Private Banking Information System Research

After China’s accession to the WTO organization, our economy and banks are subject to acertain impact. The first problem is business scope. In western countries, banks aredeveloping into universal bank. They can rely on this advantage or its subsidiary business tocompete for customers. On the contrary, the law provides the banking, securities, trust,insurance must be separated in our country. These rules not only constraint the itsdevelopment, but also hinders to accumulate experience in universal Banks. The secondproblem is independent management. Compared with domestic Banks, foreign Banks has theadvantage of independent operation. For example, domestic Banks in the lending and depositrates, the extraction of bad debt reserve quota, and debts cancel after verification, etc havemany restrictions. The last problem is financial instruments and financial innovation. On theone hand, domestic commercial Banks lack of awareness about financial innovationimportance, and its motivation is not clear. On the other hand, they lack the motivation todevelop innovative products, leading to serious product homogeneity phenomenon. The thirdaspect is the lack of high quality talents with compound knowledge to develop innovativeproducts. The fourth aspect is the financial innovation of information technology support isweak.In recent years, private banking business is rapid develop in financial market of China.Set up private Banks has the following benefits for commercial Banks. Firstly, promote thecommercial bank’s brand construction and improve visibility. Secondly, promote customerlayered management. The use of personalized services and products to attract customers canreduce the turnover rate. Thirdly, the private banking business has the characteristics of lowcapital occupancy rate, high profit margins, which can greatly improve the level ofcommercial bank intermediary business revenue. Fourthly, expand the financial innovationmeans, and improve the innovation ability. Fifthly, promote customer manager, investmentconsultant team construction, and improve the commercial bank personnel quality.However, business development depends on the base support system. Private BankingInformation System(Hereinafter referred to as PBIS) is an important part of base supportsystem. It’s great or not is directly related to the rise and fall of private banking management.The research analysis and practice show, customer relationship management, comprehensive view, performance appraisal, performance statistical analysis, risk management, open productplatform, etc, is an essential part of private banking institutions management support module.With the development of high net worth population, their depth and breadth of financialservices are always changing. And their personalized, diversified portfolio needs is more andmore strong. All of this, make the marketing mode of private Banks change from productdriven into customer demand driven. Therefore, private banking information system are alsoconstantly improve, to meet the needs of business development.This paper based on the current situation of private bank information system, expoundsthe important function modules of the system, and made analysis for its future developmenttrend. Not only expect to guide the financial institutions which just set up private bankingbusiness, but also pointed out the direction of the future system construction. In the process ofthesis writing, the author collect a lot of important information by reading a lot of domesticand foreign document and doing research in domestic private bank which provides powerfulsupport for the article’s argument. The development history is fairly short in while it have acertain time in foreign countries, besides, many foreign good system and theory can not fullyapply in domestic. Therefore, this article both draw lessons from foreign advanced theory, andcombined with domestic actual situation. I believe that it will have certain referencesignificance for the people with lofty ideals and those financial institutions which in theprivate banking industry and has not yet set up private banking. This is also one of theoriginal intention of writing.