Research On Competition Strategy Of Family Trust Of A Bank

With the rapid development of our national economy, private wealth accumulates increasingly. As a result, more and more HNWIs require financial institutions to provide professional wealth management services. The family trust has become an important international wealth management tool, but it is still in the early stage in domestic market. By the end of 2020, the number of Chinese HNW households (those with investable asset of more than RMB 6 million) will reach 3.5 million, and the private wealth will reach a total of 100 trillion. As the market is getting more sophisticated, developing the family trust is beneficial to promoting strategic transformation of commercial banks’business model. The family trust is therefore a vital means for banks to meet the HNWIs’needs of wealth transfers.This research reviews the theories of competitive strategy and family trust, analyses the macro and industry environment with PEST analysis and the five-force model, and make EFE matrix established. This research also analyses the resource and ability of Bank A of family trust service, states the present situation and human resources, and make IFE matrix established.On this basis, the use of SWOT method to analyze the external opportunities and threats, internal strengths and weaknesses of A bank to carry out family trust business. Through the feasibility analysis of the implementation of the three generic competitive strategies in the A bank family trust business level, the comparison shows the applicability of the three strategies, and ultimately determine the competitive strategy. A bank can take advantage of the resources available, focusing on the enterprise customer, immigrant clients, investment banking customers three segment customer groups, through the establishment of platform type differentiated business model, in the group formed a complete business chain, realize specialized division of labor and cooperation; through differentiated service marketing, customer demand for segmentation and program provides; through product innovation and differentiation, continue to extend the family trust.The choice of bank a family trust business competitive strategy and implementation in this paper put forward opinions and suggestions to the target of the business and promoting measures has certain theory significance, to seize the business opportunities for development to provide new ideas. Given the bank a is compared with a representative of the state-owned commercial banks and solid foundation of the family trust business, started earlier, taking bank a as the object of study can provide certain reference for the development of state-owned banks family trust.