems of its the private banking business,such as competitive disadvantage, development model,platform construction,and the lack of professional team. Than, this paper puts forward reasonable suggestions to solve those problems, and to improve the construction of private banking business of CCB.