Analysis On The Development And Strategy Of Private Banking Business

Private banking business has been developed maturely in European and American developed countries,however,it is still an emerging service in China which was officially started among a few Chinese commercial Banks in 2007.With the development of China's reform and opening up,the rapid economic development drives an extreme rise in high-net-worth individuals.People of this class began to pay more attention on wealth preservation,appreciation and even inheritance with the high demand of wealth management.Commercial banks along with various financial institutions,started their wealth management business quite early with large scale in order to fulfill these customer requests.Nonetheless,the common wealth management service has been difficult to satisfy the needs of high-net-worth clients with large investable assets and complex needs.Therefore,the private banking business,which specifically focus on wealth security,growth,and inheritance among high-net-worthindividuals,began to rise in response to the proper time and conditions.However,the short development time,limited products and services,immature management and operation,and weak compliance and risk management lead to a number of illegal cases and large capital losses.As a consequence,the incipient private banking business exposed numerous problems,such as the lack of supervision and industry self-discipline,the weak internal administration of professional institutions,the insufficient professional ability of practitioner,etc.Besides,high-net-worth individuals are mostly entrepreneurs with great wealth,and build up their fortune from scratch.However,a quite number of these individuals do not have a correct view of wealth and financial management,which would lead to a large wealth volatility and great loss of private and social wealth.That not only reflects the loss of family and personal wealth,but also the loss.From this point of view,private banking business could promote capital accumulation and stable growth in economy of the whole society,and moreover promote economic development.In conclusion,it is quite valuable and significant to analyze the domestic private banking business represented by mainstream commercial banks.This essay analyzes the private banking business in China Merchants as a representative in the field of domestic commercial private banking business from four-fold vantage point including products and services,human resources,operation management,compliance and risk management.After a series of problem analysis,this essay proposes practical solutions and clarifies specific development strategies and measures.This essay is divided into seven sections.Introduction,as the first chapter,makes a general introduction about the research background,the main problems and significance of the research,the research framework and methods.The second section,literature review,summarizes the development of private banking business within and without the borders,and collate relevant discussion of private banking in China and the regulatory policies from the banking regulatory commission.The third chapter describes the development history,current situation,business model and main characteristics of domestic private banking business.Based on the third section,the next one specifically focuses on the private banking business in China Merchants Bank,including its development history and current situation,business model and main characteristics.The pressure and challenge of the development of private banking business in China Merchants bank will be claimed in the fifth chapter in view of four problems:products and services,human resources,operation management,compliance and risk management in private banking business.On account of the problems proposed in the third section,the sixth chapter analyses the development strategy and solutions and puts forward the pertinent measures and methods of private banking business according to the overall situation of the private banking business of domestic commercial banks.The last chapter is the conclusion and enlightenment.The last section is a summary and revelation of the full essay.Under the current domestic conditions,domestic private banking business is still at the early stage.This section points out some problems that should be paid more attention in order to achieve a healthy sustainable development of domestic private banking business.This essay collects relevant information of private banking business of domestic commercial banks and China merchants Bank,using strategic analysis and case study research method to study the problems and challenges faced by China merchants Bank private banking business,and to discuss its future development strategy.The research shows that after ten years efforts,the private banking business in China merchants Bank still faces various problems and challenges such as product and service,human resource management,operation management system,compliance management and risk management.It is suggested that domestic private banks need to provide more diversified and personalized products and services in the future,pay more attention to enhancing customer experience,and combine business with the Internet more effectively.Only by constantly upgrading the level and efficiency of private banking services,and focusing on compliance and risk management can the individualized and integrated demand of high-net-worth customers be satisfied.