The Professional Ecology of Chinese Financial Planners 中国理财师职业化生态 2017

Transcription

1 The Professional Ecology of Chinese Financial Planners 中国理财师职业化生态 2017

2 WILLIAM XIA(CFP CM,Australia) The Board Chairman, China Joint Forum for Professionalization of Financial Planners Founder & CEO, AOW Financial Services A B C

3 WILLIAM XIA(CFP CM,Australia) The Board Chairman, China Joint Forum for Professionalization of Financial Planners Founder & CEO, AOW Financial Services

4 ~ August 31,2017 Read by: 12,500 persons Valid Samples: 4,597

5 38.65%: 61.35%

6 SAMPLE DISTRIBUTION BY LOCATOIN ILL-1:Sample distribution by location(sample Size 4,597) 5.66% 2.44% Eastern Provinces 7.68% Western provinces SAMPLE DISTRIBUTION BY LOCATION (Sample Size 4,597) District Number Proportion 9.83% Central Provinces Eastern % North Eastern Provinces Other Western % Central % 74.40% North Eastern % Other % Eastern Provinces:including Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, Hainan, total 10 provinces (cities); Central Provinces: including Shanxi, Anhui, Jiangxi, Henan, Hubei, Hunan, total 6 provinces; Western Provinces: Including Inner Mongolia,Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shanxi, Gansu, Qinghai, Ningxia, Xinjiang, total 12 provinces(cities Autonomous Regions); North Eastern Provinces: including Liaoning, Jilin, Heilongjiang, total 3 provinces.

7 SAMPLE DISTRIBUTION BY INSTITUTION Sample Distribution by Institution (Sample Size 4,597) Institution Quantity Proportion Banks % Independent Wealth Management Co % Securities Firms % Insurance Co % Fund Management Co % Other % Independent Financial Planning Studio % Internet Finance Co % Trusts Co % Future Co % Asset Management % Total %

8 Contents 1 The Characteristics of Early Development Stage 2 The Positive Side of Chinese Financial Planners 3 What are they thinking? 4 Where are we going?

9 1 The Characteristics of Early Development Stage Young and well educated financial planner group Under % Over % Professional Certificates Certificates Quantity Proportion AFP % CFP % % CHFP % CPB % RFP % CFA % EFP % % Other % No Certificate %

10 Chinese financial planners are relative young, but the echelon effect is under formation, the growth of the group is proportionally steady. Compared with financial planners in developed countries, there is still room for Chinese financial planners to catch up. The industry is in its early stage of development. Educational Background of Sino-US Financial Planners Country Degree Under Bachelor Bachelor Master PHD or over Other China 10.80% 78.20% 10.70% 0.30% - USA 1.26% 63.09% 27.96% 3.76% 3.91% An university undergraduate (or graduate) in China may not hold the corresponding degree. Other under USA refers to those who did not specify their educational background. The sample size in China is 4,597 The sample size in USA is 77,784

11 1 The Characteristics of Early Development Stage Less than 7% of the institutions charge consulting fees,there is still a long way toward professional financial planning consulting service 8.80% 6.43% Only 6.73% of the financial planners 33.75% claim:their employer provide fee-based 14.63% financial planning service Only 3.13% of the financial planners from banks claim they provide fee-based financial planning service 26.39% Independent Financial Planners Securities Company Fund Management Company Independent Financial Planning Institutions Insurance Company

12 1 The Characteristics of Early Development Stage Almost half of the financial planners are serving over 100 clients,while only 30% planners claim that the proportion of their long-term clients (over 3 years) are above 30% Clients Base Numbers(Sample Size 4,597) 23.36% Percentage of Long-term Clients(over 3 years) (Sample Size 4,597) 48.12% Percentage of Long-term Clients Less than 3 years' working experience Percentage 26.67% 15.34% 10% & under 19.95% 11-30% 23.49% 31-50% 13.42% 13.18% Over Under 20 51% & over 16.47%

13 1 The Characteristics of Early Development Stage nearly 80% financial planners work overtime,70% are earning under 200K($30K) The survey shows that 84.6% of the financial planners are not satisfied with their income;but 58.71% are confident that the situation will improve gradually;and 25.89% hope to get immediate improvement. Sample Distribution by Working Hours Working Hours Proportion 6-8 hours 21.51% 8-10 hours 54.17% hours 19.97% 12 hours & above 4.35%

14 1 The Characteristics of Early Development Stage Only 40% of the financial planners feel confidence in their professional knowledge and skills. Sample Distribution by Self-Confidence in Financial Planning Skill(Sample size 4,597) Diffident 6.30% Very confident 39.76% Normal 53.93%

15 Contents 1 The Characteristics of Early Development Stage 2 The Positive Side of the Wealth Management Industry 3 What are they thinking? 4 Where are we going?

16 2 The Positive Side of the Wealth Management Industry Market is booming : There are financial planners in all kinds of financial institutions, while the majority are in the bank

17 2 The Positive Side of the Wealth Management Industry Market is booming: Financial Institutions are able to supply a variety of financial products, hence increasing financial planners client-serving ability Quantity of Financial Products provided by Institutions(Sample Size 4597) Insurance 80.3% Fixed-interest Trust & Asset Management Plan Bank Financial Products 73.02% 72.54% Mutual Fund 65.06% Privately Offered Fund 48.01% Other PE Fund 37.07% 1651(35.90%) Securities & Futures 892(19.40%)

18 2 The Positive Side of the Wealth Management Industry Over 60% of financial planners have encountered Poaching,while most planners do not change their job frequently Sample Distribution by Number of Former Employers(Sample Size 4,597) Over 5 Institutions 0.87% 4 Institutions 1.15% 3 Institutions 6.63% 1 2 Sample Distribution by Number of Former Employers(Sample Size 4,597) Institutions 20.60% Institution 70.74% Over

19 2 The Positive Side of the Wealth Management Industry Over 60% of financial planners have encountered Poaching,while most planners do not change their jobs frequently. Sample Distribution by Type of formeremployers(sample Size 4,597) % 80.00% 70.00% % % 40.00% % % % 12.36% 9.55% Bank Insurance Securities Independent Wealth Management Company 4.46% 4.00% PE Internet Finance Company 2.55% 2.48% 1.39% 1.07% 0.70% Futures Trust Independent Financial Planning Studio Asset Management Mutual Fund 10.00% 0.00% Number of People Percentage

20 2 The Positive Side of the Wealth Management Industry Most Financial planners have confidence in the brand name of their employer, while almost half planners think their products are competitive Confidence Level in Brand Name of Employer(Sample Size 4597) Negative Influence 9.79% Self-appraised Competitiveness of Products(Sample Size 4597) Weak 7.57% Very Strong 16.08% Good 39.70% Building up Confidence 50.51% Normal 47.51% Strong 28.84%

21 2 The Positive Side of the Wealth Management Industry 30% of the planners are managing over 100 million managed funds,over 50% of the planners are serving clients with average investable assets between 0.2 million and 1 million Sample Distribution of Average Investable Asset per Client (Sample size 4,597) 3.01 M-10 M 10.90% Over 10 M 3.79% Below 0.2 M 17.69% 1.01 M-3 M 16.90% 0.21 M-0.5 M 27.45% 0.51 M -1 M 23.28%

22 2 The Positive Side of the Wealth Management Industry With increasing extensive client activities,financial planners are becoming the main force of client financial education Proportion of Clients with Strong Financial Planning Awareness(Sample Size 4,597) Proportion of Clients with Strong Financial Planning Awareness Proportion Client Activities Carried Out 15.08% Under 10% 34.13% 11%-30% 39.26% 31%-50% 16.86% Above 50% 9.75% 55.21% 29.72% Most financial planners think their clients do not possess strong financial planning awareness. Over 10 times 5-10 times Under 5 times

23 2 The Positive Side of the Wealth Management Industry Profession traning systmen is formed: Educational background is the stepping stone, occupational qualification is the ticket, Professional Certificate is the ID Sample financial planners with occupational qualification:95.48% Sample financial Planners with one or more professional certificates:76.28% Sample financial planners with financial planning certificates:79.40%

24 2 The Positive Side of the Wealth Management Industry Most institutions provide internal training,external training are much appreciated Sample Distribution by Appraisal of Internal Training (Sample size 4,597) 34.70% 13.40% Sample Distribution by Acceptance of Self-paid External Training(Sample size 2,112) No 22.59% 51.90% Scarcely any training Frequent training,but little help for work Frequent training, help in work Yes No Yes 77.41%

25 Contents 1 The Characteristics of Early Development Stage 2 The Positive Side of the Wealth Management Industry 3 What are they thinking? 4 Where are we going?

26 3 What are they thinking? Financial Planners Perception of Client Relationship Main Reason of Client Complain(Sample Size 2108) Clients have biased perception of financial products 44.45% Misleading sales by financial planners 27.42% Ability or integrity of product managers 16.03% Design of financial products 9.20% Other 2.90%

27 3 What are they thinking? Most financial planners lay emphasis on client needs subjectively Factors Considered when Making Recommendations(Sample Size 4,597) Client's Need 74.23% Client's Direct Demand 74.21% Employer Requirements 62.49% Commission Rate 24.81% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%

28 3 What are they thinking? Generally under pressure due to performance requirements,but most financial planners can still cope Sample Distribution of Performance Pressure by Proportion(Sample Size 4,597) Low Pressure 7% Sample Distribution of Performance Pressure by Number(Sample Size 4,597) Stressful & Unable to Cope 24.34% Stressful but Still Can Cope 3156 Stressful & Unable to Cope 1119 Stressful but Still Can Cope 68.65% Low Pressure 322 Low Pressure Stressful but Still Can Cope Stressful & Unable to Cope

29 3 What are they thinking? Diversified opinion regarding the profession,while more than half of the financial planners intend to stick to the profession Sample Distribution of Intention to Quit(Sample Size 4597) Overall Bank Independent Wealth Management Co. Securities Insurance Fund Independent Financial Planning Studio Intention to Quit 43.60% 55.00% 22.96% 28.77% 15.00% 41.86% 11.90% No Intention to Quit 56.40% 45.00% 77.04% 71.23% 85.00% 58.14% 88.10% Sample Size

30 3 What are they thinking? About 40% of the financial planners wish to start their own businesses, partnerships and independent financial planning studios are preferred Sample Distribution of Intention to Start Own Financial Planning Business(Sample Size 2114) Own Business, 2.51% Yes, 40.02% No, 57.47%

31 3 What are they thinking? About 40% of the financial planners wish to start their own businesses, partnerships and independent financial planning studios are preferred What Type of Organization is more likely to succeed(sample Size 2115) Partnership Associates Independent Financial Planning Studio Company Other Every Structure has a chance to succeed Independent Financial Planning Institution Mixture Membership Based Financial Planning Club Strong Regulatoin Needed Hard to say Family Office Clients may have concerns about Shareholders with Strong Background, Organized Independent Financial Planning Financial Institutions

32 3 What are they thinking? Expecting diversified remuneration model,consulting fee may become a new income source 35.00% What type of remuneration model suits you better?(sample Size 2113) % 28.60% % % % 15.00% 14.20% 15.20% % 8.10% 7.70% 9.60% % % Fixed Salary Comission Consulting Fee Fixed Salary, Consulting Fee Fixed Salary, Comisson Comissoin, Consulting Fee Fixed Salary, Comission, Consulting Fee 0

33 3 What are they thinking? On-line financial planning model is generally accepted,while it is not considered possible that Robo-Advisor can replace human Oponion On the Development of Robo-Advisor 9.40% 41.43% 12.53% 35.79% Though still in development, definitely will replace human Still in the early stage of development, totally unable to replace human Only used as tools to increase efficiency, can not replace human Strong competitiveness in the area of standardised financial products, will replace junior hunam-advisor

34 3 What are they thinking? Over 60% of the financial planners highly anticipate specific regulatory measures Opinions on Regulatory Measures(Sample Size 2124) Dificient in regulatory measures on financial planners' behavior 40.20% Dificient in regulatory measures on financialservice-providing institutions 47.41% Regulatory measures are sufficient 37.43% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00%

35 Contents 1 The Characteristics of Early Development Stage 2 The Positive Side of the Wealth Management Industry 3 What are they thinking? 4 Other more

36 4 Other more Profiling of Successful Financial Planners Diversified perceptions by Location Companies Working experience Successful financial planners 'career development path

37 Conclusion The Chinese wealth management industry is still at the early stage of development,we can see the attributes and problems typical for this stage. For example, only very few companies provide fee-based service to the clients,young practitioners are under huge working pressure for selling products, lack of longterm clients, etc. With 10 years development,the industry has laid a solid foundation.for example,we now have a large variety of products, the demand for professional financial planners is huge, the financial planners education & training system has taken sharp, the planners also have strong willingness to hone their skills and competence, and there are more and more HNWCs. The industry is seeking new direction and regulators strategic leadership.

38 中国理财师职业化发展联合论坛 欢迎您! 2017 年 12 月 18 日 上海金融信息中心

39 Thank You!