1. IntroductionIn China, HNWIs (High Net Wealth Individuals) with more than $1 million in investable assets are growing rapidly. This provides a huge opportunity for the private banking sector. Private banking can be defined in different ways. At its core, private banking is about managing every aspect of a client's financial life. However, especially in the Asian market, it is not only about financial management, but also about all aspects of social life and different stages of life care. Figure 1. Comparison between private banking and traditional retail banking. Customers Service offering Main source of income Responsible person Traditional banking Mass financial management Net interest margin Bank tellerPrivate banking HNWI Financial management, advisory service, value added service Fees Private bankerPrivate banking has been one of the most popular segments more attractive to financial institutions. Chinese commercial banks' revenues are highly dependent on NIM (net interest margin), which is the difference between interest income. However, to become global financial players, commercial banks must diversify their sources of revenue. Private banking activities are paid services, so they generate good commission income. In recent years, the average profit margin of private banking businesses in the United States has exceeded 30%, and average annual profits have increased by 12-15%, which is far higher than the profitability of traditional private banking businesses. detail. China's private banking profit margin is almost half that of the United States, because Chinese HNWIs are unfamiliar with private banking fees. However, the profit margin in China is increasing rapidly.Figure 2. Regional profit margin of private bankingPrivate banking in China is still at the beginning......middle of paper......the first line. However, as the private banking industry is relatively new in China, it is very difficult to recruit experienced local professionals to the market. There is a shortage of qualified talent in the market. There simply aren't enough local private bankers to meet the growing demand. Competition for talent is intensifying and causing compensation costs to rise rapidly. Trust is an essential element of customer satisfaction. Building trust and loyalty between HNWIs and private bankers takes time and a lot of investment. Changing private bankers often represents a huge risk for private banks. As a result, financial institutions have increased their compensation costs to retain experienced private bankers. Famous international private banking institutions pay 30-40% more for highly talented private bankers, making it more difficult to retain high-quality talent..