The Research On Private Banking Profit Model Of Chinese Venture Bank

Private banking is a term for banking, investment and other financial services provided by banks to private individuals disposing of sizeable assets. In recent years, with the development of economy in Asian and Pacific areas, the wealth scale is growing rapidly. Especially in China, there has been the customer with high net worth. They are no longer satisfied with the general personal financial services. Therefore the commercial banks in China are beginning to develop private banking which has been one of the most significant ways to improve non-interest income and intermediate business.There have been several researches on private banking nowadays, but no paper on its profit model under the specialized operation pattern in Chinese banking industries. This paper focuses on sample research. The major method of this paper is to use the successful experiences of private banking in Europe and the United States as reference, to combine them with China's current practice in private banking, and then to explore a proper way of development to apply to China's circumstances. The introduction of international private banking services will take UBS in Switzerland and Citibank in the U.S. as examples. The major examples of domestic private banking will be Bank of China and China Merchants Bank as they represent two types of banks.The highlight of this paper is to use example analysis to probe into the operation pattern of private banking in Bank of China. Up to now, researches on the profit model of private banking are inadequate in China, therefore the author of this paper has created a survey upon the profit model of private banking. The survey has been conducted to study specific clients so as to analyze their acceptance of the charging mode of private banking. The results will benefit the development of profit model in China's private banking.