The competition in the fund agency sales market is becoming increasingly fierce: Internet platforms are attacking the city and the bank and securities companies are fighting back
Text and photos/Wang Chuhan, Wen Jing, all media reporters of Guangzhou Daily
"Few people buy new funds now." A staff member of a joint-stock commercial bank in Guangzhou told reporters.
The reporter noticed that, affected by market fluctuations, fund sales were cold.
The data shows that the business share of traditional banks and securities companies has decreased quarter by quarter; at the same time, the market share of independent agency agencies, especially those with an Internet background, has continued to increase.
However, for the sale of fund products on Internet platforms, many consumers have complained about excessive marketing.
According to the analysis of industry institutions, traditional banks and securities companies continue to lose their cities and lose ground, relying solely on business outlets to "desperately sell", and their competitive positions will gradually lose their competitive positions. It is becoming more and more abundant, and the level of electronic technology is gradually improving. Like the three-party institutions, there are also resources to build a "wealth supermarket".
Follow 1:
Some banks sell funds with high fees and equity products are difficult to sell
A brokerage practitioner in South China said frankly that equity products are now difficult to sell, customers prefer safe-haven assets, and new funds are on the sidelines.
A staff member of a joint-stock commercial bank in Guangzhou said that the current rate of the bank's preferred funds is 10% off, but in general, compared with other channels, the fund rate of some banks' agency sales will be higher.
In fact, the agency sale of public funds has become a "fighting arena" for banks/brokers/tripartites and other non-bank financial institutions in recent years.
Industrial Research pointed out that by the end of 2021, the top 100 agency sales accounted for about 52% of the total public offering. Compared with the deposit and bank wealth management markets, the concentration of public fund sales has not increased significantly.
On the one hand, this shows that the public fund sales business is still in fierce competition; on the other hand, considering the continuous emergence of new institutions, for the development of institutions, at this stage, "making the cake bigger" (that is, cultivating residents' awareness of wealth management and increasing wealth management) Migration from deposits to asset management products) is far more important than “dividing the cake” (that is, squeezing the share of other institutions).
As of the fourth quarter of 2021, the shares of the three types of institutions accounted for 52%/34%/12% respectively. Commercial banks have a good debt base and business network advantages, and are still the main force in agency sales in terms of total volume.
The reporter noticed that the bank channel fund agency sales business is ushering in strict supervision.
For example, the "Decision on Ordering Corrective Measures against the Fujian Branch of Bank of Communications Co., Ltd." recently disclosed on the official website of the Fujian Securities Regulatory Bureau, which mentioned that the Fujian Branch of the Bank of Communications is responsible for the fund sales business of some branches involved in the fund sales process. Five violations, including failing to obtain fund qualifications and failure of fund sales staff to inform individual investors of their suitability matching opinions, were ordered to corrective measures.
"As a traditional agency sales channel, the advantages of banks, such as brands, outlets and professional teams, are still difficult to be easily replaced. At the same time, banks are also actively absorbing the advantages of other channels and innovating to cope with the fierce market competition. It will still maintain its dominance in the agency sales market," said Zhou Maohua, a researcher at the Financial Market Department of China Everbright Bank.
Industry insiders pointed out that although banks are the main force in fund agency sales, they still face the threat of independent agency sales platforms such as the Internet. In the future, fund agency sales may show a diversified pattern.
Follow 2:
The rise of Internet agency sales, independent agency agencies are favored by young people
The marginal status of banks and securities companies has declined, and the share of independent agency agencies has increased.
Societe Generale Research pointed out that, based on the proportion of shares disclosed by the China Fund Industry Association from 2015 to 2019, independent agency sales continued to be strong, with the proportion rising from 5.6% in 2015 to 34% by the end of 2021; at the same time, The share of fund agency sales of commercial banks and securities companies continued to decline, with the proportions dropping from 66.2% to 52.6% and 26.3% to 12.2% respectively.
The reporter noticed that independent agency agencies such as Ant Fund and Tiantian Fund recently disclosed the data for 2021.
Hang Seng Electronics announced its 2021 annual report, and the full-year performance of its stake in Ant Fund was also announced.
According to the data, Ant Fund will achieve an operating income of 12.124 billion yuan in 2021, a net profit of 504 million yuan, and a net profit margin of 4.16%.
In 2021, Tiantian Fund’s fund sales exceeded 2 trillion yuan for the first time. The company’s operating income in 2021 will reach 5.081 billion yuan, and its net profit will reach 282 million yuan.
Haomai Fortune’s 2021 annual report disclosed that revenue was 1.041 billion yuan and net profit was 330 million yuan, a year-on-year increase of 16.34%.
Relying on Internet traffic, independent agency agencies are being favored by young people.
Judging from the market situation, more and more "post-80s" and "post-90s" users buy and sell fund products through Internet platforms.
The reporter opened Alipay, JD Finance, Tencent Wealth Management, Suning Finance and other mobile apps, and there are "fund" entrances.
According to the "China Fund Investment Advisory Blue Book 2022", the proportion of fund investment advisory clients aged 18 to 40 is as high as 80%, of which nearly half are 25 to 35 years old, and the ratio of males and females is close.
They are more accepting of online channels and smart products, which is highly compatible with the "online" and "intelligent" genes of the emerging Chinese fund investment advisory business.
The industry pointed out that the convenient transaction methods of the Internet tripartite platform, the minimum purchase threshold of 1 yuan or 10 yuan, and low transaction fees have greatly reduced the cost of fund investment, especially attracting young users.
The reporter noticed from the Heimao Complaint Platform that many consumer complaints about the sale of fund products on Internet platforms mainly focus on excessive marketing on the platform.
Some consumers questioned why the funds recommended by some platforms had medium and low risks, but they kept losing money after buying them; some consumers pointed out that they chose the three funds recommended by the platform, but kept losing money after buying them.
trend
Traditional Banks and Brokers
Need to build a "wealth supermarket"
Zhou Maohua said that in recent years, the competition in the fund agency sales market has intensified. In addition to traditional bank agency sales channels, brokerage agency sales, and fund direct sales, investors purchasing funds have also experienced the strong rise of Internet platforms in recent years. Make up the price and try to get customers as much as possible.
"The scale of fund agency sales on the Internet platform has grown against the trend, and it has certain advantages in terms of Internet marketing, such as more grounded marketing and richer scene experience," Zhou Maohua added.
What about backward banks and brokerages?
Societe Generale Research pointed out that in the process of third-party institutions conquering the city and increasing their share, traditional banks and brokerages continued to lose ground and lose ground, relying solely on business outlets to "desperately sell", and their competitive position will gradually lose their competitive position.
From the perspective of the follow-up situation, on the one hand, with the net worth of products of wealth management subsidiaries and the public offering of asset management products of securities companies, the product lines of relevant institutions are increasingly enriched, and the level of electronicization has gradually improved. On the other hand, with the advancement of anti-monopoly in financial business, supervision has brought Internet wealth sales institutions and traditional financial institutions to the same starting line. For example, the recent suspension of Internet institutions' platform-type "buyer investment advisory" business is a reflection of the intention of relevant regulatory policies. .