Attitude toward wealth management services : Implications for international banks in China

Purpose - In a time of global recession and customers' pejorative perceptions of financial products, international banks need to understand the determinants of behavioral intentions of high-net-worth individuals when considering business tactics for capturing the lucrative wealth management services (WMS) markets. This paper aims to build a predictive model using the theory of planned behavior to determine behavioral intentions of Taiwanese nationals based in the People's Republic of China (the PRC) in respect of their choice and decisions about WMS providers. Design/methodology/approach -Two-phased sequential mix methods, based on the theory of planned behavior, are employed to investigate factors that influence the choice of wealth management services providers by Taiwanese based in the PRC. An elicitation study plus three pilot tests were administered for questionnaire development, refinement and finalization. The main study employs a cross-sectional study of Taiwan home nationals resident in China. Findings - A cross sectional study of 227 Taiwanese nationals based in the PRC indicated that "Feeling of trustworthiness", "Provision of flexible services", and "Feeling of cultural affinity" are the most crucial among the ten factors related to their intentions and decision making about choice of WMS providers. Practical implications - The results point to managerial implications of banks' identity, deployment of expatriates, brand-image position and a regional portfolio platform for bank management to consider entry strategies into the PRC. Originality/value - This research is the first empirical study in investigating the attitudinal dynamics on wealth management services and their implications to international banks in the PRC.