The death of three parties: revelation of the rise and fall of a third party wealth management company

Wen/plowing family

Times have changed too quickly. Some once famous institutions, perhaps in the next 2 or 3 years will disappear, and some industries new entrants, perhaps by virtue of their own resources endowment, leading the next phase of the industry trend. Recommended Titanium Media Authors ' financial history of third party wealth management companies:

That year, Wang Jingpo with the team was forced to flee from the Hunan Treasury securities, the creation of Noah's wealth. In the name of Noah, at that time to see quite a doom and then born taste. But then she must have not expected that Noah's wealth has only spent 5 years of time, completed from the primitive accumulation, rapid expansion, to capital integration, the company's listing of the whole process. And Noah also in a short span of 5 years time, then sit steady the third party wealth management industry leader's seat.

Around 2010, perhaps the light of Noah's wealth was too dazzling for everyone to take their eyes off Noah. But from then on, a third party wealth management company's gluttonous feast began. In 2010, Hu Tianxiang, a huge investment, was only a trust sale in Hangzhou's business trust, and he spent only 3 years making a huge investment into a net profit of 50 million. And in those years, in the first place in the plant--Sino-Financial Trust due to regulatory restrictions and business development and other factors, in a short span of 2 years, it quickly set up a series including the eternal Wealth, Datang wealth, Sheng Wealth, the wealth of the new lake, a huge three-party sales network ...

One or three party

2008 is like a watershed, and this year we have a Chinese version of the qe,4 trillion stimulus package that brings plenty of M2. Roughly estimated, 2008-2012 of these 5 years, the domestic M2 of the total growth in almost 1949-2008 M2 total. The large expansion of the volume of money directly created a group of high net worth customers with huge wealth. This provides a solid foundation for the Rise of third party wealth management companies.

When the CBRC renewed a new round of trust licences, it was originally intended to serve as an effective supplement to the Bank's indirect financing and to establish a window for sound capital markets. But into the 2007, with the enactment of the Trust "new two rules", the Trust program, as a direct financing tool with a lending function, quickly rose in the next 5 years, becoming the second-largest financial institution after the bank. In this Trust company volume rapid expansion of 6, 7 years, the third party wealth management companies naturally occasion, homeopathy, and fully enjoy the rise of the trust industry a huge dividend.

2008, for many financial practitioners is a confused period, the external economic crisis directly led to the domestic singing empty rhetoric continues to diffuse. Many practitioners, especially those with fixed income, are gloomy about the future of the industry.

But this negative sentiment was soon swept away by the ensuing 4 trillion economic stimulus plan. Since then, decimating, Greentown and other near-Bosan real estate companies staged a blockbuster reversal of the show; From then on, such as Evergrande, Bi Gui garden, Jia Zhao Industry and other real estate developers also stride forward, into another round of industry expansion. At the same time, abundant funds, but also to various provinces and cities a new round of "iron base" the strong impetus of construction. Countless debt-financing practitioners are delighted because they know that a new round of industry feasting is coming to them ...

Second, the industry's Sheng

This period, because of policy supervision, capital use restrictions and many other problems, the traditional bank loans can not meet the real estate and local government financing platform of the strong demand for funds, trust companies to open up the tide of financing.

At that time, the Trust Company in the best years, the project managers do not even have to go out to actively contract projects, many government platforms, real estate companies often take the initiative to come to the door, asking for financing cooperation. A steady stream of financing needs has been packaged as a trust product, and trust companies have set up their own wealth management centers to focus on product sales, but even so, large amounts of trust products are still not being digested by these wealth management centers. Third-party wealth management company as a trust product sales effective supplement, quietly rising.

The early third party wealth management company business model is very simple: the product end from the Trust company wholesale products, sales end to hire a financial manager to sell products, they draw the difference from the point. Third party products in sales, according to the quality of the product qualification, the 1.5%-3% Commission. As a result, a small third party, which sells only a billion of of its products, is likely to gain tens every year. The vigorous development of the industry, the supply of sufficient trust products, the huge demand of market finance, will undoubtedly give the third party management the huge growth space of the company. Therefore, in a short span of 3-5 years, Noah, Heng Days, the leader, Datang, the Grand Group and other third party management companies will create a huge amount of profits, completed the primitive accumulation of capital.

Iii. Trends

There is no feast of the world, and a feast of madness will come to an end.

Along with another 5 years of scale expansion, the real estate industry has become increasingly deformed in the rapid growth, the overall structure of the industry imbalance is serious, the total supply of real estate surplus. Many local governments have also been saddled with debt after a boom in government platforms. In the real estate industry, the excessive financing cost and the ratio of assets and liabilities can be maintained during the strong cycle of the industry, but the existing Gao Kaifa, high growth and high efficiency models are obviously difficult to maintain under the condition of the gradual disappearance of the population dividend, the excessive construction of the real estate bridge and the government investment pulling the GDP.

Under such background, although the traditional "piece" (real estate, political letter, channel) business still have space to do, but the project risk gradually exposed, the government supervision gradually tightened, the number of new projects gradually reduced, is an indisputable fact. This leads directly to the decrease of project quantity of trust Company and fund subsidiary, which leads to the serious shortage of product end supply. Third party wealth managers, especially small and medium-sized third parties, are less fortunate, if the trust companies rely on the accumulated stock business and the company's stock of profits to survive the harsh winters.

In a third party business model, the "two ends" are highly dependent, product end relies heavily on trust companies, all kinds of private equity, so the trust companies in the wind control tightening, product break in the background, the third party under heavy pressure; at the end of the sale, the third party's sales are often very low base, mainly by the sale of domestic helpers profit, In the absence of a product supply, it is difficult for small and medium-sized third parties to retain the sales team. The more serious problem is that, as small and medium-sized third parties are more difficult to establish a stable cooperative relationship with large trust companies and private equity funds, they have to work with private and small fund subsidiaries with weaker credit level, which leads to the first impact on the small and medium-sized three parties once the market appears credit risk.

Each industry has its own industry cycle. For the vast majority of industries, all need to experience from nascent, to barbaric growth, then to multifaceted, and then form a three-point industry pattern, for the third party wealth management in this industry, also is so. After the rapid development of the industry, must enter the shock adjustment phase, at this time, the large third party may also have the ability to adjust the strategy, withstand the winter, waiting for industry opportunities, but many small and medium-sized third parties, they may be difficult to adhere to the new round of the industry's strong cycle of arrival.

In the second half of 2014, will enter the real estate centralized payment period, even if the government financing platform does not consider the financing maturity, trust funds are still large. At the same time as large sums of money to expire, the problem of real estate financing is also concentrated. At present, the project is located in Shanghai suburb of non-hundred real estate enterprises, even if 432 complete and full value of the mortgage, financing still have difficulties.

In this market, how many enterprises will have problems? No one is known. But it can be foreseen that a third party will naturally be implicated once small real estate starts to suffer. While the CBRC stressed that the trust scheme had just been confirmed, some small trust companies need to have a question mark on their steel capacity, which, once the trust steel has been broken, will naturally be blamed for the third party selling the product. In addition, many third parties have sold a lot of limited partnership products, once the risk problem, the result may be only hehe.

In addition, along with the evolution of interest rate marketization, information asymmetry is gradually weakening, once the intermediary agencies can be between the project side and the funds to deal with the great spreads of the era is gone. Due to the full competition between intermediaries, real estate, government financing platform, industrial and commercial enterprises for the capital market enough to understand, they are for trust financing or trust financing of the cost of a pressure again, and the sales end of the customer's investment awareness is gradually enhanced, on the one hand, they demand High-yield products, on the other hand, the risk of controllable. In such a living environment, trust companies, fund subsidiaries, third parties, the original profiteering are not in.

Iv. Future Changes

Unconsciously, the third party's living environment has quietly changed, their traditional wholesale products, sales of products business model faces great challenges. In such a background, the third party must have profit growth to return to rational expectations, but also the "poor change" in the heart of preparation.

The transformation of the third party institution needs to evolve on the basis of its own resource endowment. First, in the original "cash cow" can still create profits, can continue to stabilize the organization in this respect profitability. At the same time, we need to dig deep into the value of existing resources and expand the business channel based on the resources endowment. In the next stage, if the third party still wants to occupy a place in the industry, it should be developed in three aspects: first, expand the private banking business; second, vigorously expand the asset management business; third, integrated financial products supermarket.

1. Private Banking

Since 2007, when the Bank of China began expanding its private banking sector, the number of private banking companies in 8 commercial banks has been more than million. After 7, 8 years of development, the domestic firm's private banking business has initially achieved from simple product sales to high net worth customers integrated services business transformation. Private banks have been conscious of starting to provide customers with "from Money to life" package of services, not only to provide customers with customized financial investment services, but also to provide customers such as education immigrants, luxury consumption, health pension, tourism and many other ancillary services. And this kind of comprehensive business model, is also the third party worth learning and development direction.

Although domestic private banking has a history of nearly 10 years, it is still in the early stages of private banking. At present, each firm has its own characteristics, such as the Bank of China in immigration, family trusts, foreign investment and so on have a clear advantage, and Citic Bank will focus on the comprehensive allocation of customer assets. Against the domestic third-party institutions, even the industry's leading boss Noah wealth, is still mainly in the traditional product sales as the main mode. But simple product sales, often rely on the personal ability of the Customer Manager, in the long run it is difficult to really improve the organization itself on the customer's stickiness. Therefore, in the next phase of the institutions to increase efforts to rob high net worth of customer resources, the third party must establish a multiple service system, to enhance the third party to the customer's comprehensive service capabilities, and effectively improve customer stickiness.

From another point of view, the multiple customer service model can also provide a more diversified and stable profit space for the tripartite organization. For example, institutions in the provision of high net worth customers travel, education, immigration, family trusts and other services, can be from the end of the service provider to charge the corresponding services. Or to provide customers with comprehensive asset allocation recommendations to assist customers to configure a variety of assets, so as a real investment advisers to charge intermediate fees.

2. Asset Management business

Although the private banking business is the development direction which many third parties can plan, but in the real industry evolution, the tripartite organization is more to put the transformation core in the class investment bank business. While the institutions are aware that the diversified services of private banks are the basis for future firm customers, the private business model cannot generate stable cash flows in the short term, is a costly and slow-moving business, and it is more of a cost center than a profit center at the moment. Therefore, to Noah, the leader as the representative of the first echelon of the third party organizations, have set up their own asset management companies, and actively expand the level of market operations. Noah has set up a song of Netherfield assets, and equity participation in the million win, and the New York Silver Fund subsidiary, it can be seen that the first line of the third party have to look for investment banking business license, and then the right to release the product is firmly in hand.

It can be foreseen that the next stage many have the strength of the third party, will certainly from the simple product sales, expand to the upstream of the industry, through equity participation or holding way to obtain investment banking business license, the product release end firmly in their hands. On the one hand, we can guarantee the stable product supply, on the other hand, we can enlarge our profit margin. While expanding the type of trust business at the same time, the three parties are actively expanding the various types of industrial funds products. Currently, the Fibonacci assets have been launched to set up a number of real estate funds, Heng-day wealth is cooperating with the trust to expand mergers and acquisitions fund products, good buy wealth also timely set up their own FOF products into the stock market two, and the regional three-party leaders have set up various industrial funds, all kinds of two-tier market funds, Deep excavation Active management End (project side) profit. It can be seen that the third party are using their own advantages, expand all kinds of active management business, and thus out of the original pure product sales business model.

3. Integrated financial Products Supermarket

Another direction, is bigger, do deep, do strong financial products sales This section, will be the original financial products sales business model upgrade, to create a professional, personalized, comprehensive financial products supermarket. At this level, there are a lot of directions to expand, and at least two development directions are being validated. The first large category, is on the one hand packaging products, on the other hand from other institutions a large number of wholesale products, thereby creating from equity to debt, from short to long-term, from low risk to high-risk comprehensive, integrated product line. To lead in this field, product line comprehensiveness and richness is the key to success or failure. In late 2013, Ping An trust's core sales team moved to Lujiazui Wealth, hoping to make the Lujiazui wealth into a large financial products supermarket, but at present, the effect is not very ideal. and good buy fund network, net such internet financial companies, in the building of financial products supermarkets have strong advantages. Dispatch in early 2014 also set up a wealth management center, Nuggets third party business, performance is worth looking forward to.

The second major category, is to build financial products production and marketing platform, the establishment of "flying single concentration camp." It at one end to maximize the domestic first-line financial managers to their own platform, the other end through the fund company subsidiaries, trust companies to open the channel, so that they release product information in this platform, by the financial manager of their own docking platform of various products, complete financial product sales. The core of this model is to fully tap the resources of the manager of the financial account, and use the platform to attract sales channels. In the continuous provision of financial managers for the platform dependence, adhesion process, enhance the platform's own competitiveness. Poly Trust, China Wealth Network, China Trust Network and other institutions, is currently such a model in the industry ahead of the company. Channels of the world, this type of in-depth contact with the bank account manager of the organization, if it can effectively stick to a group of qualified financial account Manager, the next phase will have a strong explosive force.

In addition, occasion is now in full swing of the internet finance, many it financial companies through the establishment of their own network marketing platform, the financial products slicing, scattered, reduce the initial subscription threshold, to attract the grassroots customer model is also one of the more common market patterns. The pioneer of such a model should be considered as a letter of wealth, it through peer-to-peer this regulatory vacuum system arbitrage, become the early market winners, and Alibaba, Baidu and other Internet companies will carry out such models.

The business model of how to smash and slice financial products and sell financial products through relevant innovative channels such as the internet is still worth looking forward to. In any case, such models are worth being used by the traditional third-party agencies, third-party institutions can be formed to the financial market "long tail" of the effective adhesion of customers (for this type of business model, the author will be in the "bulk finance" a detailed interpretation of the article).

V. Reflection

Looking back to the past life of a third party fortune company, we find that the context becomes clearer:

In the era of rapid growth in M2, a group after another group of entrepreneurs rich, the original bank finance has been unable to meet the needs of these high net worth people, the third party wealth management companies emerged. While in the third party, China also coincided with the rapid growth of real estate, trust companies on the wave of rapid large-scale, third-party agencies also on the trust expansion of the Dongfeng in the short term to complete the accumulation of capital. However, as the real estate enters the downward cycle, the government financing platform is in debt, the third party has to shrink the front and find a new breakthrough. Standing at the crossroads of choice, Noah left, bought right, some people began to expand upstream, some people gradually extend to the downstream, some people will sell to achieve the ultimate.

Third-party finance in this industry, every day there are old institutions die, every day there are new institutions born. Most of the early entrants of the industry completed primitive accumulation, take the lead in the industry in the winter contraction, transformation, and the late entry of the industry is not so lucky, they can only rely on sales of real estate, the project to solve the thirst, but want to live long, they have to find a new way out.

Some once famous institutions, perhaps in the next 2 or 3 years will disappear, and some industries new entrants, perhaps by virtue of their own resources endowment, leading the next phase of the industry trend. Times change too fast, today's prosperity can not decide whether tomorrow is dead, not good at rainy days, do not know how to implement efficiently, not clear the industry pain point of the organization, may become the next wave of the summit of the footnote. In the third party industry, if there is no constant change, it will only continue to perish.