Digitization of wealth management is imperative for banks

Insights from Chen LiuSenior Vice President of Bairong Inc. on banks’ shift from an MAU-led to an AUM-led approach to digitalisation

BEIJING, August 15, 2022 /PRNewswire/ — Bairong Inc. (“Bairong” or the “Company”, 6608.HK), a leading independent AI-based technology platform in Chinacalled banks in China to accelerate the digitization of their wealth management businesses to meet growing demand from thriving middle-class families.

It is expected that the total assets of the personal wealth management in China will grow by 10% annually from 2021 to 2025, according to a study published by McKinsey.

“With the rapid development of AI, 5G, blockchain and virtual technologies, the financial industry must use cutting-edge technologies for digital transformation and it is imperative for banks to digitize their wealth management business as the market undergoes significant changes,” I said. Chen Liusenior vice president of Bairong at a recent industry event in Qingdao, Shandong Province.

Digital capabilities have become a key driver for financial institutions to drive wealth management business. Digitization of services will drive total wealth management assets to increase by 25% to 50% and help financial institutions increase revenue by 15% to 30% and profits by 25% to 50%, according to a Boston report Consulting Group.

As banks in China are racing to transform their businesses with digital technologies, monthly active users (MAU) has become the main objective in the last few years and almost everything in banks has been mobilized to achieve the MAU target, including sales and marketing, operations, procedure, management of risk and organizational structure.

“Over the next decade, assets under management (AUM), rather than MAU, will become the primary objective for banks in China,” said Chen Liu. “This shift in purpose will have significant implications for banks in their strategic planning, sales and marketing model, operations management and even corporate culture.”

Facing the new trend, financial institutions will need to use digital technologies to expand services, reduce dependence on star managers, expand customer reach and improve collaboration efficiency, which will help them achieve both MAU and AUM the goals, they added Chen Liu.

With the leading technology platform to empower financial institutions, Bairong is committed to supporting the digital transformation of of China the financial industry. With intelligent analytical services and solutions covering the entire business process, Bairong’s customer base includes most state-owned banks, regional banks, consumer finance companies and major insurance companies. By the end of the first quarter of 2022, the Company had provided services to 5,900 FSP customers in Chinaincluding 3,501 paying FSP customers.

About Bairong Inc.

Founded in March 2014Bairong is a leading independent AI-based technology platform in the China serving more than 5,900 financial service provider clients. Bairong was the largest independent provider of financial big data analytics solutions in the China. Adhering to the mission of empowering every financial service provider China with intelligent and comprehensive data analytics, Bairong has built a cloud-based technology platform that supports the full business cycle of FSP customers, including data analysis, decision support and intelligent solutions for user operations, enabling them to improve the ability to manage risk, promote user activity and operational efficiency. Bairong also provides big data marketing and distribution services that enable FSP customers to reach and serve their target customers more effectively.

For more information, please visit Bairong.

SOURCE Bairong Inc.

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