Personal financial management business, also known as wealth management business, is one of the important profit sources of commercial banks in developed countries. Mature financial services in the world refer to a series of service processes in which banks use the customer information and financial products they have, analyze customers' own financial situation, formulate customers' financial goals and plans by understanding and exploring customers' needs, and help them choose financial products to achieve their financial goals.
Personal financial management refers to the professional service activities such as financial analysis, financial planning, investment consultant and asset management provided by commercial banks for individual customers. According to the different management and operation modes, the personal business of commercial banks can be divided into financial advisory services and comprehensive financial services.
Among them, financial advisory services refer to professional services such as financial analysis and planning, investment advice and personal investment product promotion provided by banks to customers. In the financial advisory service activities, on the basis of providing financial advisory services by commercial banks, we accept the entrustment and authorization of customers and carry out investment and asset management business activities in accordance with the investment plans and methods agreed with customers in advance.
The current situation of personal finance business in China;
In the late 1990s, some commercial banks in China began to provide professional investment consultants and personal foreign exchange financial services to their clients. In September 2000, the People's Bank of China reformed the foreign currency interest rate management system, which opened up a policy channel for foreign currency wealth management business. In the following years, foreign currency wealth management products have been in a dominant position, but the overall scale is not large, and there is no competitive market.
The direct reason why small and medium-sized joint-stock commercial banks have become pioneers in promoting the development of RMB wealth management business is that under the background of the rapid growth of credit supply at that time, the time savings deposits of small and medium-sized banks are relatively low and lack of stable sources of funds. Issuing RMB wealth management products can enhance their storage capacity and alleviate the pressure of tight funds.
In the initial stage of RMB wealth management products, the investment direction was basically fixed-income tools such as inter-bank government bonds, central bank bills and money market funds. In terms of risk management, compared with the original foreign currency wealth management products, RMB wealth management products are more standardized, and customer funds are isolated from the bank's own funds.