Yachts, private banquets, family trusts... small banks are quietly winning over "county-level tycoons".

For a long time, private banking clients with tens of millions of assets, as the top customer group of domestic banks, have always been deeply tied to state-owned banks and leading joint-stock banks.

However, this "top-tier" wealth has also begun to be scouted by financial institutions in lower-tier markets.

In July 2026, Shaanxi Xianyang Rural Commercial Bank officially established its Private Banking Department, becoming one of the few private banking departments in China's rural credit system. When rural credit institutions and rural commercial banks, which serve the front lines of the rural economy and have the most room for improvement, begin to enter the market for serving high-net-worth individuals, it clearly foreshadows a new battle for wealth, extending from the developed coastal areas to the hinterland of Northeast and Northwest China.

What unique services can these "grassroots" banks offer?

Is it by creating "special services" that are highly localized and personal, or by providing services with the best value for money, or by offering other unexpected services?

Everything is attracting attention...

Rural commercial banks are lining up to poach top clients.

In China, banks are roughly divided into four groups based on their size and business scope: large state-owned commercial banks such as ICBC, ABC, BOC, CCB, BOCOM, and Postal Savings Bank; nationwide joint-stock banks such as CMB, Ping An, and CITIC; city commercial banks such as those in Beijing, Shanghai, Hangzhou, Ningbo, and Chengdu; and a larger group of rural commercial banks and even credit cooperatives that are deeply rooted in the community.

In terms of customer service levels, private banking clients with financial assets of over 6 million are almost the top tier of clients in the industry.

These top-tier clients, totaling no more than 2 million nationwide (including duplicate clients from different banks), are concentrated in the hands of the five major banks: ICBC, ABC, BOC, CCB, and CMB.

But now, rural commercial banks, which are not particularly strong domestically, are also getting involved in this market.

In July 2026, the Private Banking Department of Shaanxi Xianyang Rural Commercial Bank was officially established. The bank stated that it will focus on high-net-worth individuals, high-quality entrepreneurs and high-end family clients, and is committed to creating an integrated financial service model for individuals, families and enterprises.

Looking across the country, Xianyang Rural Commercial Bank is not an isolated case. As early as May 2013, Jilin Jiutai Rural Commercial Bank established a private banking department, focusing on one-stop customized financial services for individual clients, making it one of the earliest pioneers in the private banking field within the rural commercial bank system.

Around 2020, rural commercial banks in developed cities, such as Shanghai Rural Commercial Bank, began to set up wealth management and private banking lines at their headquarters to serve high-net-worth clients in the region.

In February 2023, Shunde Rural Commercial Bank opened its private banking center, establishing a complete "1+N" private banking service system (i.e., "1 financial advisor + N experts in various fields") to attract top local wealth clients.

Around the same time, Changshu Bank began to reap the rewards of its private banking business by creating a differentiated positioning of "people-friendly private banking." The 2025 annual report shows that the bank had a total of 4,519 private banking clients, with total assets of 28.675 billion yuan.

Clearly, rural commercial banks and private banking are not incompatible; rather, there is great potential between them.

Provides a variety of high-end private services

The report not only summarizes fund return data, but also analyzes excess returns.

So what kind of services can rural commercial banks provide?

Don't be "misled" by their names; in fact, the "high-end customization" of rural commercial banks is not "tacky" at all.

For example, Shunde Rural Commercial Bank's private banking division reportedly created a "1+N" integrated service model, consisting of "1 financial advisor + N experts from various fields." This model combines various expert resources to serve the bank's private banking clients and gold-level or higher corporate clients.

In the personal privacy section, the bank offers a wide range of lifestyle benefits.

Our daily services include insurance coverage, premium flower delivery, professional housekeeping, appliance cleaning, and premium magazine delivery , focusing on enhancing the quality of our customers' daily lives within the home environment.

Health management services cover all family members of the client, and can provide high-end private physical examinations, appointments with nationally renowned doctors and accompanying patients to medical visits, and family oral care.

For travel, it offers VIP lounges at domestic and international airports, fast security checks, and VIP waiting areas at high-speed rail stations, along with airport shuttle services, Didi chauffeur services, and car wash services for all vehicle types , creating a one-stop travel solution.

In addition, they also rely on private banking clubs, with dedicated financial managers providing one-on-one support and professional teams planning the entire process, to offer private yacht afternoon tea, customized trips, and private banquets to meet clients' needs for leisure, socializing, and high-end gatherings.

In addition, there are conventional financial services such as family business succession planning, family financial management and asset allocation, and working capital assistance. Overall, this service integrates the three dimensions of individuals, families, and enterprises, building a comprehensive private banking service system covering "people-family-enterprise".

"Cross-border customization" for family wealth

Rural commercial banks in developed regions place greater emphasis on providing customized services for clients' wealth and asset allocation.

For example, in 2023, Shanghai Rural Commercial Bank established a new Wealth Management and Private Banking Department with the approval of its board of directors, bringing wealth and private banking businesses under the same department for unified operation.

In terms of services, Shanghai Rural Commercial Bank has launched exclusive private banking wealth management products to meet the differentiated investment needs of high-net-worth individuals by integrating online and offline channels.

In addition, banks collaborate with reputable and high-performing trust, securities, and fund institutions in the market to screen for high-quality assets and mature investment strategies across the entire market.

In addition to asset appreciation, insurance trusts are also established for local entrepreneurial families . By cooperating with market trust companies, the leverage effect of insurance is combined with the asset isolation and targeted distribution functions of trusts to help families pass on their wealth in an orderly manner.

In addition to financial products, private banking offers a wide range of benefits and activities.

In terms of health and wellness, we offer services such as health science lectures, consultations with renowned doctors, and unique medical experiences to cater to our clients' healthcare needs.

In terms of cultural life, we select resources related to traditional Chinese culture, aesthetics, and humanities and hold high-end art and culture appreciation and private sharing events.

At the same time, we will create a series of "Wealth Afternoon Tea" salons, inviting experts from inside and outside the industry to exchange and share their insights on investment planning, wealth inheritance, and legal and tax practices.

For private entrepreneurs in Shanghai, we have launched an integrated business-investment-private partnership service, which integrates industry expert resources to provide a comprehensive solution for their business operations, financing and mergers and acquisitions, equity governance, and capital market-related needs.

Overall, it is a comprehensive ecosystem service that covers both daily life and targets core needs.

Private clubs and differentiated services

Rural commercial banks in Northeast and Northwest China have their own unique characteristics.

For example, Jiutai Rural Commercial Bank established its Private Banking Department in May 2013, beginning to provide one-stop customized financial services to high-net-worth individuals. This includes offering one-on-one customized wealth management products for investments exceeding RMB 1 million, introducing trust products and asset management plans to enrich clients' investment choices, and providing investment guidance through the "Jiushang Wealth" WeChat mini-program.

The bank has also set up a dedicated value-added service area, creating an elegantly decorated private banking club with private meeting areas, comfortable relaxation areas, and modern multi-functional areas, providing a one-stop service experience for business leisure, sports and wellness, and exclusive wealth management.

It is understood that the club offers experiences such as tea ceremony, wine tasting, and golf, and regularly holds art appreciation meetings, various lectures and salons, as well as themed salons on wine, jewelry, porcelain, and tea ceremony, building a high-end business social platform and strengthening the communication and connection between the bank and its customers.

To cater to the diverse needs of our clients, our exclusive value-added services include VIP medical checkups, expert appointments, traditional Chinese medicine wellness services, and private physician consultations. We also provide investment immigration consulting and assistance, as well as services for children studying abroad. Clients can enjoy exclusive privileges such as priority processing, one-on-one consultations, and discounted fees.

The bank also offers a unique fully automated safe deposit box service, which can store valuables such as jewelry, paintings, contracts and documents for customers. The service features privacy, security and flexible rental periods.

How can a small bank provide "top-notch service"?

In a wealth management market dominated by giants, how can small and medium-sized rural commercial banks gain a foothold?

The answer lies in "trust barriers" and "targeted services" .

On the one hand, local rural commercial banks have been rooted in the local area for many years, establishing long-term relationships with some local private entrepreneurs and high-net-worth business owners. This sense of trust in a "familiar society" based on geographical and kinship ties is something that other large banks find difficult to easily sway.

At the same time, as a financial institution, by concentrating resources, it can provide targeted services to meet the specific needs of its clients. Unlike large banks' private banking divisions, which emphasize platform support and standardized service solutions, first-tier rural commercial banks can often offer more flexible and targeted services.

For example, Shanghai Rural Commercial Bank's "Integrated Business-Investment-Private Partnership Service" for private entrepreneurs can integrate corporate financing and M&A, equity arrangements, listing services with the wealth management of entrepreneurs' families.

For example, Shunde Rural Commercial Bank can also flexibly combine inclusive business loans with comprehensive consumer loans.

This deep partnership, which "manages your money and helps you build your career," creates a powerful competitive advantage through differentiation.

The inevitable path to "comprehensiveness"

Despite the frequent moves by rural commercial banks in many regions to develop private banking services, it is undeniable that only a minority of rural commercial banks have established independent private banking departments. The personal banking business of a large number of rural commercial banks in central and western regions and counties is still limited to ordinary retail and wealth management services.

However, opening a private bank is, to some extent, an essential step for a bank to improve its service levels and capabilities.

For many rural commercial banks that are new to this field, there are still several practical hurdles to overcome in order to further expand their private banking business:

The first step is to strengthen "hard power," including improving wealth management products and financial service capabilities. Generally speaking, limited by their own capabilities and regulatory requirements, ordinary rural commercial banks find it difficult to develop dedicated private banking products on a large scale, relying heavily on distributing products from external institutions, and their independent asset allocation capabilities urgently need to be improved.

Secondly, there's the upgrade of "soft power." Truly top-tier service relies on top-tier wealth advisors, and excellent client service requires top-tier client managers. Some rural commercial banks still operate their private banking businesses alongside their retail wealth teams; therefore, building dedicated, highly skilled private banking investment advisory teams is a significant challenge.

Of course, for rural commercial banks, venturing into the new wealth management arena of private banking should not be a superficial project aimed at blindly pursuing scale expansion. Only by leveraging their strengths and avoiding their weaknesses, combining localized human touch with professional financial depth, and becoming "top-tier wealth managers" who understand local entrepreneurs, can small banks carve out their own blue ocean in the vast sea of wealth management.

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