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On September 6th, at the 2024 Inclusion ยท Bund Financial Technology Forum for Bank Wealth Management, hosted by MyBank and co-organized by CITIC Wealth Management, Everbright Wealth Management, and Ping An Wealth Management, McKinsey's Global Managing Partner Ma Ben released the "Six Major Trends in Bank Wealth Management."
New internet distribution channels, new customer groups such as micro and small business operators, and the application of new technologies like AI big models will reshape the future of bank wealth management.
It is reported that these six major trends come from McKinsey's authoritative case studies and data model forecasts, providing forward-looking insights for the bank wealth management industry, which has been developing for 20 years.
Trend One: Scalability: By 2030, the scale of the bank wealth management market will grow to 50 trillion, becoming the mainstream way for residents to manage their wealth.
McKinsey analysis shows that against the backdrop of a general downward shift in risk preference among wealth management clients, bank wealth management will be the mainstream alternative to deposits in the allocation of client wealth management, with an expected annual growth rate of 9%, reaching 50 trillion by 2030.
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Trend Two: Digitalization: By 2030, the number of bank wealth management users will exceed 200 million, with mobile phone purchases of wealth management becoming the core path.
Data shows that the number of bank wealth management users grew from 22 million in 2019 to 120 million in the first half of this year.
With the help of digital channels such as mobile internet, the scale of bank wealth management users is expected to follow the trajectory of public funds and usher in continuous growth.
It is estimated that by 2030, the number of bank wealth management investors is expected to double to over 200 million, with mobile phone purchases of wealth management becoming the core path.
Trend Three: New Customer Groups: Micro and small business operators will become one of the most promising customer groups for bank wealth management, with the market size they contribute expected to double by 2030.
According to statistics from the State Administration for Market Regulation, by the end of 2023, there were 124 million individual industrial and commercial households and 52 million small and medium-sized enterprises nationwide.
With an annual business income of nearly 50 trillion from over 170 million small and micro enterprises, they will become one of the most promising customer groups for bank wealth management, with the market size they contribute expected to double by 2030.
Trend Four: New Channels: By 2030, half of the bank wealth management sales scale will come from distribution by other banks.
McKinsey predicts that with the further opening of the distribution system of bank wealth management business, and the contraction of asset management business of small and medium banks, facing the huge wealth management demand of residents, banks will undertake external wealth management sub-products through distribution in the future.
It is expected that the proportion of distribution by other banks in the bank wealth management business will rise from the current 28% to 50% by 2030.
Trend Five: Intelligentization: In the next five years, artificial intelligence will drive a 15%-30% increase in revenue for wealth management companies and a 10%-30% reduction in costs.
McKinsey research shows that artificial intelligence technology will promote product innovation and intelligent sales channels for wealth management companies, achieving precise matching of people and goods.
The improvement of capital utilization efficiency and asset investment efficiency will drive a 15%~30% increase in revenue for wealth management companies.
At the same time, artificial intelligence will greatly enhance the credit rating and risk quantification analysis capabilities of wealth management companies, and the improvement of professional capabilities in the middle and back offices will reduce operating costs by 10%~30%.
Trend Six: Concentration: The bank wealth management sub-industry will further differentiate, and its own business competitiveness will determine the ranking.
McKinsey believes that wealth management subsidiaries with high strategic importance from the parent bank, stronger investment research competitiveness, and third-party business development capabilities will win more market share.
It is reported that more than 300 executives from the banking industry and technology professionals attended this forum.
In the on-site voting session, more than 80% of the wealth management subsidiary executives said they would focus on expanding the micro and small business operator customer group in the future, and more than 90% decided to increase the input of internet distribution channels in the future.
Zhang Xuyang, Secretary of the Board of Directors and Chief Business Director of Everbright Bank, shared "The Next Ten Years of Bank Wealth Management" on the scene, believing that the future of the bank wealth management industry will be a vast sea of stars.
Zhang Dong, Secretary of the Party Committee and General Manager of Ping An Wealth Management, and Dong Wenjie, Deputy Secretary of the Party Committee and President of CITIC Wealth Management, shared their own digital transformation practices, stating that developing digital finance and embracing the technological revolution is an inevitable choice for bank wealth management.
Through the empowerment of digital intelligence, bank wealth management will not only meet the needs for value-added of small and micro business liquidity but also fill the gaps in inclusive finance.