The Research On Competition Strategy For Private Banking Business Of Bank Of Communications S Branch

Internet finance has changed financial structure. The first is cross-border development. For example, channel operators can be involved in the transfer, payment, electronic business platform with the margin system, establish Alipay, open up the financial services and social networks can carry out to pay even financial services, manufacturing enterprises can network industrial chain, even traditional banking business, such as rental and staging. Secondly, internet finance formed a win-win cooperation model. The internet has integrated the financial network and logistics network and commerce network, so the role of financial intermediaries is no longer important. At the same time, the Internet financial network has spawned a large number of financial companies, which has created a great impact on traditional banking. Private banking business, as the top-level architecture of personal finance business, how to grasp the opportunity in the tide of Internet banking is particularly important to play.The private banking business of Bank of Communications (BOC) began to promote since 2008, which belongs to the high-end of wealth management business, also provides financial services for high net worth individuals based on "Ward wealth". In China, private banking business starts late, different from the world’s three largest private banking systems, which covers the European’s wealth inheritance and North American’s value-added investment and Asia Pacific region’s wealth management. Take BOC as example, private banking business faces many bottlenecks, such as market products homogenization serious, lack of professional personnel, inspection and operation mode is not perfect. Overall, if the domestic private banking business wants to develop rapidly, it needs to sort out the existing problems, analysis of the characteristics and needs of wealth management in China market and high net worth individuals, innovative operation mode and product system, and realize the need of growth and inheritance demand of high net wealth security, thus creating new profit growth point of BOC.The advantages of private banking business of BOC mainly include:private banking division can support business effectively; private banking 1+1+ service model, multi level maintenance customers; state-owned bank qualification with customer high recognition; a huge customer base to enhance the source of a customer; strategic headquarters personnel training to realize talent echelon construction; management organization with molding, operation mechanism and performance management mechanism. The disadvantages include:assessment is not in the assessment of large retail stripping; products focus on the traditional product resources, lack of innovation; high-end talent scarcity, affect the level of service; state-owned banking system strictly, lack of alternative business. The opportunities faced by the private banking business of BOC are mainly:products homogenization serious, competitive products have market appeal; private banking business is in the initial stage of development, other banks are in the exploratory stage; economic development and high net worth individuals need professional wealth management service; brand advantage, BOC is early private banking business pilot institutions; the subsidiaries and overseas architecture provides comprehensive, international service. Major challenges:joint-stock banks and foreign banks involved in the private banking business; the outflow of assets of high net worth individuals, global demand allocation; economic slowdown, hindered the development of the real economy, wealth growth is slowing; private banking clients of wealth management put forward higher requirements, market interest rates and other financial reform on the impact of the traditional banking.On the basis of the above analysis, we can draw the conclusion:in the background of the pattern of the Internet, in view of the private banking business of BOC shall implement the competitive strategy of differentiation and sum up the value chain in the field of private banking business, including customer relationship establishment, customer information collection, customer asset allocation, daily service following, customer testimonials from customers. According to the value chain of the private banking, propose optimization strategy for private banking business of BOC. The overall competitive strategy includes:combine resources and innovate products system; optimize value-added services and reflect professional value; cultivate professional team and improve service ability; meet the market demand and expand marketing channels; change examination oriented and clear contribution standard; extend individual to family and service cross enterprise.After determined the competitive strategy of private banking business of BOC, we need to through many measures to promote, including strengthen brand culture; improve management system; foster human resource; optimal incentive pricing; optimize and integrate resources; internet marketing in information age; cooperate with overseas institutions etc..This paper not only provides theoretical support for competitive strategy of private banking of BOC, enhances the core competitiveness through a series of measures; won a seat in the intense private banking market competition to deal with the financial impact of the Internet, but also provides the guidance for development of domestic private banking business because of the great influence and pioneer in the banking system of BOC.