An analysis of the development of personal finance business of Minsheng Bank

Citation

Zhang, Haowei. (2017). An analysis of the development of personal finance business of Minsheng Bank. (Independent study, Master of Business Administration). Bangkok: Siam University.

Abstract

Since the reform and opening up, China’s economy has gradually entered a stage of rapid development, and disposable income of households and individuals has continued to increase. Demand for wealth management products and services has also increased. As far as commercial banks are concerned, the continuous development of China’s financial reform and the continuous advancement of interest rate liberalization have greatly reduced the profitability of traditional bank deposit and loan businesses. Personal wealth management services have become a new profit growth point for commercial banks and have gradually become the development of commercial banks. Key business. As an intermediary business with low risks and costs, personal wealth management services can attract high-quality customers by providing higher yields than savings of the same period, increase customer loyalty, bring more funds to commercial banks, and can also increase The income and profits of commercial banks have driven the overall development of commercial banks. While domestic commercial banks compete to develop personal wealth management services, the expansion of China’s financial liberalization has also attracted foreign banks to join the personal finance market. In recent years, under the background of the development of Internet finance, commercial banks’ personal wealth management services are facing tremendous pressure and challenges. Therefore, commercial banks urgently need to strengthen and improve personal wealth management services and take effective measures to address the development of personal financial services. The existing problems, in turn, have a place in the fierce market competition. This paper takes China Minsheng Bank as the research object, and makes a systematic analysis and discussion on the problems existing in the development of personal wealth management services and the countermeasures that should be taken.

This article consists of five chapters. The first chapter is the introduction. It gives a brief introduction to the topic background, research significance, research methods, etc., and combs the research status at home and abroad. The second chapter is an overview of Minsheng Bank’s personal wealth management business, discusses the meaning of personal wealth management business and the importance of developing wealth management business, and analyzes the development status of domestic banks and Minsheng Bank’s personal wealth management business. Since the People’s Bank of China launched a personal wealth management business, it has maintained a rapid growth trend. The type and quantity of wealth management products have begun to take shape, and they have taken a leading position in domestic commercial banks. However, there are bottlenecks in the development of Minsheng Bank. The third chapter mainly analyzes the problems existing in Minsheng Bank’s personal wealth management business: the product structure is irrational, the customer stratification is not enough; the overall quality of employees is not high, the construction of financial management team is lagging behind; the risk management level is low, and the internal control system is not perfect. The external competition is fierce and the overall lack of competitiveness. The fourth chapter puts forward countermeasures and suggestions for the development of Minsheng Bank’s personal wealth management business: strengthen product innovation, implement differentiated customer management, increase brand competitiveness, pay attention to the training of wealth management professionals and management personnel, reduce talent loss, and improve internal risk control system. , improve investors’ ability to identify risks. The fifth chapter is a summary of the full text. This article believes that Minsheng Bank needs to make substantial progress and development in its personal wealth management business. It also needs to make unremitting efforts in various aspects and continuously enhance its market competitiveness.

Keywords:  Minsheng Bank; Personal Finance Business; Development Strategy.

An analysis of the development of personal finance business of Minsheng Bank

International Master in Business Administration (IMBA), Siam University, Bangkok, Thailand