43 Banks, Who Can Best Protect Your Money Bag? | 2024 Gold Standard Wealth Management Ranking
In a market brimming withthousands of seemingly identical wealth management products, which bank can you trust with your hard-earned savings? In other words, which bank is best equipped to safeguard your moneybag?
The answer is not as straightforward as it may seem. Every bank in the country is vying for a piece of your financial pie. This isbecause wealth management has become a strategic priority for all banks. Especially in the past four years, as net interest margins (NIM) have been squeezed to historic lows, wealth management, with its fee-based income, has emerged as a strategicsecond growth pole for banks.
The Malik Curve and a Changing Landscape
At the beginning of 2024, Wang Liang, President of China Merchants Bank, a leader in retail banking, proposed the MalikCurve, a strategy for building a robust wealth management business. This concept has been adopted by the banking industry as a new engine for future growth.
However, the wealth management landscape is evolving rapidly. The transition period for the Asset Management Regulations ended in 2022, leading to full-scale implementation. In 2023, the Asset Management Department of the National Financial Supervision Administration (NFSA) established its operations, creating a more stringent regulatory environment. Simultaneously, the smart money is increasingly shifting between the debt and equity markets, demanding greater expertise from banks.
The Gold Standard Ranking: Unveiling theLeaders
To understand this evolving landscape and identify the leading banks, the Southern Weekend New Finance Research Center has conducted a comprehensive ranking of 43 banks (including 42 listed banks and Guangfa Bank, a systemically important bank). The evaluation process, which spanned six months, involved a robust methodology, utilizingdata from 2022 and 2023 annual reports, and was published in July 2024 as the 2024 Gold Standard – Wealth Management Ranking: Bank Ranking Initial List. The initial list garnered significant industry attention, lauded for its scientific evaluation system and reliable data.
A Continuous Evaluation Process
In September, the Southern Weekend New Finance Research Center updated the ranking based on the mid-year reports of 2024. For a few key indicators not disclosed in the mid-year reports, the center used data from 2023 annual reports to ensure accuracy andcompleteness. This continuous data update ensures the ranking remains relevant to the dynamic market conditions.
Beyond Data: Expert Insights and Public Opinion
The ranking goes beyond mere data analysis. It incorporates expert opinions from a panel of professionals who conducted blind reviews of the banks. Additionally, the research center conducted online surveys andon-site investigations to capture public perception and gather valuable insights.
A Clear Differentiation: The Money Bag Guardians
The scores of the 43 banks reveal a significant differentiation. The gap between the highest and lowest scores exceeds 70 points, reflecting the stark realities of the industry in a counter-cyclical environment. The days of relying solely on asset size are over; smaller, more specialized banks are gaining favor.
The Gold Standard ranking offers a valuable guide for individuals seeking to entrust their money bag to a reliable financial institution. It highlights the banks that have risen to the challenge ofa changing landscape and are best positioned to navigate the complexities of wealth management in the years to come.
This article is a brief overview of the Gold Standard ranking. For a detailed analysis of the methodology, individual bank rankings, and expert insights, please refer to the full report published by the Southern Weekend New Finance ResearchCenter.
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