Analysis And Maintenance Of The Development Strategy Of Private Banking Customer Groups

Private banking business is viewed as "the pearl of the crown",because of the low requriement of economic capital, high business value-added, huge brand influence and strong market potential, and the fact that it is one of the top business to show the comprehensive competitiveness of morden commercial banks. It is brand new in China, despite the fact that it has a long history of several hundred years in foreign countries. Chinese economy grows fast since reform and opening-up, therefore, people are getting wealthier and wealthier. Consequently, the desire to manage wealth for those rich people groes strongly, which suggests the fact that private banking business development is with great potential. In September2005, the Swiss International bank becomes the first foreign bank to start their private banking business in mainland China. In March2007, Bank of China set up the first domestic-invested private banking department. Afterwards, several banks, such as China Construction Bank, China Merchants Bank, China CITIC Bank,Industrial and Commercial Bank of China, Agricultural Bank of China, set up private banking department. In the foreseeable future, private banking business must be the focus of the high-end market competition for both domestic and foreign banks. Based on the estimation of’2012China Private Banking Report’published by McKinsey&Company,the annual compound growth rate of Chinese high-net-worth individuals in3years could be20%, which means that the high-net-worth individuals in China would be2million in2015.Customers are vital and the most important strategic resouces to private banking business. Therefore, lots of private bank seek the goals of setting up a consistent, stable and scientific customer-relationship management system, establishing an adequate customer-relationship management strategy, and providing private banking service with the heart of customers. The international first-class private banking has accumulated plentiful experience in maintaining customer relationship, while domestic private banking service is on the very first step and far less developed compared to international morden banks. This is true for Bank A, the last publicly listed state-owned bank, which is quite young in this area. It is very necessary to set up a sound customer-relationship management system, establish an adequate customer-relationship management strategy and insist on developing private banking service with the heart of customers, based on the fact that customer characteristics are fully researched and classifiedWith the foundation of basic research, this article focuses on the private banking customers’ characteristics, financial demand and how to maintain and develop with those customers of Bank A and Shandong Province. It points out how Bank A adjusts the private banking customer development strategy to effectively maintain their private banking customers. It suggests specific strategies in the area of corporate governance, employee construction, product service, cooperative marketing, which is meaningful and reflective for commercial banks in developing private banking business and promating private banking customer management level.