Asian financial storm in 1997 seriously impacted the banks of Asia. Likewise, the banking industry of Taiwan was by no means staying away from the disturbances. In consequences, bad debts increased enormously. Hence, the government announced related measures to rescue the financial industry continuously. After the storm, the banks reverted with a new operation model¡Xwinning major profits from risk-free transaction charge, instead of gaining spreads from loan businesses. In another word, ¡§Wealth Management¡¨ means ¡§Money Management¡¨. According to the report under the title of ¡¨The consumption financial market in Asia, the future change of the decade¡¨ published by SSB in 2003, the potential of wealth management market in Taiwan is astonishing. In Year 2000, the number of families holding property available for investment over NT¢C3,300,000 was 400,000 in total. Hopefully, the number could exceed 1,010,000 with a 9.8% growth rate per year. Comparing with European countries and USA, Taiwan can be regarded as a virgin soil to rival. Therefore, all the banks set foot in this market one after another. This research has been composed based on case study. It adopts marketing 4Ps (Product, Price, Place & Promotion) as the principle approach and the method of ¡§interview¡¨ to probe into the marketing policy of the ¡§selected bank¡¨, by presenting the current condition and problem the bank faces in developing wealth management business, and thus bring up opinions of the writer.

Currently in Taiwan, there are about 450,000 people with net assets of US$100,000 and this number is estimated to exceed 510,000 (people) in three years. The market of wealth management is in its infancy and the potential for future development in this sector is huge. Moreover, the emerging trends of financial holding companies, ¡§cross marketing¡¨ strategies as well as an under-cultivated market will be contributing factors for the banking industry to be able to expand and grow into the wealth management sector. In the highly competitive financial sector, the margin for administering traditional deposits and lending is getting narrower all the time. Furthermore, under government regulation, a bank must provide a certain amount of reserves for bad debts in its administration. Therefore, the main objective of the Bank of Kaohsiung is to create more revenue for its sustainability. The Bank of Kaohsiung (BOK) has been engaged in the wealth management business since September 2002. This report details the study of ¡§ The Strategy planning for the wealth management sector for the Bank of Kaohsiung¡¨. The motive of this research is not only to gain more revenue from non-risk administrative fees but also to help improve the core competitive ability of the Bank of Kaohsiung. This research mainly focused on the SWOT (Strength, Weakness, Opportunity, Threat) analysis of the staff of BOK; to understand their position in the promotion of wealth management and how to plan the market strategy for this sector through a systematic procedure (Questionnaire Survey included). Through this study, we would like to understand our clients¡¦ needs as well as the direction of future development. This would enable us to improve our competitive edge in this sector. In conclusion, we hope that this document may provide a reference guide to peers for promoting their wealth management business in the banking industry.

Currently the competition of Taiwan bank wealth management has reached the climax. There might be hidden risk from this rush. In this highly competitive environment on growth and profit pursuing, the problems of the performance evaluation system, such as low employee stability and lack of product segments for the customers of M shaped society, result in further challenges, specially the aggressive action of private bank on big customers. Besides, the organization flexibility would affect the future of the bank herself. The study is based on the organization culture and the Resource-Based competitive advantage of the foreign bank as the company advantage to modify the organization strategy, to higher employee stability and to enhance customer relationship. The study uses RBV as research method by analyzing the resource of the customers, the employees and the banks to understand the advantage of the wealth management in foreign bank and how the bank stays sustainable operation because of the resource accumulating. Furthermore, from the result of RBV, we can understand how the bank can strengthen continuously the existing resource advantages and affect the employees and customers.

None

Rapid growth of wealth management industry in Taiwan caused serious business dispute and oversell problem in recent years, and this study shows that wealth management banks only emphasis on how many products they sell and ignore how to help customers to make their financial plans is the key factor according to the analysis of laws and present situation. Besides, this study attributed this kind of phenomenon to over commission-orientation salary structure of financial consultants. After this situation, this study selected balanced scorecard to view the performance indicators of financial consultants work for banks which main business is on wealth management in order to get rid of financial factor only stand. The summary conclusions of this study are as below: 1. Wealth management industry gives priory to commission- orientation salary structure. 2. Banks and financial consultants have different stands in today¡¦s wealth management industry: banks emphasis on financial factor such as fee income and financial consultants pay their attention to customer factor. 3. Financial consultants who more care about their professional abilities have not only more skills to help customers to make financial plan, but have higher motivation to keep customer¡¦s equities. 4. Whether banks close to the customers or not won¡¦t directly affect how financial consultants emphasis on customer factor. 5. Counterproposal: fee income achievement rate, policy selling. 6. Advised performance indicators: AUM, extended AUM, customer asset return rate, moderate CIP

分析從瑞士、新加坡、香港等國的財富管理發展經驗一路走來，財富管理業務是人與人關係緊密的業務；是承諾與信任的長期關係；是政府具有先見之明全力支援的具體結果；也是業者戮力以赴兢兢業業的開花結果。根據凱捷顧問公司 (Capgemini) 與美林全球財富管理 (Merrill Lynch Global Wealth Management)《2011年全球財富報告》，全球富裕人士人數增加了8.3%，相對2009年17.1%的大幅成長，步伐轉趨溫和，較有利於長遠的穩定成長。同時，亞太區富裕階層的人數達330萬人，是現在全球富裕人士的第二大集中地，緊次於北美之後，並首次超越歐洲。台灣富裕人士數目在2010年底估計達94,100人，較2009年增加13.7％，財富總額年增升14.7％，達3,020億美元，台灣的財富管理市場也逐步邁入成熟市場階段。這是全球財富位移的結果，也為亞洲的財富管理事業開展了新的世紀。然而，過去台灣銀行業在淨利息收入占營業收入平均達到67%的比率下，對比外商銀行的收入項目多元化，未來要如何調整現狀以及增加其他獲利成長來源，藉以分散台灣銀行業收入過度集中的風險、突破目前銀行業經營瓶頸以及如何越過同質性過度相似的潛在經營風險。這些都是未來全力發展財富管理業務的多空條件與時空背景。當然，其中也分析了台灣長期低利率環境的成因與因為信用風險造成嚴重之逾期放款及呆帳率上升等經營風險。還有，銀行業的獲利能力比較與資產利用的好壞、風險未發生時的壓力測試或是風暴發生時的風險抵禦能力等，在在都與經營能力與策略方向有關，在發展財富管理業務時皆必須長遠地納入整合與思考。其次，分析完獲利能力與收入來源後，在擬定未來財富管理業成長的策略為： 一、做好市場區隔，保持其差異性，才能免於被取代。 二、吸引人才回流與培養新一代的區域人才與經理人。 三、營運管理策略下的分行組織設計與改造，銀行要執行明確的願景與策略，需要透過適切的分行端架構才能落實。 四、維有透過不斷地溝通、整體獎酬與績效管理的搭配才能真正使組織動起來，且根本性地改造組織文化，達成策略目標。 五、整體獎酬應該包含金錢性的固定薪酬、短期激勵、長期激勵、與非金錢的獎酬。 六、業務流程創新是企業長期成長的關鍵。愈是先起步發展CRM的企業，愈是能夠領先其他競爭對手在激烈競爭的市場上，搶先建立、維持與客戶較佳的關係。 七、除非您已擁有百分之百完全滿意的顧客，否則您仍有改善的空間...；如果您已擁有百分之百滿意的顧客，仍應隨時傾聽他們的意見，以便在他們想改變時，和他們一起改變。 八、銀行業者因從策略面、組織面到執行績效面，整體思考改善方略，累積與監控服務推動的成果，持續改善、精進，以維繫長期的服務競爭力。 九、找到對的業務代表。 十、當財富管理業的服務面項比重愈來愈重要時，人才的重要性，比以往更迫切，資金與設備都不再是重要問題。 在歷經2008全球金融風暴後的第四年，展望全球總體經濟的險峻局勢與歐洲債務與南歐負債累累的諸國，全球通貨緊縮的蠢蠢欲動，各國進出口的持續下滑，區域與各個國家發展相對停滯，財富管理業面臨的挑戰與經營風險不斷升高。國內國外的經營挑戰需要金融業業者與政府的共同因應與面對，除此，還需要更好的執行力與創新作為才能面對挑戰。以上必須正視其重要性與迫切性，需要業者與政府快速反應問題與加速提出因應具體策略，期望未來在發展財富管理事業上能夠將風險與挑戰減至最低。 / Based on the analysis of the experience of wealth management development in Switzerland, Singapore and Hong Kong, it is the close-ties to people business, it is a long-term relationship between commitment and trustworthy, it is a final result of fully support and throw-all-their-strength of government. Moreover, it is a performance of continuously striving for excellence and join-hands of wealth management business industry itself. On the basis of the 2011 Global wealth report by Capgemini and Merrill Lynch Global Wealth Management, Rich has increased by 8.3% in the world, relatively substantial growth by 17.1% in 2009 and the development pace became a moderate way and became more conducive to stable long-term growth. At the same time, Asia-Pacific wealthy over 3.3 million people is now the world's second-largest concentration of rich which is more close to the North America and beyond Europe for the first time. The number of affluent people estimated in Taiwan reached 94,100 at the end of 2010 which increase by 13.7% over 2009 and the total wealth rise 14.7% with amounted to $302 billion. Taiwan's wealth management market has gradually entered a mature stage. This is the result of movement of global wealth, but also the new century for the wealth management business in Asia-pacific. However, the net interest income over operating revenue reached an average ratio of 67% of Taiwan banking in the past years. In compared with the diversification income sources of foreign banks, how to adjust status for the Taiwan wealth business in the near future as well as to get more other sources of profit growth in order to diversify the revenue concentrating risk of Taiwan wealth business. Besides, it is to break through the current banking operational bottlenecks, and to cross the homogeneous over similar potential business risks as well. Of course, we also analyze the puzzle of the long-term low interest rates in Taiwan and explain the serious operating risk of increased rate of loan loss and loan loss provision. Also, the comparison of profitability of banking and asset utilization, risk stress testing or risk resistance as it occurs which are related to the daily operation and strategic direction, we have to include a long-term consolidation and integration in the wealth management business development. Secondly, after discussion of profitability and income sources, We put more factors into the consideration of future strategic growth including, 1. The wealth management industry should do the market segmentation and maintain their differences which can be exempted from being replaced. 2. Attracting brain gain and develop the next generation of regional personnel and managers. 3. Branch organizations should make a new design and reform to implement the appropriate schema. 4. Through the overall mix of reward and performance management and the constant communication, we can really move and make a fundamental transformation of the organizational culture and achieve strategic objectives. 5. Overall reward should contain money fixed pay, short-term incentives, long-term incentives, and non-pecuniary reward. 6. Business process innovation is the key to long-term growth. More head start CRM Enterprise, more capable of leading competitors in a highly competitive market, the wealth management will be first to establish and maintain better relationships with customers. 7. Unless you have completely 100% satisfied customers, otherwise you still have room for improvement ... If you already have 100% satisfied customers, you should still be ready to listen to their views, so that when they want to change, and change with them. 8. Bankers continuously get improvement, enhancement, maintaining the long-term competitiveness of services through the business performance, organizations, overall thinking on strategy, accumulation and services. 9. Find the right representatives. 10. When the services dimension in the wealth management industry become more and more important, the importance of talents is more urgent than ever, and funding and equipment are no longer important issues. We are now in the fourth year after the 2008 global financial turmoil, as looking to the overall global economic precarious situation with EU and southern European debt-ridden countries, the global deflation is ready to go and the rates of imports and exports continued to decline in many countries. At the same time more regions and international states get stuck and stagnation. We need to confront the domestic and foreign business challenge side by side with each other and we have to boost the ability of execution and innovation. We do emphasize the fact that execution is a discipline to learn, not merely the tactical side of business. Meanwhile, as authors had made as the recommendations for specific risks and challenges, we have to face up to the importance and urgency of mentioned situation, and need to get the rapid response of government and to speed up collecting the response of specific policies, We do expect to be able to minimize the risks and challenges in the development of wealth management business of coming years in Taiwan.

This graduate student is probing into the improper assessing system and its problem which is resulted from pursuing high growth and high profitability under a over-competition banking environment in Taiwan in recent years. As the result, the graduate student thinks that not only influences customer's rights and interests, even impacts the performance and long-term sustainability of a bank. That also drives more reputable and outstanding talents to leave Taiwanese private bank to relocate to new lands like Hong Kong even Singapore. Under the circumstances when Taiwanese government is launching ¡§The Minimum Taxation System¡¨yet without suitable supplementary measures, these by private banker from Taiwan created a trustworthy, steady, and apt-in-communication parking shore to the fleeing funds from Taiwan. As this huge economy in China's Mainland drives the mobilizing of the engine, this trend and mighty torrent are brought Chinese crowd and money tide, have drive the whole Asian economic taking off, has created more production of Asia ' the new rich class '. Overall arrangement that the private bank always only offering ethnicity's service of high assets is positive too to come to Asia, improve occupation rate of market is enough to show high assets ethnicity of Asia already form economic scale. In the past, because the middle class of Asia, in order to promote the goal and ideal of the high assets ethnicity, must create the wealth of the multiple fast with limited resources, so the trade foundation is a relatively more suitable investment way, but after the assets reach considerable scale, their demand is changed into value preserving and transformation of assets, as for basic way of the administration expense, could offer the high assets that customers stabilized the assets to manage the purpose and efficiency. This research uses Porter 5 force analysis to attempt to compare quality and transition of two kinds of models. What is critical private banking business is professional and suitable products, and to build up a comprehensive and structural platform. So far it is still a long journey of private banking in Taiwan to plan the fix-income product and texture planning before Taiwan government can be more opened in its relevant policies and regulations. Hoping the finding and discovery of this research can give play to the function advocated in the practice is used in the future, one wealth management style of ' win-win ' after all make customer and long-term management of bank.

With change of the overall economic environment, it substantially makes more and more people highly interested in other financial products and look forward to planning their wealth by multi-financial commodities. Responding these demand, the banking industry starts to be involved in the field of wealth management and invests considerable time and cost of training professional financial advisors. C Bank is not only well-known for high brand image and reputation, but also recognized by the financial industry as a wealth management consultants¡¦ training center. It is supposed to be the company of choice for people who are interested in this field, but actually found C Bank with high turnover rate in wealth management consultants. In this study, we are going to analyze the main factors causing the high mobility of wealth management consultants by interviewing with financial consultants in C Bank who are still serving and who had resigned. The result mainly could provide the reference to C Bank to get a triple beneficial situation by means of having stabilized consultants to increase customers¡¦ confidence and reduce the cost of repeatedly training new staff. It is also available for me to refer and being vigilance on the management field in the future. The result of this study points out the main factors why financial consultants working at C Bank resign: 1. leadership style, 2. personal reasons (family and health), rather than company culture and system. The health problem is also highly related to leadership style causing large psychological pressure and cannot be resolved. In order to pursue a long-term and stable growth for the company, it is rather significant for supervisors develop a leadership style can unite team members¡¦ coherence, establish a work environment with a sense of belonging and participation, satisfy their physiological and psychological needs and let all members with high identity and loyalty to the company they are willing to work for under the premise of reaching company culture (performance-oriented).

Customer is one of the most important profit resources for a firm. It is increasingly apparent that management will make a decision by customer value. This research focuses on the most critical aspect of a firm: customer lifetime value. It is used to valuing customer lifetime value by discount cash flow approach. This research uses the real option approach (ROA) and connects the concept of customer lifetime value in marketing to build a new valuation model. Real option approach is a new method for estimating the value. It resolves some disadvantage which traditional financial models such as discount cash flow approach can not value the managerial flexibility. In practice, management has many options. These options provide flexibility that adds to the value of customers. The customer investment (e.g., service and advertising) can be deferred at the design phase and under uncertainty, it can be expanded or extended if it does better than expected, or abandoned if it gets worse. There are various types of options that are related to valuing customers, such as deferral, abandonment, expansion, and contraction of investment. This research provides good solution to value customer lifetime value by using real option approach and uses bank wealth management programs as practice evidence. This research builds a fitness model to value managerial flexibility. This research finds out that the domestic banks original set up the VIP migration boundary according to American experience are unreasonable and should be adjusted. Besides, when domestic banks set up the VIP migration boundary, the most important factor they should consider is deposit growth rate instead American experience. Finally, the practice evidence of the influence the expected factors on VIP migration boundary confirms with this research¡¦s expectation.

With the increase of income and rapid wealth accumulation, people, especially those with high net worth, have increased needs for consolidating financial planning service. In order to succeed in this competitive market, all banks are establishing wealth management branches and providing varies, sometimes custom made, products and services to satisfy their clients¡¦ financial needs. The most important component of wealth management is financial consultants. Financial consultants directly service clients, and they form irreplaceable interpersonal relationships with their clients. They are a huge asset for their bank. But because of severe competition, the quality of financial consultant greatly varies. Many banks set high revenue targets for their financial consultants, which results in high turnover rate. Banks also compete intensely for the good financial consultants in the industry. Therefore, in order to retain and develop strong financial consultants, banks should establish effective, comprehensive training and career development programs. My study will focus, discuss and analysis the performance management of financial consultants in wealth management banks. For my study, I interviewed several top management officers of successful wealth management banks to gain deeper understanding of their policies on performance management. I then compared and contrasted the different banks¡¦ policies to investigate the meaning of performance management. From my study, I found every bank has its own policy in performance management that they closely abide by, and they routinely review and update their policies. Interestingly, these distinctive policies all serve the same purpose which is to motivate their financial consultants to increase sales and thus, to increase the bank¡¦s profitability. Furthermore, I learned some effective and ineffective ways to manage financial consultants. I also identified key elements to encourage high loyalty which helped to explain why it was previously difficult to recruit certain financial consultants to my bank. This dissertation is tremendously meaningful and helpful to me professionally, and I will use it to create effective policies, to motivate higher performance, and to promote high loyalty.