As deposit rates fall, banks are busy attracting customers, and the "financial night market" where people can buy after get off work heats up
2024-08-14
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With deposit rates falling, many investors are looking for new places to "move their deposits," and banks are also rushing to launch new products to attract customers. Recently, many banks have competed to launch financial products that support nighttime subscription and redemption, and the "wealth management night market" has become a standard feature.
Industry data show that the scale of bank wealth management has rebounded significantly since July, and the scale of the wealth management market is expected to return to its historical high by the end of 2024. Behind the launch of the "wealth management night market" by banks is an innovative attempt at a wealth management service model in the context of increasingly fierce market competition.
Financial products that can be purchased after get off work are popular
"Idle money is not idle, you can buy it after get off work", "Open 24 hours a day", "You can buy financial products after get off work"... Recently, the "financial night market" has become popular again. Recently, China Merchants Bank Wealth Management, Ping An Wealth Management, Everbright Wealth Management, Guangdong Bank Wealth Management, Bank of Beijing and other companies have launched a special area for "financial night market" and launched a variety of financial products that support night-time subscription and redemption.
"This arrangement is quite suitable for office workers." Ms. Sun, a white-collar worker in Beijing, said that she often encountered such a situation before: she had no time to study financial management at work, and the purchases she made after get off work were counted as the next day's purchases, and the interest could not be calculated until the third day. Especially during holidays, if you buy a few hours late, you may lose the income of the entire holiday period. In addition, some financial products cannot be subscribed at night, and it is too late to buy after get off work the next day. The subscription and redemption rules are not friendly to office workers.
The characteristics of the "Financial Night Market" products are that the interest accrues earlier and the funds arrive in the account faster. Conventional financial products are closed from 15:00 to 17:00 on trading days, while "Financial Night Market" products can be purchased or redeemed before 24:00 on trading days, which is regarded as same-day transactions.
Take the "Wealth Management Night Market" app of Bank of Beijing as an example. Currently, there are 4 wealth management products on sale, and the one with the highest sales has been subscribed by 80,000 people. The reporter clicked on one of the products and found that the starting point of investment in this product is as low as 0.01 yuan. If you buy it before 24:00 on the trading day, you can enjoy the benefits on the "T+1" day. In other words, if you subscribe after the closing time of traditional wealth management products, you can enjoy at least one more day of benefits.
The "Wealth Management Night Market" app of China Everbright Bank has launched a 24-hour wealth management product. Investors can also subscribe or redeem before 24:00 on the trading day, which is deemed as subscription on the same day (T day), and the income will be calculated or credited on T+1 day. Some users have reported that if redeemed before 24:00, the account will be credited one day faster than conventional products, and the money can be used more flexibly.
In terms of returns, the products currently available in the "Financial Night Market" are mainly fixed income and cash management products, with low risk ratings and relatively stable investment returns, most of which are between 2% and 3%.
Deposit interest rates cut and investments "move"
The "wealth management night market" is not new. Many years ago, banks such as China Merchants Bank, Everbright Bank, and CITIC Bank launched similar products, but they did not attract much attention. Why is it popular this time? Wealth management managers of many banks mentioned the new round of deposit interest rate cuts.
After the new round of deposit interest rate adjustment, the deposit interest rates of state-owned banks of all maturities have dropped to below 2%. The trend of "deposit migration" has driven the scale of wealth management to continue to rise. Among the wealth management companies that have disclosed their semi-annual wealth management report data, the scale of wealth management products has increased to varying degrees compared with the end of 2023.
"Many investors attach great importance to the flexibility of financial management transaction time so that they can obtain additional income one day in advance. Therefore, many users have recently consulted about purchasing the 'Financial Management Night Market' product." A financial manager of a commercial bank told reporters.
Dong Ximiao, chief researcher at China UnionPay, believes that the comeback of the "wealth management night market" service reflects that banks and wealth management companies are working hard to explore differentiated services to better attract and retain investors amid fierce market competition.
However, many bank wealth management managers pointed out that the "wealth management night market" products mainly extend the transaction time, and the interest rate is not much different from other wealth management products. They are more suitable for short-term investments or investments with low investment amounts and the possibility of frequent subscription and redemption.
Don’t forget to assess the risks when making financial choices
While some depositors' funds are transferred to bank wealth management products, insurance wealth management has also become another destination for "deposit migration". Many bank branch wealth management managers have begun to emphasize insurance product configuration to their customers.
"The interest rate can reach 3.0%, and the return will be reduced at the end of the month. The principal and interest are guaranteed in the contract." The insurance product information on the blackboard at the entrance of a commercial bank is very eye-catching. The financial manager suggested that long-term idle money is more suitable for insurance. Many financial managers and insurance agency brokers said that savings insurance including increasing life insurance and annuities are more popular.
However, Mr. Zhou, an employee of a leading insurance intermediary in the market, said that the profit calculation and contractual agreements of insurance financial products are relatively complicated, and it takes a long period of time to achieve high returns. If you want to cancel the policy temporarily, you may suffer a loss of principal.
After the transition period of the "New Asset Management Regulations" ended, bank wealth management has fully entered the era of net value, the operation of wealth management products has become more standardized, the number of participating institutions has increased, and market competition has become more intense. Breaking the dilemma of homogeneous competition and providing differentiated products and services have become the focus of various institutions.
However, financial management is not a deposit, the product has risks, and investment needs to be cautious. "Investors must balance risks and returns to comprehensively allocate assets, and need to abandon the previous understanding of 'hard redemption', face up to the volatility of investment and financial management returns, and realize that high returns are inevitably accompanied by high risks." Dong Ximiao suggested.
Image source: IC photo
