| With the rapid development of China’s economy in recent years,The wealth of residents is constantly increasing,especially the number of high net worth individuals and and their investable assets are gradually increasing.Therefore,their requirements for comprehensiveness,specialization,diversification,and customization of investment are becoming increasingly high.It not only ensures the preservation and appreciation of personal wealth,comprehensively allocates assets,but also the needs of family inheritance,children’s education,tax planning,and corporate financing,it is evident that the single financial product of the past could no longer meet the increasingly comprehensive and diversified wealth needs of high net worth individuals.This is a new opportunity for commercial banks to develop private banking business,while it also face challenges of intensified business competition.XY Bank has been expanding its private banking business since 2011.As a large national joint-stock commercial bank,it has been committed to exploring and providing professional,diversified,comprehensive,and refined financial and non-financial service solutions for high net worth individuals.In recent years,it has obtained a private banking franchise license.XY Bank Jinan Branch is an important development branch established by XY Bank’s headquarters in Shandong Province(excluding Qingdao).After years of operation and development,private banking business has achieved good business performance and development,but it also faces strategic development issues such as low asset allocation rate and low market share for private banking customers.Therefore,a study on the competitive strategy of the private banking business of XY Bank’s Jinan branch is valuable for the development of the private banking business of XY Bank’s Jinan branch.This article combines the relevant theories of enterprise strategic management,using strategic analysis tools such as PEST analysis and the Five Forces model,to analyze the macro environment and industry environment of XY Bank Jinan Branch’s private banking business.The research shows that the main external opportunities come from the huge future wealth space of HNW clients,the increased demand for asset allocation due to the change in clients’ investment philosophy and the improvement and effectiveness of financial technology;The main threat is the increasing downward pressure on the economy,fierce competition between domestic and foreign banks,non bank finance,and third-party wealth companies,and the construction of an external factor evaluation matrix.Then,through the analysis of the current situation of private banking business development of Jinan Branch,using the value chain,internal resources and capabilities,it is concluded that the internal advantages of the competition are its rich internal resources that facilitate the development of its wealth business,its wide network with a stable client base,the financial managers have high comprehensive quality and a complete service system,and the public-private integration linkage private banking business;The disadvantages faced include a low asset allocation rate for private clients,a lack of specialized talent teams,and a low level of revenue and profit;Subsequently,by analyzing the resource and capability elements of XY Bank Jinan Branch,several advantages of private banking business development were identified:group advantage,human resource advantage,customer resource advantage,brand advantage,investment ecosystem advantage,technological innovation ability,etc.,and an internal factor evaluation matrix was constructed;Finally,through the analysis of SWOT matrix and QSPM matrix,it is clear that differentiation strategy is the best competitive strategy with team building differentiation,brand differentiation,product research and development differentiation,marketing management differentiation customer service mode as the core.Combining the current situation of private banking business development of XY Bank Jinan Branch and its future development goals,it proposes to implement differentiation competitive strategy;At the same time,in order to ensure the implementation of the differentiated competition strategy for XY Bank Jinan Branch’s private banking business,four guarantee plans have been proposed in this article,namely human resource guarantee,product innovation guarantee,optimized system guarantee,and strengthened technology guarantee.Through the research in this article,it is expected to help XY Bank Jinan Branch’s private banking business develop a competitive strategy that is in line with its current form,relying on its internal advantages and seizing external opportunities to achieve competitive goals.And I hope that through this article,provide reasonable suggestions for the long-term development of private banking business in financial institutions in China. |
