Research On Personal Financial Services Development Of ZZ Bank

After the reform and opening up,The Chinese economy entered a period of rapid and sustained growth.With the development of economy and society,the income of the national property is constantly increasing,and the family wealth is accumulating.At the same time,with the growing awareness of financial management of residents,The Personal Financial Services of China's commercial banks have a huge market space and development potency.However,with the deepening of the reform,China's GDP growth rate reduced from 11% in 2005 to 6.7% in 2016,China's economy stepped into the "new normal" phase of shifting down the growth rate,adjusting the structure and maintaining stable growth.China's economy has entered a period of medium-to-high growth,which is to maintain a level of 6%-8% and a decline in economic growth has been normalized.The stable downward trend of economy in the new normal will give rise to the non-performing loan in the banking industry.Generally,economic growth is down by 1 percentage point,and the rate of non-performing loans ratio will rise by 0.1 percentage point.As long as the economy goes down,there will be some businesses facing financial difficulties,or being eliminated,or being reorganized.It has been an undisputed fact that the profit growth rate has been went down in the traditional bank operation mode.Therefore,under the new economic environment,commercial banks can only cope with the fierce competition by opening their minds,thinking positively,accelerating their transformation and developing creatively.In addition,with the deepening of the market-based reform of interest rates and the impact of the Internet financial,interest rate elasticity is greatly increased,interest spread of deposit and loan continue to be squeezed in the future,the cost of capital is rising,profit space of relying on traditional deposit and lending business will sharply shrink.Severe market conditions calls for a radical transformation of commercial banks,transforming the mode of operation and management,pursuing the profit pattern of intermediate business creating dominant income,making the intermediate business become the main profit growth points of commercial bank.Therefore,as an important intermediate business in personal wealth management business,the Personal Financial Services become the focus of business transformation and strategic adjustment of commercial banks.Commercial banks develop the Personal Financial Services,which is beneficial to solve the problem of bank capital constraint:financial business rarely takes up capital,have lower risk and higher profit,which is advantageous to calculate economic capital of the bank and improve capital adequacy ratio;Which can improve the profitability of the bank: financial business is relatively less affected by economic fluctuations,which can optimize the structure of profit;Which is advantageous to deal with market-oriented interest rate reform of the bank: financial business makes profit not by getting interest spread of deposit and loan,which can expand the business scope,improve the level and the stability of earnings,so as to adapt to the development of market-oriented interest rate reform.Based on the significant meaning to the development of bank,the Personal Financial Services has become an important component of commercial banking and an important area of competition between banks in this stage.The Personal financial Services of Chinese commercial banks started late,so there are many problems with its fast development.These problems not only affect the business management of commercial Banks,but also cannot meet the growing demand of personalized wealth management in China.Since carried out the Personal Financial Services in 2010,ZZ bank has obtained great development in the business organization structure,the financial product type and sales channels,the business process,the product sales scale,the sales revenue and so on.However the Personal Financial Services still has many problems with the rapid development,such as unreasonable structure of personal finance customers,a huge gap in the wealth managers,financial products serious homogeneity,backward marketing and service concept,low proportion of wealth-management business income.Exploring the reasons of the problem,which can be summarized as five aspects: unreasonable financing customer stratification standard,imperfect wealth managers training and examination system,lack of product and the service innovation ability,the influence of the separate operation and regulatory system and the constraint of commercial bank operation strategy.Finally,combined with China's specific national conditions,and learning advanced experiences from commercial bank of developed country in developing the Personal Financial Services,we can put forward five proposals: detailing customer segmentation standard,improving the financial manager training and assessment mechanism,emphasizing on product innovation and brand cultivation,strengthening the construction of electronic banking channel and promoting the value of each channel,adhering to the customer as the center,and strengthening risk prevention,to promote the development of the Personal Financial Services of ZZ bank.