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Building a wealth management system to see how the Postal Savings Bank digs deep into the new retail rich mine

Building a wealth management system to see how the Postal Savings Bank digs deep into the new retail “rich mine”
How will a regular large bank with nearly 40,000 business outlets and over 600 million customers continue to dig deep into the “rich mine” of retail resources?China Postal Savings Bank (601658.SH, 1658.HK, hereinafter referred to as the “Postal Bank”) is the owner of this “rich mine”.Recently, the Postal Savings Bank has “baked out” its first performance report after landing on the A-share market, and held a 2019 performance press conference to present its new retail transformation and upgrading and future development strategies to the public.In fact, it is thanks to the breakthrough and progress of the “new retail” transformation that the Postal Savings Bank’s operating performance has reached a new level.The annual report shows that the Postal Savings Bank achieved a net profit of 610 in 2019.3.6 billion, an increase of 16.52%; net interest margin (NIS) and net interest margin (NIM) are 2 respectively.45% and 2.50%, continue to maintain the industry leading level; ROE and ROA reached 13, respectively.1% and 0.62%, previously increased by 79 BP and 5 BP.Facing the “rich mine” of 600 million customers, how to dig deep into customer value?The Postal Savings Bank said that it will expand and actively promote the construction of a wealth management system, strengthen the maintenance of mid- to high-end customers, and enhance the value of mid- to high-end customers.At the same time, it will improve the precision marketing and comprehensive service capabilities of mass customers, efficiently serve mass customers with growth potential, and tap the growth potential of customer assets.China Post Wealth Management Co., Ltd. was established to build a wealth management system. On December 5, 2019, China Post Wealth Management Co., Ltd., a wholly-owned subsidiary of Postal Savings Bank of China (hereinafter referred to as “China Post Wealth Management”), opened the opening and new product launch conference.The opening of China Post’s wealth management means that all the state-owned “six major banks” wealth management subsidiaries will be fully operational.At the 2019 performance press conference, the Postal Savings Bank introduced that the opening of China Post Wealth Management began, actively planning a development strategy, adhering to a market-oriented approach, and taking advantage of the channel advantages and customer advantages of the parent bank to help the motherThe Bank promoted the transformation and upgrading of retail strategy and focused on building a wealth management system.In terms of product system, China Post Financial Management has initially initialized the construction of a “Puhuihui + Wealth + Pension” product system. Since its opening, it has completed currency types, pensions, linked asset rotation index strategies, and “Fixed Income +” series.Product launch, next, to speed up the introduction of hybrid products, FOF strategy products, anti-aging theme products.It is understood that in the future, wealth management subsidiaries will cooperate with the parent bank to do a good job of serving the real economy, and adhere to the development model of “commercial bank + investment bank + asset management” to provide innovative enterprises, asset-light enterprises, and leverage reduction enterprisesFull product strategy, three-dimensional financial support, and at the same time, we must actively participate in capital market investment and contribute to the development of the real economy.The new report on actively merging asset management and orderly promoting the transformation of personal wealth management business shows that in 2019, the Postal Savings Bank actively promotes the construction of a wealth management system, accelerating the implementation of customer management, marketing team building, and product system optimization.As of the end of 2019, the Postal Savings Bank VIP customers were 3096.420,000 households, an increase of 10 from the end of last year.86%; Wealth customers 247.130,000 households, an increase of 20 from the end of last year.71%.With regard to the optimization of the product system of wealth management, the Postal Savings Bank has continuously expanded its wide service area, expanded product supply, launched a collective trust business, increased the issuance of asset management plans, strengthened product risk prevention and control, and met customers’ diversified investment needs.At the same time, non-financial value-added services such as health, travel and education were launched to continuously optimize the customer experience.In terms of personal finance, the annual report disclosed that as of the end of 2019, the balance of personal wealth management of the Postal Savings Bank was 7,827.70 ppm, an eight-year increase of 8.20%.It is said that the Postal Savings Bank introduced that in 2019, the Postal Savings Bank actively merged with the new regulations on asset management and other regulatory provisions to promote the orderly transformation of personal wealth management business.Improve the ability to sell net worth products, continuously enrich the featured theme product system, meet the financial needs of different customers, strengthen investor education, and improve customer risk identification capabilities.At the same time, relying on its unique “self-operated + agency” operating model, and a large number of business outlets, a wide-ranging sales network, the Postal Savings Bank agent sells a variety of financial products to meet the smaller financial needs of individual customers.In 2019, the first-level agency sales of financial products of the Postal Savings Bank achieved rapid growth.The agency insurance has established a multi-type product system to fully meet the customer’s insurance needs, and the new single premium is 3392.2.9 billion yuan, the agency pays 586 new policy premiums.$ 4.5 billion; the consignment fund strengthens the absolute return strategy and regularly opens product sales, launches a non-monetary fund rapid redemption service, and consigns 738.9.4 billion yuan, including 378 non-monetary funds from generation to generation.8.3 billion; consignment treasury bonds carry out targeted marketing around low- and medium-risk customers, with a sales amount of 424.220,000 yuan, an increase of 29 per year.09%; launching consignment collective trust plan products, further enriching investment and wealth management products, consignment asset management plans and collective trust plan products totaling 270.08 trillion; continue to enrich precious metal products, precious metal business transaction amount of 217.1.5 billion, an annual increase of 34.53%.At the same time, the annual report shows that the Postal Savings Bank actively implements regulatory requirements and continues to promote the net worth transformation of wealth management products, and the scale of net worth wealth management products has shown steady growth.The bank is committed to providing its customers with professional and comprehensive financial services, constantly enriching the two major product brands of “Postal Bank Wealth” and “Postal Banking Financial Intelligence” to meet the growing diversified wealth management needs of customers.It is understood that the asset management business of the Postal Savings Bank has always adhered to the concept of large-scale asset allocation, adhered to a stable investment strategy, and fully utilized the advantages of channels and funds to serve the real economy and the public with professional asset management capabilities.As of the end of 2019, the scale of wealth management asset management of the Postal Savings Bank was 9253.4.2 billion yuan, an increase of 13 from the end of last year.60%.Digging deeper into the trend of retail customer value shifting towards scenario-based operations, retail business has gradually become an important engine driving bank revenue growth.Nearly 40,000 business outlets of the Postal Savings Bank have sunk in depth, with extensive coverage and a balanced layout, covering 99% of counties (cities) nationwide.As of the end of 2019, the number of individual customers of the Postal Savings Bank reached 6.0.5 billion households, managing retail customer assets (AUM) over 10 trillion, an increase of more than 800 billion yuan from the end of last year.The huge network advantages and personal customer resources provide a strong impetus for the development of the retail business of the Postal Savings Bank.”The huge retail customer base has brought about the strong deposit strength of the Postal Savings Bank.Huatai Securities analysis believes that the uniqueness of the Postal Savings Bank is top-down: the shareholder background with the Post Group as the major shareholder has shaped the unique “self-operated + agency” model of the Postal Savings Bank, the advantages of the retail customer base and the uniqueThe balance sheet (solid deposit base, rapid loan development) is recognized as high growth.CITIC Construction Investment said that the retail bank’s advantages in retail business have continued to deepen, which will be mainly reflected in three aspects: First, the proportion of retail loans will increase.At the end of 2019, the size of retail loans reached 2.75 trillion, accounting for 55% of total loans.30%, an increase of 4 from the end of 2018.13 mergers are at the forefront of the industry.Second, the non-performing loan ratio declined.Bad loans for retail loans at the end of 2019 0.99%, an 8BP drop earlier.Among them, for personal micro-loan business, the Postal Savings Bank has cooperated with the government, guarantee companies, insurance companies and other platforms to reduce business risks, and through financial technology, the whole process of “digitalization, intelligence, standardization” has been achievedThe business risk of personal small loans.Third, the retail loan yield of the Postal Savings Bank rose from 5 at the end of 2018.36% rose to 5 at the end of 2019.43%.With its natural retail genes and business endowments, how will the Postal Savings Bank fully leverage its retail advantages and deepen the transformation of new retail in the future?This has always been the focus of investors’ attention.It is understood that 71% of the individual customers of the Postal Savings Bank are distributed in counties and below, and this part of the customer base is very dynamic and has great potential.In the future, the bank will use a unique channel layout advantage, with a temperature service, from conventional customer marketing to scenario-based, equalization, life-oriented customer management changes, and stimulate new momentum for business development.Especially in customer maintenance, it is necessary to dig deep into customer value, actively promote the construction of a wealth management system, enhance the value of mid-to-high-end customers, and at the same time strengthen big data analysis to enhance the precision marketing and comprehensive service capabilities of mass customers.In terms of business model, the Postal Savings Bank will create a unique financial ecosystem, meet the accelerated arrival of a “contactless business” model, and accelerate the establishment of an online and offline integration, financial and non-financial interaction ecosystem.Based on the “Post Store Canteen”, we will accelerate the construction of the “You Life” service platform, link extensively with medium consumption scenarios, and seamlessly embed financial products and services into customers’ production and life scenarios.Through the in-depth integration of online scenarios and offline services, it provides enterprises and individuals throughout the urban and rural areas with convenient services “anytime, anywhere, and at any time”.”The small rural village of youth” is a huge blue ocean.Many Internet companies have also seen the huge potential of the sinking market and the unique advantages of the Postal Savings Bank, and are actively cooperating with the Postal Savings Bank to jointly explore this blue ocean.Postal Savings Bank said that it will work with Internet companies to build an ecosystem, use data, scenarios, and intelligent technologies to empower offline outlets, customer resources and marketing systems, promote online and offline integration, and create the most complete offline outlets.Rich three-dimensional O2O customer service system, win-win with partners.Sauna, Ye Zhe Editor Xu Ze proofreading Li Xiangling