The Research On The Development Model Of Private Banking In China Min-sheng Bank

Private banking in commercial banks focuses on wealth management,provides professional, differential, customized and private financial andnon-financial services to the high net wealth individuals. It covers a varietyrange of products in the financial industry, including trust, insurance,investment banking and mutual funds etc. With the rapid economic growth ofChina during the recent30years, the number of high net wealth Chineseincreased very fast and therefore, the private banking services began to set upin China. After four years of competition, private banking in China found thecharacteristics of the market and gradually formed a business model withChinese characteristics.China Minsheng Bank’s private banking founded in July2008, it was thefirst private banking established in division mode in China.China MinshengBank’s private banking has made some achievements during the development period, with good strategies in customer positioning, brand image andnon-financial services. However there are still some problems: externalenvironment is on the one hand, the separate operation system and regulatorysystem restricted its development; On the other hand, it needs furtherimprovements in its own business model, product development, andcollaboration with other departments.This essay analyzed the problems that foreign private banking,especially the European market, the U.S. market, and high-end market,encountered in the process of development and how the service mode wasdecided. European customers focus on heritage therefore European modebased on asset management; U.S. customers were newborn rich, so brokermode is the best choice, and the high-end market mostly were family-ownedenterprise, so the suitable service mode is the home office. Therefore, on thebasis of advanced experiences of foreign and local private banks, this essaystarts from the analysis of the high net wealth market and customer needs,provides the most suitable development mode for China Minsheng Bank: Acomprehension mode based on brokers mode with asset management mode,and the home office mode is its upgrade mode. Meanwhile, the essay provideadvices of a better private banking development strategy based on its owncharacteristics and advantages of China Minsheng Bank.