Case | HBS Case Collection | October 2019

China Merchants Bank: Ushering in the Era of Family Office in China

by Lauren Cohen, Hao Gao, Billy Chan and Dawn H. Lau

Abstract

China Merchants Bank, the sixth-largest lender in China, intends to boost its family office business as a result of an increase in the population of ultra-high net worth individuals. Already ranked China’s number-one private bank with AUM exceeding US$300 billion, the Bank is exploring different ways to cater to the demand from newly minted billionaires and their families and to maintain its competitiveness in retaining these customers amid fierce competition with domestic and foreign banks. Management also needs to brace for an emerging trend in which super-affluent families opt to reduce their reliance on traditional bankers by setting up independent family offices. The case raises issues in segmentation of private banking, change in organization design, and devising strategies for target customers and value creation.

Keywords: Family Office; Strategy; Banks and Banking; Organizational Design; Competitive Strategy; Banking Industry; China;

Language: English Format: Print 18 pages EducatorsPurchase

Citation:

Cohen, Lauren, Hao Gao, Billy Chan, and Dawn H. Lau. "China Merchants Bank: Ushering in the Era of Family Office in China." Harvard Business School Case 220-032, October 2019.

About the Author

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Lauren H. Cohen
L.E. Simmons Professor of Business Administration
Finance
Entrepreneurial Management

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