The Strategic Direction Of Mainland China’s Private Banking

After seven years of development, private banking in mainland Chinadeveloped significantly in some indicators, but it is still at the early stage, and thereexists a great gap in development philosophy, service ability and some other aspectscompared with the western counterparts. Taiwan, Hong Kong and the mainland Chinaare very similar and have a high degree of integration in culture, economy andgeography, so the success of private banking in Hong Kong and Taiwan can be a goodreference for the mainland. As the financial reform deepens during the "TwelfthFive-Year" period, the private banking business in mainland China is faced with itsstrategic opportunities, so how to develop is an important proposition.The main purpose of this research is to find feasible direction and steps for theprivate banking development in mainland China, so this paper integrates theory withpractice to ensure that the result is applicable. On theoretical aspect, this paperexplores the economic foundation to support the presence and core competitiveness ofprivate banking, and obtains a conclusion that financial reform will have a significantimpact on the core competitiveness of the private banking. On practical aspect, thispaper first compares the customer attributes, economic environment, financial marketsand other factors of Hong Kong, Taiwan and some comparable areas in mainland, andthen analyzes the features of successful experience of Hong Kong and Taiwan toprovide mainland China a reference example.This paper suggests that the American Agent Mode is a suitable developmentdirection for the private banking in mainland China in the future, and the financialinstitutions should be optimized in human resources, channels, innovation and so on,in order to gradually improve the development level in the path of"transaction-driven","product-driven" and "service-driven".The main innovations of this paper are:1. Using the integrating theory withpractice research method to make the results more practical;2. Proposing the development direction and steps of private banking rather than just analyzing aspecific business field.