The Analysis Of Development-Private Banking Business Strategy Of Bank Of China Shandong Branch

In recent years, with the sustained and rapid development of Chinese economy, residents’wealth increased sharply, and number of the rich has been raised to vertex level. Meanwhile, demand of the huge army of billionaires for wealth management, assets appreciation and property inheritance has never ceased its speed of getting stronger, which intensively elevates private banking, a service with superior level, myriads of styles and considerable profits to become an effective weapon to occupy market shares, enhance banking competitiveness. In the developed countries, private banking business has boomed for years and grown to be in maturity, and in the past of a few years, some international powerhouse banks have landed on Chinese market, and gradually penetrate themselves into the private banking market. Furthermore, they intend to seize the market leading position through the competitions with domestic counterparties. With the basis of considering the national conditions, China’s market atmosphere, financial development demand and regulatory environment, Bank of China Limited launched private banking business in2007, and such business were initiated in Shandong Branch from April,2009. Upon the start of the private banking business, Bank of China Limited Shandong Branch attached great importance to the diversified innovation of financial products with the guidelines of the promotion of domestic and international integration. With the premise that risk is controllable, the institution is oriented to increase the investment profits of HNW (high-net-worth) clients by the means of private, customized and considerate services. And ultimately, the competitive advantages could be strengthened and intensified within the provincial and national range. By adopting the successful experiences of other foreign private banking business, Shandong Branch has made significant progress after having implemented initial planning, brand building, customer development, asset enhancement and other effective means, and its market position has reigned over the intra-market. However, the development model and the specific ideas of foreign banks’ private banking services cannot be directly imitated by Bank of China in the current market environment. Accordingly, it is inevitable to undergo some problems and difficulties during the development period, which is required to seek further solution.To sum up, based on the successful experience of development of private banking business of some big international banks from developed countries, and with Bank of China Limited Shandong Branch’s private banking business as the research object, the thesis is dedicated to conduct in-depth analysis of the status quo and the existing problems and difficulties of the object with the core of serving clients and the idea of marketing services, concluding the strategic countermeasures which accommodate to the current financial market environment and the development of Shandong Branch’s private banking business. Firstly, this paper analyzes the basic overview, characteristic and content of the private banking business of Bank of China Limited, while deducing the businesses’ opportunities, challenges, advantages and disadvantages through the analysis of the external environment and internal resources; secondly, this paper summarize the strategic target, service mode and outlook of future development through the analysis of the status quo of Shandong Branch’s private banking business development; finally, this paper combines the service mode and marketing idea of private banking business, with the theoretical instruction of domestic and international development of private banking business and future development plan and existing problems of Shandong Branch’s private banking business, put forward the countermeasures to the bank’s business expansion and development.