Ipsos White Paper │White Paper of HNW Clients’ Financial Consumption Habits and Financial Management Ability of China’s Financial Institutions
China Financial Planning Innovation and Development Forum 2018 hosted by Financial Money Magazine and Ebay Micro-finance was held in Beijing recently. As a global leading market research institution, Ipsos was invited with Jia Yanli, China’s finance research director, as the representative.
Participants in the Forum profoundly analyzed the innovation and development issues of China’s finance in the new era, and leaders of industrial financial regulation and industry association as well as specialists and scholars were invited to discuss the hot topics of transformation and upgrading of asset management and development of financial technology under the strict regulatory policies.
Bank of Beijing, Financial Money Magazine and Ipsos jointly released White Paper of HNW Clients’ Financial Consumption Habits and Financial Management Ability of China’s Financial Institutions 2018 in the Forum. The white paper was developed based on the survey data of 1,200 wealth clients of banks and other financial institutions as well as clients of private banks.
Survey shows that the structure of high net worth individuals (HNWIs) is changing quietly. The generations after 70s and 80s become the main group, the generation after 90s is making a figure, and the proportion of the generation after 60s decreases. Business owners, professional managers, professionals and persons from the entertainment circle are the main players, but the concentration ratio declines, with more extensive profession covering.
The size of financial asset influences the HNWIs’ purposes of investment and financial management. With the asset of less than RMB3 million, more people pursue better life and hope to improve the quality of life. With the asset of RMB3-8 million, people begin to consider about the inheritance of wealth, to provide better development environment for the next generation. With the asset of over RMB8 million, people focus more on promoting the enterprise development rather than personal life in financial management.
Over a half of HNWIs clients will continue to increase their investments in financial management in the future two to three years. Futures, family trust and overseas financial management have the highest growth potential, followed by trust, private placement, securities broker’s asset management and foreign exchange financing etc.
HNWIs clients have a low tolerance for financial institutions. If they are dissatisfied with the products and services, only 40% of clients can tolerate, give feedbacks and suggestions, and stay in the financial institution; 60% of clients will leave or reduce the investments.
The features of low concentration ratio and poor stickiness are shown when HNWIs clients use financial institutions, increasing the difficulty of services provided by financial institutions. Financial institutions shall pay more attention to the needs of HNWIs clients, focus on clients, and continuously innovate and improve the service to gain advantages in serving HNWIs clients!