Research On Developing Strategies Of Personal Finance In Chinese Commercial Banks

Personal finance is an important means of business diversification, increasing profit, dispersing and reducing risk for commercial banks. Also, it's the focus of competition between domestic and foreign banks after China enter WTO. Nowadays, personal finance in domestic commercial banks relies mainly on serving type, together consultation and investment direction. Almost commercial banks can't offer the exact personal finance products that customers desire. This paper tried to provide a portfolio model for personal finance of commercial banks, which can meet with different risk-accepted customers'investing requirement and realize new development of personal finance.Based on summarizing personal finance of Chinese commercial banks, this paper firstly analyzed basic environment of how domestic banks develop personal finance at present, and expatiated on actuality of personal finance developing in the world, then took apart the problem existing in personal finance of domestic banks. This paper discovered that the key issue in short time was the creation of '`customer-oriented" products. However the "customer-oriented" products focus on customers' needs, even the needs are supported by investment instruments and designed reasonably according to precise theory. The profit and loss of the capital is realized through the investment tools, so how to use investment tools properly is the crucial task of personal finance planner. For this reason, this paper gave an analysis about customers'configuration and the profitability, risk, liquidity of daily investment tools in the capital market. Then the paper introduced the principles of the portfolio theory, provided a utility-reflected model of selecting investment tools for customers. After different parameters supposed, solving and the conclusion of the model can help planners offer customer-oriented financial combination products.This paper adopted two methods. First of all, this paper integrated theory with practice. Based on investment and behavior finance theories, it also integrated the data of 340 investigating questionnaires, so that it can grasp the new need of personal finance developing well and truly. Otherwise, this paper combined the methods of quality and quantity, based conclusion on the customers' needs,and provided the model and guidance about product designing for domestic personal finance planning in theory, which can supply reference to investors, banks and financial practitioners.