China's Private Banking Business Development

With the rapid development of domestic economy, the rich stratum in our country has shown an explosive growth in recent years, whose expansive financial needs has laid a solid foundation for the development of private banking in China. At present, the customers'demand has not yet been adequately met in domestic private wealth market, so it's imperial to develop the private banking industry in China. Meanwhile, the fierce competition within the industry also contributes to the rapid development of the industry, and policy regulation has also given strong support. In addition, changes in customer investment attitude due to the financial crisis also open a new opportunity for the development of domestic private banking.Customer is the core of private banking, and the development of private banking business must proceed from the customer and targeted and efficient product innovation on a thorough analysis of customer segmentation based on customer loyalty, in order to achieve the vigorous development of private banking business. The development of the private banking business also bears various risks, and it's necessary to manage and control all types of risks at the same time, especially operational risk.This paper first reviews and evaluates related studies, and then elaborates on the private banking products and services on the basis of definition and connotation of private banking and the differences between other personal financial services and it. Following that, it's outlined about domestic and international private banking product system. According to different standards customers in China were subdivided into different classes, and each class's risk preferences is analyzed. Then product innovation propositions based on customer segmentation for domestic commercial banks are presented. After the analysis of risk of private banking business, we put forward some measures of control and safeguards concerning the development of Chinese private banking business. Finally, the Bank of China Shenzhen Branch is taken as a case for deep analysis.