Bank Offerings of Wealth Management Products: Market Innovations and Policy Guidance
The aim of financial services for the elderly are, in essence, to preserve and increase the value of retail customers’ retirement-earmarked assets through effective asset allocation so as to protect the quality of life of residents in their retirement age. Currently, retirement financial products provided by commercial banks are one of the most important tools to this end. China’s banking sector has had a late start in the offering of retirement-financing products, and at the regulatory level a standard product regulatory system has yet to be formed. Although some commercial banks have focused their efforts on bringing about innovative pension financing products, there is not yet a mature product system. To bring about further product development, we must first improve the top-level design of the system, develop product entry thresholds, and work more on the market positioning of such products as well as refine customer segmentation. Second, it is necessary to stimulate the vitality of the market by encouraging commercial banks to work actively at such products and to maintain an ample supply of such products at the front end while improving their professional investment management abilities at the back end. Third, we must create greater awareness of the importance of saving for retirement among residents, and guide them into purchasing wealth management products designed to finance old age care from the perspective of long-term asset allocation. Finally, we must promote the healthy and orderly development of the industry through the joint efforts of the government, regulatory authorities, financial institutions and individual residents.