The Research On Chinese Private Banks’ Services And Products And Suggestions On Their Developing Strategies

Private bank business originated in Switzerland, and it has beendeveloping in Europe and United States for hundreds of years. Since itslanding in China, private bank has already grown eight years now. With thedeveloping of its business range, it is known to public as a high end,customized financial service, including various wealth management plans,specially serve for high net worth individuals. Its services range from assetsmanagement, trust plan, wealth inheritance and non-financial high endservice, such as arts collection and appreciation, social activity, VIP medicalservice. As a whole, it aims at maintaining and increasing assets, reasonabletax reduction, family planning, business continuity and children’s education.In the first half of the thesis, I elaborated the services and productsprovided by international private banks, Chinese private banking services andnon-bank wealth management institutions, so as to clarify, for non-financialpeople, the characteristics or service ranges of various personal wealthmanagement organizations. Then through a thoroughly demand and supplyanalysis in the high end financial market, I figured out the conflicts betweendemand and supply. The analysis includes service and product survey amongChinese private banking, and SWOT analysis among Chinese private banking,foreign private banks in China and non-bank wealth management institutions.And furthermore, suggestions were given on the developing strategies forChinese private banking service for current stage, such as high end clients’segmentation; developing family long term wealth planning business;actively expand overseas financial service and products and so on. In the second half of the thesis, analysis and prediction were made onmid-term and long term financial environment and the impacts that Chineseprivate banking business will have. Mid-term prediction includes interestrate liberalization and RMB internationalization process; long term predictionis on the mix management of Chinese financial market. In the end, furthersuggestions were given on the developing strategies for Chinese privatebanking in mid and long term stages, such as providing differentiated depositand loan products, fix-income substitute products; accelerating theestablishment of overseas branches; setting up trust plan to help rich familyinherit wealth smoothly and avoid tax; improving cross functionalcooperation and internal resource integration and so on.