How to become a professional “wealth management consultant” for clients? How does the private banking business break the role of “setters” or “shelves”?
The market is turbulent, the policy has been adjusted, but the individual and the familyFinancial managementAnd investment demand is rigid. With the fluctuation of the market and the rotation of the industry, the wealth of the whole society is growing and the configuration is constantly changing.
Shanghai BankVice President Shi Hongmin said in an exclusive interview with the 21st Century Business Herald reporter that in the past year, due to various internal and external factors, investors’ risk appetite has changed, and funds have been transferred from various non-bank institutions.bankThe trend of reflow.
“The growth of high-end customers in the bank is very fast.” Shi Hongmin believes that from the perspective of industry trends, this is the starting point for the private banking business of banking institutions. Prior to this, private banking experienced several ups and downs. The current changes are not only factors of the external market, but also factors that the banks themselves seek to develop.
In the past years of development, domestic banks have accumulated some experience in the process of exploring private banking. In Shi Hongmin's view, the current mode of developing private banking in domestic banks has its own characteristics, but the general direction is gradually taking shape. Starting from customer segmentation, refining the common needs of middle and high-end customers and integrating the internal resources of banks to meet These demands have led to the formation of a complete system and the gradual extension into a brand.
Regarding the differences in the development of domestic and foreign private banking business, Shi Hongmin said that because of the natural differences in environmental development, cultural traditions, market endowments and customer perceptions, it is difficult to compare them easily. For the time being, domestic customer demand has begun to show diversity and stage characteristics, which will become an inexhaustible driving force for the development of domestic private banking business.
Mid-to-high-end customer group return trend
"21st Century": In the past, there was a saying in the industry that 90% of the banks' high-end customers were outside the bank, and only 10% were in the banking system. Is this still the case? What new trends have emerged since last year?
Shi Hongmin: The changes in the market in the past two years have led to changes in customer investment channels and the return of risk appetite. After investors have suffered setbacks in some areas of investment, a clear trend is that mid- to high-end customers and their funds are returning to the banking system.
As far as Shanghai Bank is concerned, the number of wealth management customers increased by 30.6% year-on-year in 2018, and wealth customer assets increased by 27.8% year-on-year. Such growth rate is not only rare in recent years, but also leading in the industry.
"21st Century": The reason for this reflow, what do you think?
Shi Hongmin: The current changes are not only factors of the external market, but also factors that the banks themselves seek to develop. There are three external factors: First, from the perspective of investment, after the macro economy enters the new normal, the market environment undergoes major changes, asset shortages intensify, asset yields have downward pressure, and product risk management tests the professional capabilities of institutions; From the customer's point of view, investors gradually return to rationality after a series of market changes, risk awareness is gradually strengthened, and more emphasis is placed on long-term and stable investment. Third, from the policy perspective, the financial service system is becoming more and more perfect, and the regulatory system is perfect. Strictly, banks are required to perform investor education functions, and the protection of consumer rights is included in key tasks.
Such an external environment is good for financial institutions such as Shanghai Bank, which are known for their health and well-being. Especially at the mid-to-high-end customer level, the organization's professionalism, robustness, and sense of responsibility are more important, and the brand is more sticky.
From the perspective of the Bank of Shanghai itself, it is more important to cultivate the "internal strength" and to build its own service system. The private banking business must break the role of “setters” or “shelves”, and truly become a “wealth management consultant” from the customer perspective through in-depth consumer insights and resource integration capabilities based on its own professional judgment. . We will foster a long-term and trustworthy relationship with our customers, establish a service reputation, and form a virtuous circle, so that the private banking business can develop sustainably and healthily.
"Banking Department" private line new mode
"21st Century": What are the main models of the bank's private banking business?
Shi Hongmin: There are several types of private banking business models in various banks: First, as a sub-brand of the bank, a licensee that operates independently and independently, and separates customers; the second is the division system, that is, In the banking system, it is relatively independent and full-featured. The third is as an independent business department. There are different departments behind it, and at the same time, tiered services are provided to customers. The private banking business of Shanghai Bank belongs to the third mode.
The choice of mode depends on the positioning of each bank's private banking business. As the top of the retail business, we did not use the private bank profit contribution as the sole criterion for evaluation in isolation, but contributed the value of private banking to other business segments of the bank, such as the support of the company's business, retail business and bank brand. And lead the forces into the overall assessment system.
"21st Century": How does the Shanghai Bank position and adjust the private banking business?
Shi Hongmin: The Shanghai Bank's phased positioning and goals are very clear. In the three-year plan of 2018-2020, the strategic positioning of the retail business has been clearly defined, while the private banking and wealth management business is one of the three core pillars of the retail business. Such positioning, on the one hand, based on the mid- to high-end business including private banking customers will rely on the resources of the whole bank to seek development, on the other hand, the private banking business will also help the development of other sectors.
This strategic positioning has also enabled us to seize the market window in this round of market changes. Through differentiated positioning, we will focus on more than 1 million wealth management customers, and deploy exclusive teams, products and services to actively respond to them. Customer needs, helping customers to build a sense of belonging, effectively led a considerable part of wealth customers to return to the bank.
The positioning of wealth management and private banking is based on the unified thinking of Shanghai Bank on the unified thinking of large retail. This year, the external consulting company was specially invited to diagnose and plan the retail business system, and issued a large retail stratification management system. The overall plan, and specific recommendations for the design of the mid-to-high-end customer management system.
With reference to professional consulting results and retail line management practices, the management of Shanghai Bank recently reorganized the functions within the large retail sector. Among them, the wealth management business functions of the whole bank were concentrated in the wealth management and private banking department of the head office, relying on overall management and systemization to promote the wealth management business as the focus of development.
"21st Century": How can banks build their private banking business?
Shi Hongmin: Private banking customers have their own rules. Banks have been exploring since the beginning, and now there is some consensus. The basic logic is to first segment customers and secondly to refine common demand for segmented private banking customers. Then, integrate the resources in the line to serve these needs, and once again sell the right products to the right people through good communication sales, gradually form a long-term and stable system, and extend to establish a clear reputation in the market.
Capacity building is to be systematic. We generalize the systemization to “3+1”, including the three dimensions of customers, products and services at the business level and the value evaluation latitude at the assessment level.
The first is the customer management system. According to the high-end customer structure of Shanghai Bank, we will use high-quality pension customers, entrepreneur customers and urban core middle-class as the core target group of high-end retail business, and explore accurate customers around the hierarchical classification.
Secondly, product management systemization, especially in the current stage of development, should pay special attention to risk management. While building a full-scale product system, pay attention to the establishment of the standardization process in the whole process before and after the whole period, and unify the concept of asset allocation and investment. The values of “safe, sound and responsible” enhance professional competence.
The third is the systematic cultivation of the service team, establishing wealth management management teams at all levels, paying attention to the professional service capabilities of the account managers, optimizing the sense of compliance, effectively achieving the customer's perspective, and assigning the right products to the right people.
In addition to the above three business systems, the internal benefit evaluation system is also crucial. How to evaluate the business investment and the benefits generated to ensure that it is valued according to the bank's strategy is also an important part of the system construction.
Domestic and foreign operational differences
"21st Century": The concept of private banking originates from overseas. What are the differences between domestic and foreign banks' private banking business and foreign countries?
Shi Hongmin: There are big differences in environmental development, cultural traditions, market endowments, customer perceptions, etc. between domestic and overseas, so it is difficult to compare the two easily.
Since the rise of the domestic private banking business in the 1990s, it has experienced many years of exploration and practice, accompanied by an increase in the number of residents’ wealth.Long andChanges in the life stage, in addition to the higher quality investment allocation services that customers expect in the wealth management field, demand begins to show diversity and stage characteristics. For example, based on cross-border financial claims arising from overseas education, medical care, travel and other services, based on the planning appeal of wealth protection and inheritance, even at this stage, more and more customers express a kind of transcendence of wealth, which we call “wealth”. "The desire", such as the demand for value-added services, the needs of communication platforms, the needs of human care, and so on. Last year, Shanghai Bank also responded to customers' demands and choices and launched a series of “Charity Investment” solutions. It is committed to linking customers' personal values with social concerns and has achieved many responses and concerns. Currently, the first individual in the domestic banking industry.fundAs of now, the largest charitable trust of the largest amount of funds has been completed by Shanghai Bank.
Although the development of private banking business at home and abroad is not comparable, the establishment of a benign relationship between domestic banks and customers will become a trend through the construction of a service system. At the same time, the rapid economic development, the continuous growth of wealth, and the bank's continuous endogenous innovation requirements will also become the inexhaustible driving force for the development of domestic private banking business. This is an era of change and the best time for the development of wealth management business.
(Article source: 21st Century Business Herald)