Model Development Of China's Private Banking

Thanks for china's social wealth increase and rapid economic expanse, private banking are onits way into china in spite of its hundred years' history in which developed countries. However, inmainland china, private banking business is so inexperienced that cannot fulfill vast market demand,which means, how to promote private banking development is an important task that domesticbanks must face. Private banking provides vary financial service for wealthy families or persons tocover their individual needs. In this case, professional wealth management uses one-one businessmodel and presents so extensive to takes care of customers for their need of trust,assetmanagement,tax,investment,auction,arts collection,bequest arrangement and so on. Businesscompetency is professional, quality is friendly and service package is individualized service.This paper first introduces the opinions and views of domestic scholars to develop privatebanking and describe the experience both at home and abroad to carry out private banks. In the firstpart of the brief history of the development of the private banking process, the broad notion of aclear distinction between the difference between personal finance and retail banking.In chapter2, itanalyzes the current situation for the development of private banking business in China. And itfigures out the reason for the difficulties of continuing effective service for advanced in currentprivate banking in China, is because immature system for production innovation and the singlenessof financing management. In chapter3, by using "SWOT" method, we analyze the advantage ofdeveloping private banking by Bank of China, and figuring out the customer resources, advantageof time, resources locally, financial capital and internationally for Bank of China developing privatebanking. The disadvantage of inflexible and bulkiness system, service level, distributed operation,turnover of talents, and the difficulties which faced difficulties to judging validity of the properties,with no law protection for private properties, strict control of foreign currency, incompleteaccountant system. Meanwhile, it raises the challenge and opportunity for Bank of China duringhigh development of retail trade and innovation of tax system. The last chapter of this paper givesout the detail suggestions to Bank of China for either enforcing the construction of talents, service,product, and brand development or improving external financial environment. It also brings forwarda series of detail methods and solutions for how to upgrade relationship with customers, developand sell individualize products in order to smoothly developing private banking of China.The research shows that it's necessary for China's banking industry to construct financialconsumption ideas and correct financial service, to absorb and bring up talents, create its financialproducts and services, to strengthen the cooperation with the foreign-funded banks, to establishhigh-efficient information management system, so as to seize this good historical opportunity. Inaddition, developing private banking needs the support from the public and the government.