Construction Of PWMP Rating Model For Personal Wealth Management Plan

As the financial assets of Chinese population continue to accumulate,the wealth management industry has entered a phase of rapid growth and advancement.Although well positioned in a blue ocean industry,Chinese personal wealth management business is still in a pre-mature phase,where the main financial service providers are simply engaging a product-oriented mind set.Considering the popularity of the client-oriented model engaged in the well-developed regions,a major transition is to be expected in the Chinese personal wealth management industry.Two main obstacles are identified in this process,one being the lack of professionalism of the financial service provider,who are currently suffering from little availability of the guidance for the transitions and are thus only providing basic portfolios to the market.The second challenge is found from investor perspective.They will be facing enormous difficulties understanding the sophisticated portfolios when the market grows more mature.To tackle these two issues,a rating model for personal wealth management plan(PWMP rating model)is proposed in this article.The different components and dimensions of this PWMP model are presented and explained,the client segmentations and their applicable weightings of the components are discussed in details and the full layout and construction of this model are ultimately demonstrated.Apart from above academic discussions,this article also aims to serve the market players,as it sets forth standardization process for the upcoming transitional period and proposes an indicative solution.Once proved and acknowledged,this PWMP rating model can be further adapted and advanced to the state-of-the-art technology and promoted to a much broader scale.