The Study On Financial Market Of The Low-and Middle-income Class In China’s Commercial Banks

An existing outstanding problem of the wealth management market in the commercial banks of China is that almost all the banks wealth management business are located in the high-end customers, focused on the development of high-end wealth management market. This is determined by the value of the high-end customers,’28Rules’pointed out that about80%of the income of the commercial banks from the20%high-end customers of banks. For this reason, banks compete to snatch the high-end customer base, introduce high quality, high-end integrated financial services, competes for market share. The high-end finance and high barriers are hard for the part of the low-and middle-income populations who are willing to finance to entry. We found that the commercial banks neglect the development of the low-and-middle income personal finance business. For this problem, we analyze the low-and-middle income personal finance from the following aspects.Although that the commercial banks pay more attentions to the high-level customers is reasonable. But the financial market of the low-and middle-income class has a great potential for development. The commercial banks have the necessary to operate the financial planning of low-and middle-income class.The first part is the research background and significance of the brief analysis, as well as thesis and research methods, and pointed out that the innovation of the paper and inadequacies.The second part is the personal finance theory and literature review; personal finance theory only describes the market segmentation theory and life-cycle theory, and the literature review is summarized from the theoretical and quantitative aspects of personal finance scholars study.The third part is the analysis of the situation and the reasons for our bank financing products. Bank financial products presented five characteristics:(1)the number and scale of bank financing products explosive growth;(2) Obvious trend of short-term bank financial products shall be divided into less than a1-3months, 3-6months, ranging from6months to1year;(3) bank financial products mainly target high-end customers, and the majority of financial products and services are design for high-end customers;(4)bank financial products innovation capability is weak, and wealth management product homogeneity is serious;(5) Lack of low-and middle-income families financial products, commercial banks ignored in the low-income personal finance. There are four reasons to these situations.(1) High-end financial profit is very impressive, and high-end wealth management markets have brought enormous benefits to commercial banks.(2)The existence of errors in low-and middle-income financial management concepts, so that the personal financial needs of low-and middle-income strata is not obvious.(3) The concerns of the regulatory authorities are in the follo wings:ultra-short duration of the restrictions on bank financial products, and the investors’ wealth management provisions of the access threshold.The fourth part of the thesis is the study of the personal financial needs of low-and middle-income class. Analysis shows mainly from two aspects:First is introduced the low-income groups’needs from the personal point of view; the second is from the perspective of commercial banks to analyze the supply of low-and middle-income class financial products. The first aspect contains the followings:financial needs of the lower-middle class life pressures, the increase in demand for personal financial with economic changes in the overall level, the demand of low-and middle-income class financial services and changes in the level and content with the change in low-and middle-income class financial management concepts.The fifth part is some recommendations for China’s commercial banks to development the low-and middle-income strata of Personal Financial Services.(1)Stimulate the low-and middle-income personal finance needs, and transform potential demands into real financial needs.(2) Provide different levels of financial services and make a reasonable market segments.(3) Increase the cultivation of professional financial staff.(4) Improve gradually the existing technical support conditions.(5) Lower the wealth management access threshold, which needs for mutual adjustment of regulatory authorities and commercial banks.