On Demand Affecting Factors For Urban Residents’ Personal Financial Management Business In China

In recent years, along with the rapid economic growth and the gradual implementation ofstructural reform for the housing, health care, pension and education in China, the urbanresidents’ personal income has grown continuously. The financial assets of households haveincreased gradually. Residents’ financial management concepts have changed rapidly with theconduct of personal financial management business in various financial institutions, more andmore urban residents are willing to accept the financial services of banks, residents’ financeand investment demand gradually increased, the potential market for commercial bankpersonal financial management business is huge. The personal financial management is still inan early stage of development, there are still some problems for the financial products andfinancial services. In the perspective of customer financial demand, the thesis discusses theproblems existing in the urban residents’ financial management business, analyzing demandinfluencing factors of financial management for urban residents’ by empirical methods. Andfinally, the targeted suggestions of personal financial management business for urbanresidents are proposed.The thesis is divided into six parts:Chapter One states the study background, purpose and significance, domestic andinternational research trends, research ideas and methodology, possible innovations, andfinally provides the literature review of personal financial management.Chapter Two introduces the basic theories, including definitions, classification, maincontent, theories and demanding influencing factors for financial management.Chapter Three presents the personal financial management business in developedcountries and regions from the perspective of demanding development and satisfactions, andthen puts forward some enlightenment to financial management business for commercialbanks in China.Chapter Four analyzes the financial demanding for urban residents and the existingproblems, including the financial management circumstances, needs majority, motivations,and finally analyzes the problems for commercial banks in China. Chapter Five conducts the empirical study on demand affecting factors for urbanresidents’ personal financial management. Using the data obtained through questionnaires,taking Chongqing as an example, the thesis analyzes the factors the affect personal financialdemand of urban residents, and reveals the various impact of the factors to residents’ financialmanagement demand.Chapter Six proposes some suggestions for commercial banks’ financial managementbusiness development on the basis of the empirical findings.The paper argues that there are significant differences in the importance of factors thoseaffecting residents’ financial needs. Firstly, the main influences to residents’ financial demandcome from the life-cycle stage and the environment that the residents in. Secondly, the serviceway, bank staff attitude, professional of bank staff, bank strength, and residents riskpreferences have significant impact. Thirdly, the deposit interest rate volatility, financial riskcharacteristics of the product, product return and initial investing amount have a slightinfluence to residents’ financial planning. Lastly, resident perceptions of risk for product, theterm of financial products, banks’ environment and equipments have no significant effect onpeople’s choice.According to the analysis, the thesis proposes the following suggestion to provide somereferences for the commercial banks: creating a favorable external environment; improvingcustomer relationship management system, promotion of market segmentation; changing theservice concept, strengthening the building of financial channels; strengthening personneltraining, strengthening brand building; focus on product development and innovation.