Why do banks sell products on a commission basis?

Bank consignment refers to the sale of non-bank products by banks, which is an important way of banking business transformation and the core means for banks to continuously improve their comprehensive competitiveness. The following three aspects are the reasons why banks want to sell products on commission.

First, customer needs. With the intensification of competition in the financial market, the traditional banking business can only bring limited benefits to banks. The demand of consumers is escalating, and they expect banks to provide more diversified and innovative financial products and services. Therefore, banks need to broaden their business scope, meet different needs of customers, and improve customer stickiness and satisfaction.

Second, profit growth. Consignment of non-bank products can bring considerable profit growth to banks, thus improving their profitability. Not only that, consignment can also develop new customer resources for banks, enhance customer stickiness and strengthen customer relations. In this way, banks can get more income and ease the pressure of traditional banking business.

Third, market competition. With the rise of new financial services such as Internet and mobile payment, people's demand for financial services has changed greatly. Traditional banking business has been challenged as never before. In this context, in order to improve market competitiveness, banks need to further find new growth points, expand their business scope and provide more diversified financial products and services.

To sum up, it is an inevitable trend for banks to sell non-bank products on commission, and it is also an important measure for bank transformation. Through consignment, banks can meet customers' needs, increase profit growth, enhance market competitiveness and achieve sustainable development.