How do "Internet natives" manage their money bags? Xiao Gang, Shang Fulin, and Nobel laureates have something to say
A mobile phone is like a bank branch, and over 90% of business can be processed bit by bit. The traditional financial service industry is undergoing transformation, and the investment channels for young people are gradually diversifying. On September 8, at the wealth management industry forum of the Bund Conference, guests such as Xiao Gang, the former chairman of the China Securities Regulatory Commission, Shang Fulin, the former chairman of the China Banking Regulatory Commission, and Robert Schiller, the Nobel Prize winner, jointly discussed that new investors of the generation of "Internet natives" put forward higher requirements for the convenience, professionalism and intelligence of managing the "purse".
According to the 2022 China Banking Service Report, the average electronic diversion rate of banks is 97%, and more than 90% of business has been online. According to third-party data monitoring platforms, the monthly active users of China Mobile Banking App exceeded 500 million by the end of June 2023. The bank has more than 200 small programs on WeChat and Alipay.
Mobile banking makes banks more and more like "Internet companies". By the end of 2022, ICBC's App had a monthly life of 174 million, equivalent to many leading Internet companies. China Merchants Bank has also incorporated many lifestyle services into its app, including catering services, movie theater ticketing, and travel services.
"In the past, digital wealth management was mainly about banks, insurance and other institutions selling wealth management products online, but later the homogenization of products became more and more serious, and service differentiation became a new opportunity." Xiao Gang believes that the shift from Internet based products to Internet based services has become an important trend in the development of the industry, such as financial broadcast, financial community has basically become the standard configuration for industry companionship and investment education.
"Wealth management in the digital age is in an important period of development opportunities." Shang Fulin said that as of the end of June this year, the total net asset value of China's public funds was 27.69 trillion yuan, which has exceeded the scale of bank wealth management. In the first half of this year, the size of active equity funds decreased by more than 200 billion yuan, while the size of passive index funds such as ETFs increased against the trend, with the first ETF fund with a size exceeding 100 billion yuan appearing. On July 8th, the China Securities Regulatory Commission also launched a fee rate reform for public funds. Currently, more than 90 public fund management institutions have announced fee reductions, and the number of fee reduction funds exceeds 2500.
"With the strong demand for asset allocation from households and enterprises, developing wealth management business has become an inevitable choice for asset management institutions to achieve high-quality development." He also stated that the external environment, population structure changes, and national income growth have led to changes in the allocation structure of physical assets such as real estate and financial assets in household assets, and the future demand for medical and elderly care will further emerge. The fixed income expectations of investors have been shattered, and the demand for investment advisors has become more prominent, requiring more professional investment advice, financial planning, and other comprehensive financial services. At the same time, considering the high proportion of individual investors in China, higher requirements have also been put forward for investor education and rights protection.
Robert Schiller, a Nobel laureate in economics and a Stirling economics professor at Yale University, also expressed his concern for China's wealth management practices. He believes that China and the United States are at a similar stage, both adopting advanced financial technology, combining behavioral finance and psychological research, paying attention to investor psychology, and guiding rational investment. "We must consider the risk of speculative foam, strengthen investor education, and let some people have more risk management perspectives, not just to invest by luck."