| As a kind of industry to provide integrated financial services as well as all-around non-financial services for the high net worth individuals, private banking, which originates form Switzerland, has become the core business and primary source of profits.Along with the presence of "Chinese Dream" that focuses on power and prosperity, our country has gradually entered the well-developed era. After 30 years of sustained rapid growth, China has become the world’s second-largest economy with over RMB 20,000 per capita disposable income. At the same time, the private wealth is also accumulated. In 2015, China’s private wealth reached RMB 110 trillion; the number of high net worth families reached 2.01 million who possessed about 41% of the total private wealth; the investable assets of the high net worth individuals reached RMB 44 trillion.In 2007, the Bank of China firstly launched its private banking industry, which represented our country’s commercial bank formally entered the territory of private banking. With rapid economic growth, many major banks seize the right moment to launch their own private banking business. By doing this, the private banking, as a new and foreign business, has successfully taken its root in China. At present, the penetration of private banking in China is only about 8%. From the high net worth individuals’point of view, private banking in China has not been able to paly its real role.Located in the crossroads of European continent, Luxembourg is one of the world’s highest per capita income countries as well as a famous international finance center. Financial industry as the first pillar industry of Luxembourg, accounts for about 25% of GDP. Nowadays, Luxembourg has become European largest, the world’s second-largest investment fund center, as well as European largest reinsurance center, and the euro zone’s leading international private banking center.70% of the EU’s wealth is concentrated in Luxembourg’s 700 km radius of territories. Good investment environment, perfect financial regulations, and strict confidential system are the most important decisive factors of Luxembourg’s superior private baking environment; efficient organization and management mode, personalized products and services, as well as all-embracing customer relationship management (CRM) together forms a powerful internal competitiveness of Luxembourg’s private banking industry. Therefore, relevant research on Luxembourg’s advanced experience of private banking is necessary to our country.The structure and content of this paper are as follows:Chapter 1:The introduction. This chapter elaborates the background, significance and method of this research, as well as its innovations and deficiencies. It also summarizes both domestic and overseas studies of private banking, followed by a brief conclusion.Chapter 2:Luxembourg--International Finance Center. This chapter firstly gives a brief overview of Luxembourg’s multi-dimensional economic structure, followed by a comprehensive analysis of Luxembourgs current financial situation including:banking, investment funds, corporate finance, insurance, financial environment as well as Chinese-funded Luxembourg financial institutions. The last part of this chapter introduces the recent development of Luxembourg private banking and its role in international finance center.Chapter 3:Luxembourg Private Banking. Chapter 3 firstly states the definition, origins, products and services of private banking business. Then focuses on the organization form and profit model of Luxembourg private banking business. Lastly, this chapter contains a SWOT analysis about the present situation of Luxembourg private bankingChapter 4:Case Study—the KBL Group. Choosing KBL group as a Luxembourg’s typical case aims to form a deeper and closer research on private banking. Through studying its core competitiveness, management mode, products & services, customer relationship management (CRM), and the use of Internet, chapter 4 summarizes the key of success for KBL group.Chapter 5:Enlightenments for China. At first, on the basis of Luxembourg’s advanced practical experience, combining with the actual situation of China, this chapter put forward the enlightenments for improving China’s private banking, which divides in two parts, the national policy level and institutional strategy level. Secondly, basing on the central position of RMB business in Luxembourg, this article offers some advices on China-Luxembourg private banking cooperation and products internationalization.In this paper, the possible innovation points are three. First is the research area. Comparing the previous research on foreign private banking that mainly focused on several models such as:European model, North American model, Asian model, or mainly concerned several countries such as Switzerland, Singapore, the United States etc., this article specifically choose Luxembourg which is quite rare in the past. Second is the research perspective. This article learn from the KBL group’s "Internet+" strategy in the development of the private banking business model, then advise our country to reinforce the use of the Internet in both internal management and external services of private banking industry. To be more precise, it means use the Internet data to optimize the internal management and use the online application to improve customer experience. Third is the cooperative innovation aspect. Basing on RMB internationalization process and its growing importance in Luxembourg’s financial market, this paper wants to promote the internationalization of China’s private banking products through China-Luxembourg cooperation, such as cooperation on UCITS and dim-sum bonds.The deficiencies of this paper are:first is the private banking’s high degree of privacy made some specific information about the clients and assets difficult to collect. The second is Luxembourg’s the official language are French and German, so most of the relevant literatures are French. As my French level is limited, this paper may not have done a full collection and sorting. I hope through constant study in the future, the ability of data collection can be improved, and with more data of private banking be revealed, a better empirical research and analysis can be done. |
