Research On The Revenue Model Of Private Banking In Commercial Banks

Private banking is a top-notch package professional service for high net-worth(HNW)customers,is an antique financial service and stems from Switzerland.In recent years,due to the accumulation of wealth scale caused by rapid economic development,the HNW customers' wealth management has been gradually evolved from the retail banking to the personal wealth management and then to the private banking.According to the international conventions,the private banking business generates the profit which is 5-12 times higher than that from general retailing as it occupies fewer funds.At present,the financial institutions which can offer the private banking services include commercial banks,securities companies,insurance companies,trust companies,assets management companies,funds companies,third-party wealth management companies including the Internet finance.The paper,based on the perspective of commercial banks,researches the profit-making models of their private banking services.The paper,through quoting the figures,tables and data from relevant wealth databases,annual reports of commercial banks and various industry associations,defines the organizational structures,service models,profit-making models and so on of private banking by applying the normative analysis,analyzes the profit-making models of private banking of commercial banks by adopting comparative analysis and inductive analysis,and divides the construction of profit-making models into: market and customer segmentation,profit-making model selection,and individualized product and service configuration based on customer segmentation.At the same time,the paper,by combining China' actual situation,takes ICBC(Industrial and Commercial Bank of China)as the example,researches its reasons for selecting the profit-making model through analyzing its development background,profit performance,products and service characteristics and so on,and based on it,the paper summarizes the development problems existing in the profit-making model of China's commercial banks and offers the corresponding policy suggestions on the future development of the profit-making models.It is of key significance for China's commercial banks to adapt to the domestic economic environment,take the lead in establishing scientific profit-making models which accord with China's national situations and get the preemptive opportunities in the competition.