Wealth management refers to designing a comprehensive financial plan with customers as the center, and managing customers' assets, liabilities and liquidity by providing them with a series of financial services such as cash, credit, insurance and portfolio. Here I share some differences between wealth management business and wealth management business, hoping to help you!
What is wealth management?
Wealth management refers to designing a comprehensive financial plan with customers as the center, managing customers' assets, liabilities and liquidity by providing customers with a series of financial services such as cash, credit, insurance and portfolio, meeting customers' financial needs at different stages, and helping customers achieve the purpose of reducing crises and increasing wealth.
The core of wealth management is: customer-centered, rational distribution of assets and income, considering both the accumulation of wealth and the protection of wealth. Broadly speaking, it can include personal wealth management and rights asset management.
The core content of wealth management
At present, commercial banks have a variety of wealth management services and their brands have their own characteristics. However, most services are similar, and the main points are as follows:
First, account management services. Using the convenient short-term financing conditions of the bank and the advanced clearing system, we provide customers with services such as deposit and withdrawal, investment, loan, settlement and intelligent transfer. This is the most basic and simple content in wealth management services. For the bank's wealth management customers, these services are basically free of service charges.
Account management services are based on credit cards. At this stage, China Merchants Bank's "Golden Sunflower" financial management is also closely combined with the technical advantages of leading domestic peers, and is launched in cooperation with online banking, mobile banking, telephone banking and other service channels. Wealth card embodies the first element of wealth management business-capital concentration. The launch of wealth card not only promoted the progress of wealth management business, but also promoted the progress of credit card business such as consumption and overdraft.
Followed by trading services. This is a much-needed wealth management business for banks to attract customers at present, and it is also the strength of bank wealth management business. Including RMB wealth management business and foreign exchange wealth management business.
1) RMB wealth management refers to products with higher returns such as book-entry treasury bonds, policy bank financial bonds and central bank bills purchased by banks with large basic principal raised by retail investors. Because banks involve some businesses that ordinary investors cannot invest in, such as inter-bank bond market products, their expected rate of return is generally higher than that of traditional short-term savings deposits. Bank of China, Industrial and Commercial Bank of China and China Construction Bank have recently launched RMB wealth management products starting from 50,000 yuan, with different returns, but their interest rates are higher than those of savings deposits with corresponding maturities.
2) The huge foreign exchange trading platform and the trading qualification of financial derivatives are the preconditions for banks to design rich foreign exchange wealth management products. The essence of foreign exchange wealth management products is that banks use derivatives to help customers improve their return on assets. For commercial banks, on the one hand, foreign exchange financing business is conducive to retaining foreign exchange deposit customers in the fierce competition in the same industry; On the other hand, banks can make full use of existing technology, manpower and customer resources, and expand new profit space by developing the potential of foreign exchange wealth management business.
Third, wealth management consulting services. Relying on its own advantages in information and talents and extensive cooperation with financial institutions such as securities, insurance and funds, banks provide customers with a series of financial advisory services such as financial planning, investment advice and financial consultation. Wealth management consulting service is an advanced stage of wealth management. Its carrier is one-to-one, one-stop account manager service. It provides a unique wealth management plan tailored to customers' expected rate of return and their own crisis tolerance. The investment products designed for customers in the financial plan are mostly bank-specific financial products, such as savings, foreign exchange trading, and various national debt, funds and insurance products represented by banks.
Fourth, various preferential measures. This is an incidental service designed by banks to stabilize financial management, manage customer resources and win more customers. It can be regarded as a pre-meal snack and a dessert. These services are provided free of charge. As a bank's wealth management customer, you can generally give priority to all kinds of businesses, give priority to all kinds of financial products that are in short supply (such as reserving the amount of national debt), and enjoy many services such as business fee reduction and exemption. Most of the bank's wealth management customers belong to the middle and high income classes in society, and these preferential services and VIP treatment that show their identity are quite attractive to them.
Finally, the enterprise asset management business. At present, the enterprise asset management business of China's commercial banks is still in its infancy. The urgent task is to provide enterprises with daily financial supervision, fund allocation and other account management services, as well as consulting services such as mergers and acquisitions, bond and bill issuance, fund custody and project cost consultation.
The difference between wealth management business and general wealth management business
Wealth management is a new term in China's financial services industry in recent years. "Wealth management", as its name implies, is to manage the wealth of individuals and institutions, and can also be simply summarized as "financial management", but it is different from the general financial management business. The emergence of "wealth management" divides China's financial service industry into two different financial management business eras: one is the early financial management business era; The other is the era of mature wealth management business after progress and perfection-the era of wealth management.
Generally speaking, wealth management belongs to the early concept of wealth management. Its marketing model is product-centered, and financial institutions (especially commercial banks) cultivate the loyalty of high-quality customers through hierarchical and differentiated services, so as to better sell their products. The wealth management business is customer-centered, and financial institutions (commercial banks, fund companies, insurance companies, securities companies, trust companies, etc.). According to the financial needs of customers at different stages of life, design corresponding products and services to meet the wealth management needs of customers. These financial institutions become long-term wealth management consultants for customers. Financial management business is a mature financial management business.
There are three important differences between wealth management and general wealth management:
First, in essence, the wealth management business is customer-centered, aiming at designing a comprehensive financial plan for customers to meet their financial needs; Generally speaking, the wealth management business is product-centered, with the purpose of better selling its own wealth management products.
Secondly, from the perspective of the service providers, the wealth management business is a mature wealth management business, with many subjects, not limited to the banking industry, and all kinds of non-bank financial institutions are carrying out wealth management business. Generally speaking, wealth management business is mostly limited to traditional business and intermediary business provided by commercial banks.
Third, from the perspective of clients, wealth management business is not limited to personal wealth management, but also includes asset management of enterprises and institutions, with a wide range of clients; However, the general wealth management business is in the initial stage of its development. As a financial product launched by China's commercial banks, it means that the packaging of personal financial products of banks is mostly private customers. The three remarkable characteristics of wealth management, namely "customer-centered", "numerous customers" and "wider customer range", make it different from the general wealth management business and become a mature stage of wealth management services.