Huo Xuewen: Wealth management is a bridge and link for financial services to the real economy

On December 7th, under the guidance of the Beijing Municipal Local Financial Supervision and Administration Bureau and the People's Government of Tongzhou District, Beijing, the "2023 Global Wealth Management Forum" was held in Beijing, hosted by Caijing, Caijing Think Tank, and Caitonghui. The theme of the forum was "Boosting Growth and Openness with High Quality Financial Development". Huo Xuewen, Secretary of the Party Committee and Chairman of Bank of Beijing, stated at the meeting that wealth management is a bridge and link for financial services to the real economy, and an important way for the people to share the achievements of the real economy.

Huo Xuewen, Secretary of the Party Committee and Chairman of Bank of Beijing

Huo Xuewen mentioned that the personal financial assets of Chinese residents have exceeded 250 trillion yuan, and the total AUM (asset management scale) of listed banks has exceeded 100 trillion yuan, indicating a huge wealth management space.

In the era of wealth management, commercial banks need to seize the opportunities of the times, enhance the endogenous driving force of digitization, enhance the aggregation ability of ecological resources, enhance the professional value creation ability, and enhance the borderless wealth management services of specialized and innovative enterprises from "private" to "legal person".

The following are some transcripts of speeches:

Dear leaders and guests, today the Vice Center is full of distinguished guests. I am particularly optimistic about the development of wealth management in the urban sub center. My opinion is that in order to develop a wealth management center, five elements must be possessed:

Firstly, there is an area where everyone can work. This is a unique advantage in the sub center. Secondly, there is a favorable policy and service environment. Thirdly, there is a gathering of wealth management functions. Training wealth management talents and building a wealth management research institute can basically meet various functions in the sub center. Fourthly, there are institutions. Many institutions are gathered here, and the wealth management subsidiary of Bank of Beijing is also registered here. Fifth, there are talents in wealth management. Today, there is a gathering of talented people. So it is timely for the sub center to develop wealth management.

Bank of Beijing particularly supports the construction of wealth management centers in urban sub centers, as well as the establishment and development of global wealth management forums. It also standardizes the development of wealth management business in accordance with the requirements of the Municipal Party Committee, Municipal Government, Financial Bureau, and various regulatory agencies.

Wealth management is a bridge and link for financial services to the real economy, and an important way for the people to share the fruits of the real economy.

Banks have both the advantages of being the first stop of financial services and the comprehensive advantages of one-stop financial services, making them the main force of wealth management services. The personal financial assets of Chinese residents have exceeded RMB 250 trillion, while the total AUM (Asset Management Scale) of listed banks has exceeded RMB 100 trillion, indicating a huge wealth management space.

Beijing Bank adheres to the principle of "focusing on growth" and takes children's finance as the starting point, striving to create a "bank that accompanies you for a lifetime". We have distributed over 1 million "Little Beijing Cards" to our children, helping parents manage their children's New Year's money well. We have become one of the first banks approved to operate personal pension business, with over 1.2 million personal pension accounts opened, ranking first in the Beijing region. With the dual efforts of "one old and one young", we have created a complete financial service loop that accompanies you throughout your life, from children's finance to growth finance in college, to entrepreneurship finance after graduation, to family finance for starting a family and starting a business, to wealth management finance and pension finance. Bank of Beijing will provide excellent services at every critical point in life. Currently, Bank of Beijing has over 28 million retail customers and manages over 1 trillion yuan of personal financial assets.

Looking ahead to the future, in the era of wealth management, commercial banks must seize the opportunities of the times and focus on four aspects:

Firstly, enhance the endogenous driving force of digitization. Faced with the huge demand for wealth management, commercial banks must rely on digital capabilities to achieve coverage towards popularization and inclusiveness, that is, to do a good job in the political and people-oriented nature of financial work. In the first half of the year, Bank of Beijing won the "three major battles" of digital transformation and built a unified data base, a unified financial operating system, and a unified risk control platform. We have also launched the "new three major battles" of digital transformation in "big retail, big operation, and big technology". That is, big retail drives big operation, big operation drives big technology, and technological innovation helps the new development of banking business, reshaping the wealth management platform supported by all products. We have formed a wealth management system supported by online, offline, and air channels. At present, the mobile banking users of Bank of Beijing have exceeded 15.2 million, with MAU exceeding 6 million, and the digital service experience is constantly improving.

Secondly, enhance the aggregation ability of ecological resources. Commercial banks have comparative advantages on the client and channel sides, while brokerage firms, insurance companies, and asset management institutions have professional advantages in segmenting products and assets. Today I also saw many professional institutions. Bank of Beijing is willing to provide excellent product sales services for everyone. We are leading in product sales capabilities nationwide, and we hope to work together with wealth management institutions to improve everyone's wealth management.

By establishing a wealth management ecosystem that integrates with external institutions, commercial banks can further enhance customer stickiness and enhance the full lifecycle management of wealth products. On the one hand, Bank of Beijing has diverse financial licenses in consumer finance, financial leasing, life insurance, public funds, and wealth management subsidiaries, which can provide customers with one-stop and integrated financial services. On the other hand, Bank of Beijing actively expands the wealth management ecosystem, through overlapping capabilities and complementary roles, to jointly create an open product platform for customers, professional funding capabilities, high-quality value-added services, and comprehensive wealth companionship. In September this year, Bank of Beijing held the first Wealth Partner Ecological Conference, bringing together over 100 wealth partners. In the future, we are willing to work together with various wealth partners to expand and strengthen the ecosystem of wealth management.

Thirdly, enhance professional value creation capabilities. The wealth management of commercial banks is reflected in the shift from a seller centered model of product sales to a buyer centered model of customers. We will comprehensively shift towards customer centricity in both corporate and personal services. Nowadays, our digital capabilities have improved. A mobile phone is like a bank, and a mobile phone is like a branch of the entire industry chain. Therefore, our digital capabilities have been enhanced, and our mobile banking capabilities have been enhanced. In addition, with more than 600 branches nationwide, we can provide customers with customer-centric and comprehensive services.

Recently, Bank of Beijing has launched a new round of organizational structure reform for its retail business, achieving an integrated CPCT reform in wealth management (customer product channel team). We integrate customers, products, channels, and teams into one line to provide excellent service with maximum advantages. Establish a wealth platform department to strengthen the intensive and platform based management of the public and wealth customer groups. Establish a private banking department to strengthen exclusive and professional companionship services for private banking customers, especially through integrated services to further improve customer satisfaction.

Fourthly, enhance the wealth management services of specialized, refined, and innovative enterprises from "private" to "legal person" without boundaries. Bank of Beijing is fully committed to building a "specialized, refined, unique, and new first line". Since last year, it has comprehensively laid out services for specialized, refined, unique, and new enterprises. Now, more than 1/10 of the specialized, refined, unique, and new enterprises in China are customers of Bank of Beijing, and the number of specialized, refined, unique, and new enterprises served has exceeded 11000. We have specially developed an unsecured, unsecured, pure online and pure credit loan product called "Leading e-Loan" for specialized and innovative enterprises. The maximum credit limit can reach 20 million yuan, and the loan term is 3 years. It can be borrowed and repaid as needed. The legal representative of the enterprise can download the "Little Giant" app of Bank of Beijing for automatic amount measurement. This product has an excellent experience, currently serving 3000 enterprises with a loan balance of over 23 billion.

We have gained a group of entrepreneurial clients through such services, and we have also strengthened our connection with the Beijing Stock Exchange. The headquarters of Bank of Beijing is located on Financial Street, 100 meters away from the Beijing Stock Exchange. Now, we always say "the last mile", and Bank of Beijing needs to help connect specialized, refined, and innovative enterprises directly to the Beijing Stock Exchange within the last 100 meters.

We have specifically established an exclusive fund for investing in the Beijing Stock Exchange, and actively promote the listing of specialized, refined, and innovative enterprises in various regions on the Beijing Stock Exchange. At the same time, "Enterprise Houses" have been established at the head office and various branches of Bank of Beijing to build customer markets and establish ecological partnerships with customers. Through such services, we aim to turn the services provided to enterprises and individual entrepreneurs into a cohesive and ecological whole. We hope that all entrepreneurs can experience wealth management services and corporate services at Bank of Beijing.

Finally, I wish this forum a complete success. Thank you!