On January 23, 2024, under the guidance of CITIC Financial Holding, 12 companies, including CITIC Bank, CITIC Securities, CITIC Construction Investment Securities, CITIC Trust, CITIC Prudential Life, CITIC Consumer Finance, CITIC Bank Wealth Management, Baixin Bank, Huaxia Fund, CITIC Prudential Fund, CITIC Publishing, CITIC Science and Technology, jointly held the "Financial for the People, CITIC Wealth Festival Annual Ceremony" for the first time, and Sina Finance, the APP of CITIC Financial Holding and CITIC Fortune Plaza were broadcast simultaneously.

This annual ceremony invited many economists at home and abroad, such as Ras Tweed, Kevin Kelly, Guan Qingyou, and joined forces with research experts in various fields of CITIC to discuss the topic of wealth management in the new era, put forward the perspective of the market in 2024, create an audio-visual feast with collision of ideas, and help people live a better life with professional services.

Figure: Wang Hongdong, General Manager of Wealth Management Department of CITIC Bank

Wang Hongdong, General Manager of Wealth Management Department of CITIC Bank, discussed in his keynote speech how to do a good job in personal wealth planning in the current era, and put forward the concept of "being the CFO of your own life". The concept is supported by a set of financial planning methods throughout the life cycle, known as the "three-step four step approach". Yuan Dongning, Deputy General Manager of Wealth Management Department of CITIC Bank, in his keynote speech "Digital Intelligence of Wealth Management Helps Inclusive Finance for All Customers", specifically introduced the roadmap of CITIC Bank to strengthen inclusive wealth management through upgrading digital intelligence services, and help customers to "be CFOs of their own lives" with technology and tools.

To be the CFO of your own life, four steps should be taken to do a good job in asset allocation

Wang Hongdong, General Manager of Wealth Management Department of CITIC Bank, pointed out that longevity is a beautiful thing and a gift given to mankind by this era. Longevity allows people to have more time to fulfill their dreams and enjoy the beauty of life. However, the gift given by the times also has a profound impact on social and economic development and personal investment. For example, pension spending will increase in the future, while the appreciation of financial assets may slow down. Therefore, everyone should be the first responsible person for their own financial health, and be the CFO of their own life.

Based on this, this year, CITIC Bank proposed the value proposition of "long life, be the CFO of your own life" and the allocation method of full life cycle financial planning, which is called "three-step four step method" for short. Wang Hongdong suggested investors to do a good job in asset allocation according to four steps:

Step 1: Balance revenue and expenditure. Reasonably plan the money to be used at any time to ensure "having money to spend at any time". It is recommended to reserve the necessary bill amount for 3-6 months. Since this part of capital is determined to be spent, it should take flexible withdrawal as the primary goal and give priority to liquidity and security, so it can be invested in "small change+", "live money+", monetary funds and cash wealth management products.

Step 2: Prevent risks. Scientific allocation starts with capital preservation. Deposit is the ballast of personal wealth. It is recommended to deposit a fixed deposit with capital preservation and income preservation first; After the "principal guaranteed money" is in place, a risk guarantee mechanism should be established to help transfer tail risks through a "guaranteed money", which is realized through insurance products such as accident insurance, serious illness insurance, and lifelong life insurance. It is suggested that the guarantee amount should cover "outstanding loans and debts" and "possible medical and other uncertain expenditures".

Step 3: Plan for the elderly. The individual pension reserve should be planned in accordance with the principle of "one check, two tests and three increases": first, check the reserved pension assets; Second, measure the pension gap; The third is to increase pension investment that can bring fixed income after retirement, such as buying a commercial pension annuity insurance to add a long-term cash flow equal to life, so as to achieve "money spent for a lifetime, money spent for a lifetime".

Step 4: Long term investment. Through the layout of the first three steps, the remaining funds can be safely distributed in equity assets with long-term value-added space. Considering that this is a long-term and fluctuating process, it is suggested to achieve long-term wealth appreciation by "doing a good job in the allocation of major assets, selecting excellent managers, long-term holding, and dynamic optimization". Wang Hongdong said that the "four step approach" is to optimize and upgrade the "four sums of money". First, it combs the logical sequence of personal asset allocation, then gives consideration to the current cash flow and forward cash flow, and also covers personal assets and personal liabilities, balancing the risk and profitability of investment.

Create a "three-way approach" to cover investment needs at all stages of life

From the perspective of life cycle, the investment demand of the same investor in different life stages is also dynamic. So, how can this difference be satisfied? Wang Hongdong's answer is "three-point method".

When we are in the life stage of 18-35 years old, our career is getting better and we begin to be able to pay for our interests. At this time, we should pay attention to the balance of income and expenditure. CITIC Bank has proposed the concept of "a healthy balance sheet" based on the theory of the latte effect, aiming to achieve the balance of assets and liabilities, and save "the first bucket of gold" for the future pension reserves.

When we enter the life stage of 35-60 years old, our business is in a period of rapid development, and the surplus funds are gradually accumulated. At this time, we should start pension reserves as soon as possible, not only to maintain and increase the value of wealth, but also to build a cash flow equal to life. Based on the psychological account theory, CITIC Bank proposed the concept of "a scientific pension account book", which aims to help the group in the golden age of wealth creation better hold on to the fruits of labor, and realize the steady appreciation of wealth and pension reserves.

When we enter the retirement stage of life, our income will decrease significantly. At this time, we should pay attention to the stability of investment. Citic Bank proposed the concept of "a happy old age" based on Maslow's demand theory, aiming to help customers achieve the sustainability of cash flow expenditure after retirement.

Consolidate the depth of inclusive wealth management and provide customers with instant tools

So, what form does CITIC Bank use to express its asset allocation methodology?

Wang Hongdong believes that "personal balance sheet" is a relatively intuitive form of expression, which is easy for most investors to understand and use. He said that at present, CITIC Bank has comprehensively upgraded its mobile banking system and launched a new version of 10.0. Through the panoramic view of the balance sheet, the system will put forward suggestions on asset allocation optimization according to the actual situation of customers.

Yuan Dongning, Deputy General Manager of Wealth Management Department of CITIC Bank, elaborated on the digital and intelligent transformation of wealth management of CITIC Bank in his speech, and specifically introduced "personal balance sheet" and other life wealth planning tools.

He said that to do inclusive wealth management, we should not only improve the supply of wealth management services for mass customers, but also strengthen the service depth of inclusive wealth management, expand the service breadth of inclusive wealth management, extend the service length of inclusive wealth management, and enhance the sense of wealth acquisition of mass customers through AI, big data and AI technology.

Referring to the life wealth planning tool provided by CITIC Bank, he said that customers can have a simple but powerful life wealth planning tool through the balance sheet function of CITIC Bank APP.

Broaden the service breadth of inclusive wealth management, and make it possible to respond to hundreds of millions of users in real time

At present, the development of cutting-edge digital technology, such as artificial intelligence, big data, AI algorithms, has become an important driver and engine for wealth management to enter the era of inclusive, profoundly changing the supply mode and ecological model of traditional wealth products and service systems.

Regarding the "AI+Finance" road of CITIC Bank, Yuan Dongning said that CITIC launched a new digital human wealth adviser in 2023, and completed the online deployment in the CITIC Bank APP, making it possible for professional wealth management services to benefit hundreds of millions of users.

He particularly introduced the uniqueness of CITIC Digital Wealth Advisor. First of all, it is an intelligent brain driven by investment research and technology empowerment. It pursues professional success and provides intelligent advisory services driven by investment research. Relying on the Retail Asset Allocation Committee+Fund Research Studio, it provides customers with more accurate product selection and configuration strategies through macro strategy, equity investment strategy, bond credit research, etc; At the same time, "Caigu" emphasizes technology empowerment, and agent agent driven by AI technology can realize the in-depth upgrading of digital people, Caigu in understanding ability, multi-function dialogue ability, etc.

In order to make the service of "digital people wealth adviser" more "intelligent", "accurate" and "warm", CITIC is focusing on the "three quotients" cultivation of digital people wealth adviser. First, it is to improve the ability to understand intentions, answer fluently and cultivate IQ; The second is to improve the ability of professional answers and effective suggestions to forge financial intelligence; Third, improve the ability to respond to friendly and emotional values, and expand emotional intelligence. Yuan Dongning said that only a digital wealth consultant who knows more about business and customers can become a new wealth management service channel that public customers want to use, dare to use and worth using.

Extend the length of inclusive wealth management services and practice full life cycle companionship

In addition, in order to practice high-quality companionship, CITIC Bank APP launched a member channel, built a CITIC Red R membership system, stood in the perspective of "full life cycle", accompanied customers' wealth life, and upgraded step by step.

According to Yuan Dongning, based on the integration capability of digital intelligence and the connection capability of super channels, CITIC Red R members have unified the classification and rating standards of CITIC Bank for all customers, unified the allocation of rights and interests of member grades, and unified the upgrading experience of members. After logging into the APP of China CITIC Bank, customers can visually see their identity tags, membership levels, grade rights, exclusive activities, localized activity recommendations, etc., providing customers with a wonderful experience of one-stop unlocking the popular courtesies and activities of China CITIC Bank. Not only that, customers can "browse" all member level rights and interests, provide "panoramic view", and give customers more motivation and reasons for upward growth. Banks can also improve the adaptability of wealth management services to customers' life cycle, life stage and important wealth goals, and provide customer service accuracy by implementing more sophisticated customer stratification.

Yuan Dongning also introduced credit products. He said that at present, CITIC Bank APP has converged multi-level and differentiated credit products, combined with the credit card center and Baixin Bank, integrated CITIC's consumer credit products, and built a new lending channel. It not only increases the number of credit products, but also uses digital and intelligent technology to reconstruct personal credit service capabilities and more intelligently recommend appropriate credit products to customers.

"CITIC Fortune Plaza" provides full cycle and full scene wealth management services

Finally, Yuan Dongning highlighted the "CITIC Fortune Plaza" embedded in CITIC Bank APP 10.0.

It is reported that in CITIC Fortune Plaza, customers can have a panoramic view of all their investment portfolios in the CITIC wealth system and enjoy the professional and convenient experience brought by the customer service system of "one CITIC, one customer". At the same time, relying on the openness of Fortune Plaza to link banking, insurance, securities, trust and other financial institutions, CITIC Fortune Plaza will continue to integrate the customer service experience and service model of "CITIC United Fleet" to provide customers with full cycle and full scene wealth management services.

The new balance sheet, the new "Happiness+" pension account book, the new digital human wealth adviser, the new CITIC Red R membership system, the new money lending channel and other wonderful services will be launched with CITIC Bank APP 10.0. Yuan Dongning said that CITIC Bank will continue to actively promote the digital and intelligent transformation of wealth management from the perspective of "popularizing the public and benefiting people", so as to improve the response speed and service quality to hundreds of millions of users and create an inclusive wealth management that benefits the people.

Source Bank of China

Edited by Liu Jing

Second instance Cheng Jiao

Third instance Chen Qianxi