How does the securities business department transform from providing channel services to comprehensive wealth management?

Brokerage: Transition from Traditional Channels to Wealth Management

Editor's Note: With the awakening of investors' demand for comprehensive financial management, generalized wealth management with comprehensive financial services as the core will become the mainstream development direction of the securities industry and even the entire financial industry. At the "Seminar on Innovation and Development of Securities Companies" held a few days ago, brokers generally believed that the industry should seize the opportunity, actively explore the differentiated competition mode, promote the transformation of brokerage business from traditional channels to wealth management as soon as possible, gradually form the irreplaceable financial intermediary advantage of securities companies, push securities companies back to the origin of "investment banks", guide investors to form long-term rational investment concepts, and further improve the resource allocation function of the capital market.

cite

Investment consultant is the entry point and realization way for securities companies to practice wealth management. The traditional customer service model will gradually change from the business department as the main body to the "people" and investment consultants as the main body. Securities companies should focus on the wealth management system, classify management and promotion, give play to and publicize their own specialties, and guide the innovation of investment service mode.

Analysts pointed out that the connotation of wealth management is very rich. Small and medium-sized securities companies can not only take the development path of large-scale comprehensive securities companies, but also dig deep into a certain market segment and business field by virtue of their own operating characteristics and resource advantages, thus promoting the formation of industry-specific management and differentiated competition pattern.

Huabao securities

The innovation and development of securities firms need five aspects of policy support.

Huabao Securities pointed out that securities companies should strengthen the professional analysis of financial products from the perspective of comprehensive financial management needs, and provide suitable financial products and professional and thoughtful financial services for different types of customers. This requires securities companies to form a system in integrating financial products, providing investment services, building service networks, etc., and form characteristics and advantages different from other financial institutions such as banks.

Warburg Securities believes that different securities companies should have different development directions. On the basis of giving full play to the advantages of localization, large-scale securities companies with full-service qualifications can actively implement the internationalization strategy and build themselves into large-scale comprehensive investment banks with strong capital scale and strength, comprehensive promotion of core competitiveness, participation in international and domestic capital security market competition, stable operation and sustainable development.

For small and medium-sized securities companies, it is necessary to explore and innovate according to their own characteristics, establish differentiated market competition strategies, and form their own operating characteristics.

Huabao Securities believes that the innovation and development of securities companies need five aspects of policy support:

First, further expand the business scope of securities companies. Relax the conditions for setting up business outlets, enrich the types of comprehensive financial products for consignment, realize real wealth management services, open the investment direction and platform functions of asset management business, and create more space for the characteristic development of securities companies.

The second is to improve the classification evaluation system of securities companies. It is suggested that relevant characteristics and innovative business indicators should be included in the classification evaluation system of securities companies, and the existing capital and traditional business scale should be weakened to determine the weight of classification level, which in turn determines the business access of securities companies.

The third is to speed up the research and development and listing of financial instruments. Rich financial instruments and products are the basis of securities firms' characteristic operation, which promotes the development and listing of various financial products and derivatives.

Fourth, appropriately relax the leverage limit and improve the efficiency of capital utilization of securities companies. Improve the risk management system of securities companies with net capital as the core, increase the leverage ratio, and create more space for securities companies to explore diversified and characteristic operations under the premise of controllable, measurable and affordable risks.

The fifth is to improve the basic system construction. According to the changes in the internal and external situation, we will improve the development plan of the securities market and revise the basic legal systems such as the Securities Law, the Company Law and the Fund Law.

China merchants securities

The construction of wealth management business system must be innovated in many aspects.

China Merchants Securities believes that to develop wealth management business, it is necessary to give full play to the advantages of brokers, innovate in regulatory policies, business positioning, service model, product system, personnel organization, IT system and other aspects, build an effective wealth management business model, and gain due market share in the fierce market competition.

China Merchants Securities pointed out that in recent years, the wealth management business of domestic securities firms has just started, and there are many problems at present: First, individual investors, especially small and medium-sized investors, are relatively speculative, and the concept of wealth management through asset allocation and long-term value investment is not yet dominant; Secondly, limited by regulatory policies and their own product development and investment management capabilities, domestic securities companies' internal product development and external product consignment are affected, and there are fewer competitive products for customers to choose from; Finally, the number and ability of investment consultants who directly serve customers are difficult to meet the needs of wealth management business.

They believe that at present, domestic securities companies should deal with the fierce competition environment of brokerage business in the short term and stabilize or even improve the commission level; In the long run, it is necessary to integrate internal and external resources, establish an all-round wealth management service platform and form a diversified profit model. In order to achieve the above objectives and comprehensively analyze the operating status of securities companies, China Merchants Securities put forward the idea of building a wealth management business model.

First, high-end information services with clear pricing standards. According to the difference of customer service demand at different levels, the customized in-depth information service is of high value and can be priced by increasing the transaction commission rate.

Second, help manage business. Provide customers with full-cycle portfolio management and product recommendation suggestions, and customers will decide the transaction independently.

Finally, it is entrusted to manage the business. With the help of the company's asset management platform, we will provide customers with comprehensive entrusted asset management services in the form of collective financial management, targeted financial management or special financial management. Income includes management fee, performance commission and transaction commission income.

In addition, China Merchants Securities also pointed out that the implementation path of building a wealth management business model mainly includes a product system with core competitiveness, building a comprehensive wealth management platform and improving the professional quality of service teams.

Huatai Securities

The financial management business of securities firms should avoid the "marginalization" dilemma.

Huatai Securities said that the transition from channel service to wealth management is an inevitable trend of the development of securities firms. In developing wealth management, securities companies should base themselves on brokerage business, co-ordinate business resources such as asset management and investment banking and customer resources, strive to integrate other external financial products and services, and strive to provide differentiated, comprehensive and integrated financial services for high-net-worth customers and institutional customers.

In recent years, domestic brokers have promoted the transformation of brokerage business, created wealth management service brands and new customer service systems. However, Huatai Securities believes that at this stage, the brokerage business transformation has not broken through the profit model of intermediary fees based on channel services, and the transformation target model is still unclear. Compared with the existing brokerage business model, wealth management plays a huge role in comprehensively protecting customers' wealth and continuously improving their investment ability, making investment consultants become real financial doctors, changing from asking for from customers to giving, thus establishing a win-win mechanism between brokers and customers.

Therefore, promoting the transformation of brokerage business from channel service to wealth management is not only in line with the requirements of the industry development trend, but also the target mode of brokerage business transformation and upgrading, and it is also the comprehensive upgrade of brokerage business functions and the reshaping of business roles. The development of wealth management business can promote the value mining of brokers to change from traditional explicit value mining to lifelong value mining, promote the brokerage business to change from commission mode to commission and expense mode, improve the personalized service ability of high-end clients of brokers, enhance the voice of brokers in wealth management market and their comparative advantages in comprehensive financial service competition, and avoid the "marginalization" dilemma.

Huatai Securities said that building a wealth management system is a systematic project to transform the entire management system within securities firms, involving the decomposition, integration, innovation and regeneration of the organizational structure and business processes of the entire company. We should take customer demand as the core and wealth management department as the starting point, and integrate resources to build customer chain and service chain, so that customer chain and service chain can be organically connected.

Huatai Securities suggested that, in view of the fact that the transformation of brokerage business is generally in the stage of channel mode and financial management mode, the development and system construction of brokerage financial management business should be based on reality, with a long-term view, appropriately carry out the strategic advancement stipulated by policies, give full play to the comparative advantages of brokers, identify the target customer orientation, and gradually advance from the product level to the financial planning level, and from the talent level to the technical support level.

Citic jiantou

The conditions for establishing a wealth management system have been met.

CITIC Jiantou said that securities companies urgently need to build a wealth management system. Combined with the mature experience of foreign countries, the construction of wealth management system by securities companies is not icing on the cake, but a necessary stage for the company's survival and development.

They believe that at present, in the face of fierce competition inside and outside the industry and the increasingly rich financial needs of customers, securities companies can only embark on a new development path by constantly innovating and building a customer-centered wealth management system.

According to the preliminary statistics of China Securities Industry Association, at the end of 20 10, there were 4,555 business departments of securities companies, generating a net income of 654.38+008.5 billion yuan from brokerage business and services. At the end of 20 1 1, the total number of business departments increased to 5032, while the net income from brokerage business and services was only 68.9 billion yuan. In one year, the number of sales offices increased by 477, but the income generated decreased by 39.6 billion yuan.

"This set of data shows that the brokerage business has not got rid of the dilemma of relying on the sky to eat, and it also shows the necessity for brokers to build a wealth management system according to customer needs, thus changing the current single income model and simple competition." CITIC Jiantou said.

With the accumulation of residents' wealth and the intensification of inflation, the market needs products and services that can satisfy the preservation and appreciation of residents' wealth; Emerging financial instruments and products effectively meet the diversified needs of customers; The establishment of investment consulting system enables securities companies to have a professional team to serve customers; In recent years, there are frequent policies to support innovation, which have the policy conditions to build a wealth management system.

To build a wealth management system, CITIC Jiantou believes that the main contents should include: first, develop and enrich investment consulting business and expand investment services; The second is to provide targeted asset management products to meet the diversified and personalized investment and wealth management needs of customers; The third is to screen and promote third-party wealth management products and enrich the product line of wealth management system. Among them, developing and enriching investment business is the cornerstone, and providing investors with all-round wealth management consulting by continuously expanding the scope of investment services; It is a means to enrich the product line of wealth management system and meet the diversified and personalized investment needs of customers.

Soochow securities

Explore new ideas of characteristic management

Soochow securities said that at present, China's capital market is striding forward from emerging markets to mature capital markets, and securities companies, as the most important intermediary service institutions in the capital market, are also facing historical opportunities for rapid development. Soochow securities reconsidered the concept of characteristic management, seized the opportunity and met the challenge.

Soochow securities believes that since the beginning of this year, under the guidance of the new development idea of "setting the bottom line and expanding the space" promoted by the regulatory authorities, the environment for the development of the industry has changed, and China's capital market is entering a new starting point towards a mature market, which will definitely accelerate the new round of growth of the securities industry from the system.

In order to meet the new opportunities and challenges, at the beginning of the new year, soochow securities launched a big discussion on "transformation and upgrading, innovation and development" throughout the company. The main leaders of the company went deep into the grass roots, conducted in-depth and detailed discussions and investigations with cadres and employees, emancipated their minds, fully mobilized, and extensively solicited innovative suggestions. On this basis, on April 22, with the theme of "transformation and upgrading, reform and innovation", the company made a comprehensive deployment of innovation and development.

First of all, the new orientation and base strategy have been strengthened in deepening. Comprehensively deepen the construction of base areas. The main approach is to speed up the transformation of branches, build a comprehensive financial platform and continue to deepen the base strategy.

Secondly, new cooperation and comprehensive advantages have emerged on the platform. In order to better promote Suzhou's economic and social development, promote the adjustment of regional economic structure and industrial optimization and upgrading, accelerate the development of regional capital market, strengthen financial innovation and the development of high-tech industries, and enhance the regional financial environment and financial service capabilities, the company signed a financial advisory agreement with the county and municipal governments.

The third is to enhance new docking and special services through innovation. In order to fully meet the demand and improve the ability to serve the real economy, soochow securities takes "shortening the service radius and expanding the service scope" as the action guide, and actively promotes the transformation of traditional business to a "customer-centered" business model.

Fourth, new integration, corporate culture sublimates in deduction. If the company wants to successfully realize innovation and transformation, it must first achieve ideological unity.

Guo Xin Securities

An ideal investment and investment business system should have six elements.

"Investment consulting business is the focus and engine of the transformation of brokerage business from traditional channel service to wealth management." Guosen Securities said that whether it is because of the changes in the economic environment, the increase of high-net-worth groups or the needs of industry competition, it has become a * * * knowledge for the development of brokerage business to break through the traditional channel service and transform into wealth management to meet the diversified financial needs of customers.

Guosen Securities believes that an ideal investment business support system should have six basic elements: a professional and stable investment advisory team; Perfect customer relationship management platform; Innovative product design and development; Timely, effective and sufficient information support; Scientific evaluation and evaluation system.

Guosen Securities pointed out that among the above six elements, "professional and stable investment consulting team" and "innovative product design and development" are the weakest links in the current investment consulting business of securities firms, and they are also the bottlenecks that make it difficult to form differentiated competition.

Since the beginning of this year, the regulatory authorities have taken a number of measures to promote the innovation of brokerage business, such as collecting opinions on the management regulations of securities companies' consignment of diversified financial products, and the deposit account as a payment channel has also been reflected in innovative projects. These policy changes are of great significance to the transformation of securities firms. On this basis, Guo Xin Securities put forward three suggestions to promote business development.

First of all, the whole industry promotes the clear pricing of securities services. In order to protect the interests of investors and promote the long-term development of the securities industry, we call on the whole industry to carry out the price tag of securities services.

Secondly, try more diversified charging methods. The charging model linked to investment income is hoped to be supported. On this basis, whether the investment consultant fee can be linked to the customer's profit can better reflect the professional level and value of investment consultants and urge securities companies to pay attention to the preservation and appreciation of customer assets.

Third, explore the effective combination of investment business and asset management business to meet the needs of asset entrusted management customers.

Investment consultants directly provide services through "small targeted asset management" to meet the needs of clients entrusted with asset management, and directly provide personalized "asset allocation" and "account management" within the scope of client authorization, which requires further policy support.

Great wall securities

Fully transform brokerage business with investment development as the core.

Great Wall Securities said that the traditional trading agency of brokerage business has gradually become a basic function and is no longer the main source of income. It has become the main development direction of brokerage business to obtain diversified income through the continuous innovation of customer base, investment objectives, investment tools and strategies. The transformation of the securities industry focuses on opening up the market and business space, which directly serves the investment and capital needs of residents, enterprises and government departments.

Great Wall Securities believes that the experience of overseas mature markets is indeed the object of our study, but the maturity of the domestic securities market, whether it is the market, customers or securities companies, is far from the mature market, and we can only establish our own development goals and paths on the basis of learning.

From the specific situation of China, the focus of the securities industry transformation is to open up the market and business space and directly serve the investment and capital needs of residents, enterprises and government departments. Considering the differences in business and management capabilities, customer base, and geographical factors of securities companies, as well as the innovative role of regulatory authorities, different companies have different considerations and choices in the transformation of brokerage business. The key points of transformation can be: marketing model, customer management model, characteristic customer service, diversified financial products, innovative business, cross-market and cross-border market transaction services.

At the same time, based on the consideration of cost and basic ability, some companies may expand their business in the form of foreign cooperation, such as banks, trusts, insurance companies, fund companies, and even third-party financial management, private placement, consulting services and other institutions.

In view of the development of investment business, Great Wall Securities put forward three suggestions: first, clarify the definition and interpretation of laws and regulations; The second is classified management and development. Investment consultant is a growing business, and it is difficult to define its functional orientation only by relying on a set of standards. Therefore, it is necessary to develop, manage and promote investment consultants according to the requirements of brokerage business transformation. Third, securities companies should establish and improve the support system. From the point of view of brokers themselves, while designing the top level of the industry, the decision-makers should also choose a relatively clear investment orientation and business development direction in combination with competitive characteristics, so as to establish a complete support system and transform the invested personal brand into a company brand.

Datong securities

Industrial innovation will change from administrative leading to market leading.

"Innovation also means destruction." Datong Securities believes that the success of the road of innovation in the securities industry will definitely be the end of the traditional, homogeneous and low-end brokerage business model in the past, and it will be replaced by a brand-new brokerage business model with characteristics and core competitiveness.

They believe that at present, innovation and development have become the knowledge of the whole industry, and the road to innovation this time is very different from previous years. The reason for this judgment is that under the previous bull market background, brokers can obtain considerable brokerage income without independent innovation, and their endogenous motivation for innovation is weak, and industry innovation is more reflected in administrative leadership.

In the past two years, the traditional extensive business model has no way out, forcing brokers to re-examine the original model and think about how to reverse the passive situation through transformation. Innovation has become an inevitable choice for securities firms. Therefore, industry innovation will also change from the original administrative-led to market-led.

It can be predicted that once the market-oriented innovation is greatly stimulated, the vitality of the market will be unprecedented, which will have a revolutionary impact on the different business models of brokers and the creation of differentiated development patterns in the industry, and the impact and impact on brokers like us will be fundamental.

Based on this judgment, Datong Securities believes that in the next three to five years, both brokers engaged in comprehensive operation of the whole industrial chain and brokers engaged in specialized operation of only one link of the industrial chain need to uphold the following concepts:

First of all, there needs to be a very clear strategic positioning. In the future development, brokers need to make clear the strategic positioning that matches their own resources and market positioning, and realize the differentiation of strategic positioning among brokers.

Secondly, we should pay attention to complementary advantages and win-win cooperation. In the past, when the business of the whole industry was highly homogeneous, the cooperation space between brokers was very small and the foundation was very weak. However, with the acceleration of innovation in the securities industry and the continuous excavation of the depth and breadth of business areas, the specialized division of labor will become more and more detailed, which will greatly broaden the cooperation space between brokers and strengthen the allocation of resources within the industry.

Third, innovation is not a simple copy and blind obedience in form. The essence of innovation is breakthrough, that is, breaking through the old mindset and old rules and regulations. However, when innovating, it should be based on the company's own positioning and matching resources, and should not be divorced from the company's own reality, rushing headlong into it and blindly following the trend.

Galaxy securities

Implementing innovation with "big investment business"

Galaxy Securities said that in the next three years, Galaxy Securities will set the development strategy of brokerage business transformation as "big investment business" and implement the customer-centered financial product innovation and development strategy.

Galaxy Securities believes that in order to realize the transformation of brokerage business, brokers must reorganize their own market positioning and business model, learn from each other's strengths, establish a new strategic direction, and re-establish their comparative advantages under the new market situation.

As for the "big investment business" system of Galaxy Securities, Galaxy Securities said that "big investment business" is an investment consulting business system constructed by china galaxy Securities in accordance with the Interim Provisions on Securities Investment Consulting Business of China Securities Regulatory Commission, taking financial product innovation as the development strategy and cooperating with various business lines of the company.

Specifically, the business system includes the following six aspects:

The first is the product sales business. Taking the information products uniformly produced by the investment consulting department of the headquarters as the core, the contracted service personnel recommend and match the investment consulting information products uniformly provided by the company for affiliated customers, and obtain the commission income of value-added services accordingly.

The second is the product configuration business. Based on the methods and processes of wealth management, provide asset allocation services to target customers, and obtain sales revenue of financial products accordingly.

The third is investment consulting business. By providing investment advice to the target customers, the investment advisory service agreement is signed, and the investment advisory service fee (including fixed fee or account management fee charged according to account assets) is obtained accordingly.

The fourth is to learn sales-oriented business. Use the company's analyst resources and research resources to obtain research sales revenue by providing research services to target customers; Or use the company's analyst resources and research resources to provide research services for fund companies, private equity funds, insurance companies and other institutions, and thus obtain commission income.

The fifth is the special account investment business. Introduce the company's targeted asset management business or the fund company's targeted asset management business to a single customer with a total asset value of more than 6,543,800 yuan, or introduce the fund company's one-to-one special account wealth management business to customers with assets of more than 50 million yuan, and earn transaction commission income or account management fee income accordingly.

Sixth, comprehensive service-oriented business. The comprehensive service demand of customers is the service resource of each business line of the company. By signing an investment consulting service agreement, comprehensive service income is obtained by means of fixed fees or account management fees.