Research Of Development Strategies For Private Banking Business In Domestic Commercial Banks In China

As a consequence of the growth of the gross national economy in our country,residents have more and more disposable personal income,which leads to the higher demand of wealth management.The large amount of wealth accumulation has boosted the development of wealth management and,as the representative of high-class wealth management,the private banking industry has grown rapidly.In March 2007,Bank of China was the first bank in our country to launch into private banking,In the past ten years,private banking in commercial banks in our country has still some issues,such as lack of professional talent,lack of diversity in services,weak risk control and more.There is a big gap when compared to foreign banks,such as serious product homogeneity and lack of brand value management.This article first outlines the origin,concept,and characteristics of the private banking industry;Secondly,it analyzes the developmental status of the private banking industry in domestic commercial banks,and points out the necessity and the feasibility of further developing the industry;Thirdly,the article explores the problems of the private banking industry in a more detailed and in-depth perspective by using China Merchants Bank as an example – the leader in the private banking industry in our country.By doing PEST and SWOT analysis on the advantages versus disadvantages China Merchants Bank is facing internally and the opportunities versus challenges China Merchants Bank is facing externally,it points out the problems that exists in the development of private banking in domestic commercial banks.In the end,combined with the above analysis,it gives some proposals and feasible strategies targeting at those problems which the domestic commercial banks exist,including establishing brand advantage,improving customer stock,promoting innovative ability,seizing new opportunities,focusing on policy changes,among other aspects.Through the concrete case of China Merchants Bank,this article pointed out the concrete suggestions to the development of the domestic commercial banks in the current national conditions,which will be of practical significance.