Small and medium-sized banks need to actively layout wealth management business
With the adjustment of economic structure and the reconstruction of regulatory environment, small and medium-sized banks need to attach great importance to wealth management business. First, the wealth of county residents has accumulated rapidly, the demand for wealth management is becoming stronger and stronger, the traditional business has been unable to meet the needs of customers, and customer disintermediation is becoming more and more serious. Second, the impact of the lack of capital, the narrowing of deposit and loan interest margin and the decline of customer stickiness faced by traditional businesses is increasing. Wealth management is an effective way to alleviate it. Third, the transformation of financial management business to wealth management is an inevitable trend. In particular, some small and medium-sized banks will fade out of the financial management market, and the development of wealth management is of great significance to maintain customers.
Difficulties and possibilities faced by small and medium-sized banks in developing wealth management
Wealth management business is a highly difficult systematic project, which requires a lot of resources. From the perspective of cost-effectiveness, we believe that small and medium-sized banks need to have sufficient customer scale to carry out wealth management and form synergy with other business sectors of the company. In addition, traditional problems such as lack of talents, unclear business positioning and insufficient strategic concentration are also difficult to make significant changes in the short term. Small and medium-sized banks have been rooted in the county for a long time, have closer contact with customers, better understand customers’ needs and provide higher quality products and services. Small and medium-sized banks in economically developed regions have a large number of wealthy customers and have the foundation to carry out wealth management business. At the same time, the management of small and medium-sized banks is more flat and the operation efficiency is higher, which is also the advantage of their development of wealth management. The good development trend of the wealth management business of West Bank, a small and medium-sized bank in the United States, demonstrates that small and medium-sized banks also have the conditions for the development of wealth management.
Exploration on the transformation path of wealth management of small and medium-sized banks
First, we should strengthen the direction of business development and maintain strategic concentration; Second, deepen geographical advantages and establish characteristic and differentiated development strategy; Third, deepen collaborative cooperation and establish win-win partnerships; Fourth, pay attention to talent training. At the business level, build long-term competitiveness from three aspects: customer system construction, product and service system design, business model and strategic positioning. First of all, we need to clarify the buyer’s business model centered on customers, and constantly innovate and improve the organizational structure and business model. Secondly, focus on local customers, establish a multiple customer segmentation system, and create fist products in the segmentation field. Thirdly, the construction of product system requires sustained and stable income growth. The core is to enhance the ability of asset allocation. It is suggested to focus on low-risk areas. At the same time, we should combine independent products with open products.
Investment advice
The significance of wealth management for small and medium-sized banks is not only to improve profitability, but also to help economic transformation and achieve common prosperity. It is suggested to pay attention to small and medium-sized banks in economically developed regions with good business ability, Bank Of Ningbo Co.Ltd(002142) , Jiangsu Zhangjiagang Rural Commercial Bank Co.Ltd(002839) , Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) , Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) and Wuxi Rural Commercial Bank Co.Ltd(600908) .
Risk tips
The lower than expected macro-economy will affect the growth of residents’ wealth, and the capital market policy is lower than expected.
