Finance is for the people and benefits are taken into account. In recent years, China Construction Bank Corporation(601939) on the road of exploring new financial paradigm, has continuously raised the temperature of financial services. Entering the field of big wealth management, we also strive to build the “CCB coordinate” of wealth management based on inclusive nature.
With the concept of “housing without speculation” becoming more and more popular, the wealth of Chinese residents will gradually shift from real estate assets to financial assets. In the future, the proportion and scale of financial assets in residents’ wealth are expected to maintain rapid growth. The market with unlimited potential is the basic sector for many banks to plan the transformation of wealth management in recent years. Joint stock banks have taken the lead in the great reform of this industry, while large state-owned banks that act with a steady tone choose to plan before moving.
On March 29, China Construction Bank Corporation(601939) released the business performance in 2021. Tian Guoli, chairman of CCB, proposed in his speech in the annual report that the big wealth management of CCB was successfully broken. He said that last year, CCB adhered to the perspective of big wealth, continuously widened service boundaries, upgraded service efficiency, accompanied and helped more customers plan and grow wealth, and strengthened the development of consumer fast loan and credit card.
it is reported that CCB included building a big wealth management system in the group’s key development plan during the 14th Five Year Plan period in the middle of last year, and preliminary results have been achieved through water testing and exploration in recent years. The data show that in 2021, on the basis of maintaining the first of the four new lines of deposits per day, the balance of investment and wealth management asset management scale (AUM) of CCB exceeded 15 trillion yuan at the time point, and the new amount reached 1.4 trillion at the time point. The new amount of investment and wealth management AUM was four times that of the same period last year; 37 branches achieved full capital, deposit, investment and wealth management growth for the first time. CCB’s financial management scale is nearly 2.2 trillion yuan, and the assets of private bank customers exceed 2 trillion yuan
As a large state-owned bank, CCB entered the wealth management market not only to seize business opportunities, but to practice the exploration of new financial ideas and make wealth management serve the majority rather than the minority. In Tian Guoli’s view, the new finance has no fixed paradigm and is far away, but it is not mysterious. It is around the people and in the details. We should adhere to the “people first”, continue to pay attention to long-term, systematic and lasting issues in the process of economic and social development, make the allocation of financial resources more fair and just, and provide financial solutions to meet people’s aspirations for a better life.
As Tian Guoli said at the performance Conference on March 30, the ideal of CCB in the future is to strive to serve the society, serve the broad masses of the people, serve more small, medium and micro enterprises, reconstruct the logic of financial products and services with solid financial science and technology capabilities, and let more people enjoy financial services fairly.
seeking a new situation: building a big wealth management system
“CCB will hand over a brilliant answer to the majority of shareholders and all sectors of society.” This is Tian Guoli’s evaluation of CCB’s operating performance in 2021 in his annual report speech.
By the end of 2021, the total assets of CCB group had exceeded 30 trillion yuan, an increase of 7.54% over the previous year; The net profit was 303928 billion yuan, an increase of 11.09% over the previous year.
It is worth mentioning that the profit contribution of personal banking business further increased, accounting for 56.74%. The cumulative number of credit cards issued reached 147 million, with a consumption transaction volume of 3.04 trillion, ranking first in the industry in terms of total customers, loan scale, installment transaction volume, installment loan, installment income and other indicators. The number of debit cards issued exceeded 1.256 billion, and the consumption transaction volume reached 25.92 trillion, an increase of 10.39% over the previous year.
In recent years, CCB has made great efforts to implement new financial actions, which originated from the original intention of “solving social pain points with financial gentle scalpel” put forward by CCB in 2018. In 2019, CCB proposed to enable b-end, break through C-end and connect g-end, opening the “second development curve” of the whole bank. CCB, which is not lazy in actively seeking change, announced to build a big wealth management system at this time, which stems from the accumulated wealth after years of exploration.
What is “big” wealth management? Behind it is the layout of CCB to build a horizontal and vertical wealth management value chain. Li Yun, vice president of CCB, said at the performance conference that in the past year, CCB has continued to promote the “great change” of wealth management strategy with “small cuts” such as wealth season, and outlined the framework of big wealth management. Introduce “new” production mechanism, focus on exploring “one horizontal and one vertical” large wealth management system, and speed up the opening of the horizontal value chain of “wealth management asset management investment bank” and the vertical transmission chain of “investment research investment consultant customer service”. The coordinated development of deposit, investment and financial management has been preliminarily realized.
Behind the leap in wealth management performance is the professional ability and digital transformation accumulated by CCB over the years. Therefore, when CCB proposes to enter the big wealth management system, it seems to be natural. However, when China’s large financial institutions compete for the wealth management market, where does the “magic weapon” of CCB come from?
All this should start with the over 700 million stock customers of CCB and the early layout of digitization.
subtle: let high-quality financial services reach the general public
By the end of 2021, CCB had 726 million individual customers, that is, one in two Chinese people was enjoying CCB services. The huge customer base is the key flow for CCB to build a large wealth management system, and it is also an important premise for CCB to put forward the development concept of inclusive wealth management.
Over the past few decades, Chinese residents’ personal wealth has increased rapidly and their awareness of personal investment has increased significantly, which has brought a once-in-a-lifetime opportunity for the development of China’s wealth management business.
however, if wealth management business is only aimed at minority groups such as high net worth customers, it will not only bind the financial industry, but also violate the development concept of meeting the people’s yearning for a better life. In the context of promoting common prosperity, wealth management for long tail customers needs more attention
The report released by the Academy of social sciences last year also put forward the concept of “inclusive wealth management” for the first time. The report pointed out that the inclusive wealth management market is mainly for mass customers, and the products have the characteristics of low cost, easy access, high transparency, standardization and reasonable risk. By the end of 2020, China’s public bank financing and public funds accounted for only 4.4% and 2.9% of residents’ wealth. This means that the inclusive wealth management market in China is still in the early stage of development and has broad growth potential and space.
To the vast and subtle. Among the 700 million individual customers of CCB, mass customers with total assets under retail management (AUM) of less than 200000 accounted for 96%. Under the main tone of common prosperity, mass customers will become growth potential points and continue to release the demand for new wealth.
For CCB, mass customers will also become the main battlefield for inclusive operation and upward promotion of wealth management. Let high-quality financial services reach the general public, which is not only the financial responsibility of CCB as a large state-owned bank, but also the significant advantage of CCB different from other banks, especially joint-stock banks.
add wings: digitally improve the efficiency of financial drip irrigation
If the base of more than 700 million individual customers is the “fuel” for CCB to deeply cultivate the wealth management system, then digital operation is like an engine. Relying on CCB as a professional helmsman, we can make the great wealth management strategy go steady and far.
In order to spread the “seed” of wealth management in a wider field and make more Lbx Pharmacy Chain Joint Stock Company(603883) pockets “bulge”, in recent years, China Construction Bank Corporation(601939) with the help of financial science and technology advantages and collectivized professional ability, has promoted the “one game” development of wealth management throughout the bank, improved the group’s cooperative combat ability, improved the digital operation ability, and continuously pushed the focus of financial services down.
As a banking group with full licenses, CCB group has comprehensive licenses from fund, insurance, futures, financial management to investment, trust and pension, and relies on the high-quality investment resources moat formed by deep cultivation of government and enterprise business for many years. CCB’s wealth management business can form an effective C-end and b-end integration, collect more social funds into the real economy, and form a positive feedback to promote high-quality economic development and share the dividends of economic development with residents’ wealth. This is also the unique advantage of CCB’s “fierce battle” in China’s wealth management industry.
The continuous building of digital operation capability has added intelligent “wings” to CCB’s wealth management.
As one of the largest state-owned banks, CCB took the whole bank’s efforts to build a “new generation core system” that took six years to go online in 2017, laying a solid foundation for CCB to lead the digital transformation in the banking industry and providing an effective solution for exploring the intensive operation of hundreds of millions of mass customers.
faced with more than 700 million individual customers, relying on traditional outlets to serve large-scale customer groups, faced difficulties in both depth and breadth, and even some customers were “lost” for a long time
In recent years, CCB has continued to explore a hierarchical, cluster and hierarchical customer service system. Taking layered service as an example, based on customer AUM stratification, establish the business model of franchise of value customers (more than AUM 2 million) and direct operation of long tail customers.
Among them, the franchise team has a clear professional focus on positioning, digitally rearranging the team, creating a customer manager workbench and cloud studio, focusing on wealth management and creating a deep and efficient service model; The direct sales team took data as the key production factor, used financial technology to promote the evolution and upgrading of customer business mode, and moved the business responsibility of long tail customers from the grass-roots network to the branch headquarters, which greatly widened the radius of account management.
In the past, an ordinary customer manager of a network may have to manage thousands of customers. For the customer manager, these customers are more like a string of numbers lying in the system. If you want to provide personalized financial services, you are “willing but not able”.
Now, relying on digital weapons can greatly expand the service radius, break the shaft of departmental banks and meet the comprehensive service needs of individual customers. In this mode, identify customer needs through big data mining and realize the output of unified business opportunity strategy, so that the customer manager can accurately grasp the key needs of customers in fanhao’s customer information. A customer manager needs less than 60 minutes to push more than 3000 personalized messages and have more than 10000 in-depth conversations with customers every day.
It can be seen that digitization makes CCB’s wealth management system more “intelligent”, which is directly reflected in the great improvement of business efficiency. The number of mass customers managed by a direct manager can be nearly 20000, and the operating efficiency is 60 times higher than that of the outlet customer manager.
More importantly, with the help of digital empowerment, the direct marketing model not only solves the pain points and difficulties of the traditional business mode of “customers can not be found, the demand is uncertain, and the value is ignored”, but also successfully expands the service object of individual customers from the original 20% of medium and high-end customers to the full number of customers, enables the advanced platform tools to empower the grass-roots front line, and enables the accurate drip irrigation of financial living water to meet the needs of inclusive wealth management.
try the edge: the big wealth management system is getting better
Since last year, CCB has promoted major changes with a small incision, continued to make a large amount of funds, and realized the coordinated growth of deposits, investment and wealth management; Through financial season, wealth season and other activities, the dilemma between deposit and investment and financial management has been preliminarily solved, and the “playing method” of wealth management with “inclusive, sharing, professionalism and wisdom” as the core has been explored:
The first key word is Pratt & Whitney. Fully release the multiplier effect of “business + technology” and “people + digitization”, establish an agile team and flexible organization integrating business, technology and data, create a universal and differentiated wealth management service model, and realize the full coverage of customer wealth management.
The second keyword is sharing. Change from individual operation to group collaborative operation, smooth the connection between capital end and financing end, product supply end and customer demand end, form a value cycle chain with close coordination between asset management and wealth management, investment banking, trading business and custody business, and realize the “Four Integration”, namely, b-end and C-end integration, parent subsidiary integration, channel integration and business technology integration.
The third key word is specialty. Gather the professional investment and research strength of the whole group, build a professional wealth management team with hierarchical classification, professional focus, joint research and sharing, run through the process of “investment and Research – Investment Consultant – customer service”, change from single product sales to investment consultant mode focusing on asset allocation, and create long-term value for customers with professional ability.
The fourth key word is wisdom. Based on the whole life cycle of customers, focusing on the three major needs of customers’ mobility, profitability and supportability, we use artificial intelligence, biometrics, big data and other technologies to present complex wealth management services to customers in the simplest way, so as to create a digital and intelligent wealth management platform.
In addition, in 2021, CCB comprehensively upgraded the brand of “CCB longfu”, as a unified brand of wealth management for individual customers, and took “building wealth ideal with you” as the brand slogan to convey CCB’s wealth management service concept to the public: give full play to CCB’s corporate business and collectivization advantages, connect with national construction and enterprise high-quality projects, and closely connect residents’ wealth management with social investment and financing, Constantly create value for the people’s wealth ideals. CCB believes that high-quality financial services are not the patent of a few people, and everyone can be a participant and beneficiary of wealth management.
By accumulating momentum at the above four driving points, CCB performed well in several key performance indicators of wealth management last year:
1. In 2021, the financial assets of China Construction Bank Corporation(601939) individual customers increased by 1.4 trillion, ranking first among the six major banks.
2. The quality of customers has been continuously optimized. The number of new customers with au5.5 million is 2.17 times of the balance; AUM accounts for 2.76 times of the newly added balance of more than 200000 customers, and the time point balance of financial assets of individual customers has continuously exceeded the threshold of 14 or 15 trillion yuan.
3. The integration of parent and subsidiary companies has also achieved remarkable results. By the end of 2021, the total scale of asset management allocation of stock wealth management and related subsidiaries of CCB had exceeded 6 trillion yuan (excluding foreign currency assets). Among them, the scale of CCB financial management, CCB trust and CCB fund has exceeded trillion, with a total scale of nearly 500 million, constituting the main body of the asset management sector.
to the future: reconstructing the “three relationships” based on chronism
Building a big wealth management system is a comprehensive reconstruction of production relations. It is a highly complex, professional and long-term systematic project. From the development process of foreign peers, the gradual construction of the underlying ability of wealth management will take decades. For Chinese commercial banks, they should also adhere to long-term ism. Behind the long-term doctrine is the need to open up the artery of development with great ideological emancipation.
The relevant person in charge of CCB said that to build a big wealth management system, we need to achieve “four changes”:
First, change the perspective of operation, return to the first nature of operation, and change from operating the “bank balance sheet” to operating the “customer balance sheet”.
Second, change the business model, build the “capital light” profit model and service capacity of commercial banks with wealth management business, and realize the momentum and integration of the first curve and the second curve.
The third is the transformation of business logic, from medium and high-end customers to full-scale customers, so as to realize the inclusive wealth management service of “eight out of two and two out of eight”.
The fourth is the change of service content, from “capital provider” to “service provider”, change relationship marketing into professional victory, and solve the phenomenon of selling products, chasing short-term performance and excessive marketing.
Looking ahead, it is understood that CCB will continue to promote factor restructuring and process reengineering, and continue to promote the reconstruction of “three relationships” around the four strategic axes of “inclusive, sharing, professionalism and wisdom”:
First, reconstruct the relationship between customers and organizations. We will continue to deepen the business philosophy of “taking customers as the center and creating value for customers”, comprehensively upgrade the operation and management system of individual customers with stratification, grouping and grading as the core, expand the service radius with digital operation, and drive all customers to participate in and share the dividends of national innovation and development.
The second is to reconstruct the organizational cooperation relationship. Integrate the strategic consensus and joint efforts of g-end (government customer), b-end (enterprise customer) and C-end (individual customer), various business lines and subsidiaries, systematically promote the extension and upgrading of wealth management business logic, organizational structure, operation process and supporting mechanism, and smooth the closed loop of great wealth management.
Third, reconstruct the relationship between organization and ecology. Establish the ecological concept of “open sharing and digital interconnection”, take customer demand satisfaction as the core positioning, integrate and coordinate the contacts of internal channels such as mobile banking, CCB life, physical outlets and remote smart banking, and connect with the ecology of Housing leasing, rural revitalization, smart government and digital currency, build an open platform, improve the product supply and demand system, and open up the whole process and chain of big wealth management from the demand side to the supply side.
Tian Guoli proposed at the performance conference that finance needs to be reconstructed with new logic in the information age, especially after the global financial crisis in 2008. That is, how finance can better serve the society rather than become a social problem. Under the traditional financial theory, banks pay attention to serving 20% of the top enterprises in order to obtain 80% benefits, which is a very smart calculation. Under the new development concept, if banks excessively pursue profits, they will abandon 80% of their customers. The core of the new financial concept is to take the people as the center, which is a new financial thinking mode under the new development concept.
CCB is exploring to follow the logic of “serving the majority rather than the minority”, improve the management soil of traditional wealth management with new financial actions, and create the “CCB coordinate” of inclusive wealth management.
