The Beijing branch of Industrial and Commercial Bank of China (ICBC) designated on December 19, 2004 four "banks for the rich: 8n wealth center, directly targeted customers with a capital of over RMB500, 000 yuan.

Several days later, China Everbright Bank launched its first VIP cards for costumers owning over RMB100, 000 yuan of financial capital. Besides common financing services, Everbright will also provide the VIPs with favorable services such as convenience to 54 reputed hospitals in Beijing and top-notch golf trainings.

CITIC Industrial Bank and Huaxia Bank could not help following with their VIP financing services and individual financing center respectively.

Sings show, as we are drawing nearer to the year of 2006, in which China's banking sector will be completely open towards foreign capitals, Chinese banks are seeking a breakthrough. With high-level customers as the new focus of competition, Chinese banks are trying to seize a place before foreign capitals pour in.

Foreign-funded banks in advance

Statistics show, by the end of 2004, 18 cities have been open to foreign banks for renminbi businesses. Totally 62 banks of 19 countries and regions have established 204 operational institutions, 105 of which have been approved to run renminbi businesses. It has been inevitable for China's banking sector to face waves struck by foreign financial institutions.

With foreign financial institutions coming, China's banking sector will definitely be invigorated while at the same time faced with a hand-to-hand battle between national banks and foreign ones, who have mature ideas on and rich experience in the customer management.

HSBC's one-stop financing service meets the needs of VIPs in an all-round way with characteristic products. Citybank will, with foreign exchange consultancy and telephone information, help customers make money through currency transformation. These performances have deeply impressed the Chinese customers.

Respond to crisis with strategies

Facing the aggressive foreign banks, are Chinese banks ready?

To make 80 percent of all the profits out of 20 percent of all the customers, the "20-80 rule" has long been acknowledged in the banking sector. No matter in terms of strategy or marketing, the 20 percent of the quality customers are crucial to the development of a bank. Foreign banks, who have rich experience in dealing with high-level customers, are incomparably superior to their Chinese counterparts in terms of brand and credit. Under such circumstances, Chinese banks will soon suffer losses of large amounts of deposits and quality customers should they fail to pull themselves out of the sense of superiority.

Chinese banks are seen to have realized the existence of crisis and take measures to respond. However, it is still unknown to us whether the they, short of field experience and quality talents, can win the battle for the rich.

By People's Daily Online