Retail Banking Reform Intensifies! Bank of Communications Revokes Only 5 Approved Private Banking Exclusive Licenses—What's Behind the Move?

Ask AI · How will the Bank of Communications optimize resource integration after revoking its rare private banking license?

Author | Shi Ye Yun Ye

Editor | Gu Ning

The Bank of Communications quietly announced the deepening of retail sector mechanism and system reforms, planning to revoke its private banking license; what is the intention behind this move by the wealth giant?

At the end of February 2026, the Bank of Communications quietly issued an announcement stating that the board of directors had approved the “Deepening Retail Sector Mechanism and System Reform” resolution; less than a month later, the bank proposed to apply for the revocation of its private banking license.

Through review, the private banking license is a truly “rare item.” Over the past 18 years since 2008, only five banks have been approved. Besides the Bank of Communications, only ICBC (2008), ABC (2010), Industrial Bank (2012), and Hengfeng Bank (2022) have obtained private banking licenses. Among the 42 listed banks nationwide, those holding private banking licenses account for less than 1/8.

Now, with the Bank of Communications suddenly taking the lead in “cutting” this scarce resource to build a world-class bank with distinctive wealth management features and global competitiveness—what is the purpose? The bank stated, “After approval by the Board of Directors, the retail sector system reform is being implemented, including organizational restructuring. The current private banking services, rights, and processes are unaffected.”

Considering the various actions in the retail sector over the past year, it’s clear that the Bank of Communications currently has at least two main strategic directions for retail business:

1. Streamlining organizational structure to reduce costs and improve efficiency: such as revoking the private banking license, and transforming the card center into a localized operation;

2. Strengthening business collaboration and deepening empowerment: such as the general manager of the private banking department also serving as head of wealth management, and integrating the digital operation center into the personal banking/consumer protection departments.

Resource Reorganization: Bank of Communications Plans to Revoke Scarce Private Banking License and Slim Down Card Center to Cut Costs

Regarding the streamlining of retail business organizations, at the 2026 Party Building and Business Work Conference, senior leaders of the bank explicitly emphasized the need to “implement the main construction and operational responsibilities of the head office and business units, strengthen resource integration, and develop特色 and differentiated growth based on local conditions.”

Taking the revocation of the private banking department license as an example, one of the most significant differences is whether the bank can operate as a licensed private banking institution: having a license allows independent operation as a legal entity, while without it, the private banking function operates as a subordinate department within the bank.

With this change, the private banking business of the Bank of Communications is expected to integrate marketing resources, technological investments, and human resources, avoiding duplication and waste. Meanwhile, operational costs of the former private banking license (including premises, systems, personnel, etc.) can be further transferred to high-value business segments.

The bank obtained its private banking license in 2012, and in 2013 established a dedicated private banking center. Over the past thirteen years, private banking has developed rapidly: client assets grew from 233.937 billion yuan at the end of 2013 to 1.39 trillion yuan by mid-2025; as of mid-2025, the number of private banking clients exceeded 100,000 for the first time, making it the sixth bank after ICBC, ABC, CCB, BOC, China Merchants Bank, and Ping An Bank to join the “100,000 Club.”

With such large client assets and numbers, will revoking the license have other impacts on the bank? Industry insiders say, “In fact, in most provinces, the private banking department is embedded within the personal banking department, often without a separate business unit. If clients inquire about related services, they need to contact private banking advisors at the branch.” This means that before and after the license revocation, there is little difference except the inability to establish an independent legal private banking entity.

In fact, the bank’s retail organization restructuring had already begun earlier in the credit card sector. Wind data shows that since 2025, the bank’s card center has closed over 50 regional branches across 30 provinces and cities including Beijing, Shanghai, Jiangsu, Guangdong, Hunan, Fujian, and Shandong, making it the bank with the most closures last year. In 2026, the pace of closures continues.

Vice President Zhou Wanfeng explained that this move is part of the bank’s reform. Previously, the credit card business was managed centrally by the credit card center in a vertical structure. While this model had advantages during the rapid growth phase, its limitations have become more apparent as the business matured.

After adjustment, the credit card business will shift from centralized direct management to localized branch operations, providing one-stop financial services to local customers. Additionally, credit card operations will be integrated into mobile retail services for unified management, Zhou Wanfeng said. Industry sources also note that the consolidation of the card center is a cost-cutting and efficiency-enhancing measure through streamlining offline layouts and organizational optimization.

Strengthening Business Collaboration: Wealth Management and Private Banking Led by the Same Person, Digital Empowerment Continues

In terms of enhancing retail business synergy, two clear directions have emerged: one is the strengthened collaboration between wealth management and private banking, and the other is the integration of digitalization with personal banking.

In December 2025, the bank’s management introduced the establishment of a new “Wealth Management Department” at the head office level. Later reports indicated that Jin Qi, general manager of the private banking department, also served as head of the wealth management department, achieving unified leadership over the two major business units. This broke down resource barriers under the previous licensed private banking model and facilitated faster integration and collaboration.

Three months later, the bank proposed revoking the private banking license again, marking a strategic return to integrated wealth management operations across the entire bank, emphasizing the private banking business’s role as a “pearl” and leader within wealth management.

Regarding digitalization and retail business synergy, digital empowerment is a key reform tool. Early last year, the bank established a Digital Operations Center, repeatedly emphasizing its connection with retail business. By the end of 2025, the digital center was merged into the Personal Financial Business Department and Consumer Rights Protection Department, forming a comprehensive digital operation system to fully unleash digital efficiency.

Chief Information Officer Qian Bin stated that establishing the Digital Operations Center is a major reform, creating a new management system focused on digital empowerment, direct operation, and centralized management of retail services.

After the department merger, a batch of versatile talents with both business experience and digital thinking, with a broad view from the head office and practical skills at branches, took key positions—such as Li Zhaoning, general manager of the bank’s Network Finance Department, also serving as general manager of the Personal Finance and Digital Economy Department; Du Jun, deputy general manager of the Personal Finance Department; Zou Yong, vice president of the Digital Operations Center; and Wang Zhiwei, deputy general manager of the Retail Credit Business Department.

Looking ahead, as these reforms continue to be implemented, the bank’s retail business is expected to further release growth potential. The synergy among branches in technology, personal banking, credit cards, retail lending, and wealth management will likely become closer, helping the bank steadily build a world-class institution with distinctive wealth management features and global competitiveness, injecting new momentum into industry transformation and development.