| The traditional profit model of financial institutions represented by commercial banks in China has been greatly impacted by continuously accelerating process of interest rate marketization reform during recent years,resulting in significantly narrowed net interest margins as well as the traditional dominant businesses being eroded by other new financial institutions.Under this circumstance,commercial banks have been increasing their attempts and explorations on "mixed business" within the regulatory framework to reduce the excessive reliance on interest spread income.Among them has the enhancement of the intermediate business represented by wealth management been considered as one of the most important approaches,which has recently been widely adopted for future development as one of the strategic focuses by many commercial banks against the intensifying market competition.However,commercial banks’ the traditional business model of wealth management has been severely impacted by the introduction of “New Regulations on Assets Management”(1)and a series of supporting policies,which indicates the regulators’ increasingly strict requirements on preventing systematic financial risks as well as prompting financial institutions to better serve the real economy.According to the market situation,with the rapid growth of national income,the weakening of property investment attribute and the continuous strengthening of residents’ awareness in asset allocation,the demand of Chinese residents’ financial management has become more diversified and refined,additional allocation of financial products has become the general trend of residents’ asset structure adjustment.However,despite the fact that the scale of China’s wealth management market has ranked second in the world,the proportion of residents’ financial asset allocation still has a large gap compared with the world’s developed economies.This indicates not only that the China’s wealth management industry has a huge growth potential to be explored in the future since its development is still lagging behind,but also reflects that the current business capacity in wealth management of China’s financial institutions can hardly meet the increasing market demand.Combining all these factors,commercial banks in China are facing an imminent transformation pressure from the perspective of business development in wealth management.This paper takes Bank C Branch X as the research object.After experienced rapid development over the past decade,the wealth management business volume of Bank C Branch X has reached a certain scale,but it is currently facing the problems of declining in revenue,slowing in scale growth and decreasing in new customer acquisition.Firstly,this paper analyzes the causes of the problems encountered by the wealth management business of C Bank X Branch,with the help of theoretical methods such as customer relationship management,STP,life cycle,and asset allocation,which are mainly due to marketing-driven bias,imperfect customer management system,lack of professional talent team,and insufficient support from financial technology.Secondly,the development trends of wealth management business are analyzed by applying PEST theory,the experiences are summarized through the case analysis of domestic and foreign excellent practices in wealth management,and then combines with the questionnaire survey on the wealth management needs of X branch’s customers,so as to generate inspirations for the business development of Bank C Branch X.Eventually,a strategy for the business transformation of wealth management is proposed,taking into account the specific conditions of Bank C Branch X itself.Although wealth management business transformation strategy proposed in this paper is a strategic idea based on the actual situation of C Bank X Branch,the problems and challenges faced by major domestic commercial banks in wealth management business are common at present,so to some extent,other commercial banks’ wealth management business can also find the significance for transformation and development from it. |
