The 15th anniversary of the Chinese private banking industry: the needs of high net worth groups to turn, test comprehensive operation internal skills

21st Century Business Herald reporter Zhou Yanyan Shanghai report

As an imported "private bank", it has been continuously exhibited in China for 15 years. "The retailers get the world, and the private banks get retail." This sentence became more and more popular in the banking industry.

The growth of private banks has become a bright color in the bank's performance report. According to data released by the China Banking Association in October 2021, the asset management scale of Chinese private banks (AUM) increased from 14.13 trillion yuan in 2019 to 17.26 trillion yuan in 2019, with a growth rate of 22.09% Essence The number of private bank customers increased from 10.314 million in 2019 to 1.2534 million in 2020, with a growth rate of 21.53%.

Many listed banks have disclosed their private banking business data in the semi -annual report of this year, which can be glimpsed to see the development of the Chinese private banking industry.

In terms of scale, the "King of Retail" Merchants Bank once again "defended". In the first half of the year, the scale of private banks reached 3.65 trillion yuan, an increase of 253.9 billion yuan from the end of last year, an increase of 7.48%. In addition to the China Merchants Bank, ICBC, Bank of China, Construction Bank, and Agricultural Bank of China are located at 2 trillion clubs.

As of the end of June this year, the scale of ICBC private banks reached 2.47 trillion, an increase of 145.7 billion yuan from the end of last year, an increase of about 6.27%; Bank of China was 2.33 trillion, an increase of 7.87%from the end of last year; the scale of 2.18 trillion Construction Bank increased, an increase of an increase of 2.18 trillion There are also 7.74%. At the end of June this year, Agricultural Bank of China reached 206.24 billion yuan, an increase of 215.9 billion yuan from 1846.5 billion yuan at the end of last year, an increase of 11.69%; new member.

In the second echelon, the scale of Ping An Bank's private bank reached 1.55 trillion, an increase of 10.5%; the Bank of Communications was approaching trillion since the end of last year. %.

In the third echelon, the scale of private banks of Industrial Bank, Minsheng Bank, and Everbright Bank all ranging from 3%-7%from the end of the previous year.

The private banking business continues to go against the trend, but it is also facing the challenges brought about by the customer concept and needs update iteration. It tests the internal skills of the bank's comprehensive operation.

Client philosophy and needs update iteration

"The financial management concept of high net worth people in China is changing." A joint -stock bank's private bank executive told reporters that compared with ten or five years ago, private bank customers pay more attention to the concept of balanced allocation in asset allocation. In the past, the old concept was that high net worth customers seemed to have higher risk preferences and had higher requirements for product yields. Especially in the past two years, the transformation of net worth of wealth management products, plus frequent fluctuations in domestic and foreign markets, and high net worth customers have a great demand for absolutely returned products, and are inclined to "stabilize". Their typical asset allocation model is: 80%of the absolute income products of asset allocation, which requires low volatility to keep capital; 20%of high -risk and high -return products such as equity assets in order to obtain excess returns. The significant characteristics are that they will not go to the same type of assets of "all in", but will seek a multi -asset class and a weak association between different asset categories. pad".

The requirements of high -net -worth individuals on private banking business are also constantly iteration. The former high -net -worth individuals only regarded private banks as sellers of a product and providers of some icing -value -added services, requiring individual or family wealth to increase by 20%, 30%or even double. The current demand is more suitable and more comprehensive. For example, tax planning, asset preservation and isolation, and even customer companies need IPOs or mergers and acquisitions. I hope that private banks can also assume the role of legal and tax consultants. There are also some customers who have educational needs, and private banks need to provide online+offline study abroad plans, children's education, science science studies, and provide children's summer internship opportunities.

Chen Boxian, the chief wealth adviser of the private banking department of the Bank of Communications, wrote in the "Family Enterprise Magazine" that the understanding of the private banking service of the private banking service was the VIP room, the pick -up service of the airport, the famous doctor's appointment and the green channel, which is the magnificent magnificence The service outlets are the customer manager selected by thousands of selected ... In their eyes, the value -added service of private banks is all of the private banking services; and some customers believe that the products bought in private banks must be bought with ordinary customers. Different, private banks will have "nuclear weapons", PE and VCs with stable earnings and high yields ... In fact, these are misunderstandings about private banking services.

He believes that now private banks are launching value -added services to attract customers. The next step is who is more professional, who can build a professional team and establish a mechanism. Customer planning long -term future. With the continuous development of the industry, customers are constantly generating new demand, including family inheritance, corporate governance, and charity needs.

Test bank comprehensive operation capabilities

From a single sales to a comprehensive service of asset allocation, many banks have started to act. For example, Ping An Private Bank includes the customer's wealth health index and incorporates the customer service operation assessment of different teams in the front line. The China Merchants Bank also recently stated that the changes in the needs of private bank customers have changed from the original focus on providing retail services to high net worth customers to providing more diverse "private enterprise" comprehensive services to private customers and behind them. "Now the demand for high net worth groups is actually more high -level, no longer focusing on products, but more flexible. The private banking department needs to be a physical carrier for service to provide a service. The role of 'piercing needle lead'. "A middle manager of Bank of East China told reporters that this test is not only the personal ability of the financial management of private banks to allocate assets, or the ability of the private banking department as a overall output service, but also the ability to export services, but also, but also, it is also the ability to export services, but also the ability to export services. Test the comprehensive operation capabilities of the entire bank.

For banks, the same customer can actually disassemble as customers of multiple departments. For example, one company is not only a loan customer for the public department. It can be a bank savings or wealth management customers. At the same time, the bank's mortgage or consumer loan is also used. Employees and bosses are banks' credit card customers, and company executives also need banks to provide private banking services. Then whether the bank's retail and the public sector are serving this company, can these "thousands of pins and thousands of lines" be connected to the same bank in the business chain, testing from the head office to the branch institution. The ability of the business personnel and the formulation of internal KPI.

"If the team building cannot keep up with the pace of business expansion, or KPI formulates that the salesperson can not promote the salesperson to recommend a variety of products and services to customers, and the construction of a higher -dimensional private bank will become a paper talk." Essence

Some banks also began to seek linkage between the inner sector. For example, Wang Ya, general manager of the Private Banking Center of the Bank of China, recently told a reporter from the 21st Century Business Herald that the bank has established a common public and private linkage mechanism for private banks. BOC Securities, BOC Financial Management, BOC International, BOC Samsung Life, etc., including flexible working groups, form a professional system to support entrepreneurial customer service, and truly realize the service experience of "a little access and group response" for customers.

Recently, private bank licenses have become a hot topic. On August 11, the Shanghai Banking Regulatory Bureau issued a approval and agreed to the opening of Hengfeng Bank's private banking department. It is worth noting that the private banking business of most banks in my country adopts a large retail model. Before Hengfeng, there are only 4 commercial banks operating private banking business, namely ICBC, Agricultural Bank, Bank of Communications and Industrial Bank Essence Before the establishment of the private banking department of the Bank of China in 2021, for nearly ten years, the CBRC did not issue private banking licenses. ICBC, Agricultural Bank, and Bank of Communications private banking department opened in 2008, 2010, and 2012.

After licensed operations, the private banking business is no longer just a sales channel in large bank retail, but pays more attention to the development of comprehensive service capabilities, which can be expected in the future.

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