• Excellencies for the press

Dealing with financial gains while meeting daily consumption needs has been a subject of interest to investors. Previously, Chinese security correspondents visited various banking networks in the Beijing region and found that petty cash products were being favoured by investors. A number of banks explore the “living” of investors’ bags and work to improve the efficiency of property exchange and to meet client demand for money.

Zero money was welcomed

“As a financial bride, it is not known how much money is to be spent on everyday consumption, and how much money is to buy. Less money was bought and the benefits were relatively low; more were purchased, even if the money was suddenly lost.” The small U, working in Beijing, selected the bank’s zero-money-consumer products after comparing the rate of return from petty cash and payment of surplus.

Previously, journalists visited a number of bank networks, such as the Beijing Regional Plateau Bank, the Wide Bank and the Bank for Industrial Development, and many client managers indicated to journalists that bank zero-cost sales of financial products were not good and that major groups of clients were customers who focused on financial flexibility. The low threshold for buying, flexibility and non-requirement of fees are the advantages of such products.

“I am making zero-cost purchases of property “intelligent” yuan renminbi, and the proceeds are calculated on a daily basis and are not charged. It can be quickly rebounded, real-time, to meet the daily liquidity needs of clients. The rate of return will generally be higher than the balance and zero, but will be based on actual gains.” A web-based client manager from the Bank’s Beijing region briefed journalists.

The official passenger service of the Bank of Plateau informed journalists about the mode of operation of such products, i.e., when the client became self-sustaining, when the bank card was used for consumption, transfer, credit card repayments, and if the active balance of the caeseteria was insufficient, the bank’s zero-cost property, the “starter” could be automatically returned to the counterparty to complete the transaction.

Wider payment scene

One of the characteristics of this category of product attracts investors is “addressing”. According to the industry, the logic of such products lies in “built purchase plus multi-view consumption of portfolios” and in providing customers with a different rate of return based on client-specific investment preferences and liquidity requirements.

For example, the Bank’s “intelligent” product corresponds to seven IMFs. Clients seeking higher returns may choose the “current yield priority” model, with a system giving priority to the selection of a single IMF with the highest annualized return rate for the current seven-day period; and more focused on financial flexibility, a “quick return priority” model, which combines the return rates of the IMF only and the current shunned distribution.

The Bank indicated that, for customers whose funds were frequently recorded, the “executive balance” function could be contracted to “exclusive self-regulation” as long as funds such as monthly salary income, self-employed income, zero-cost money were allocated to the savings card, without having to operate manually, the active balance of the account would automatically be transferred to “intelligent” yields and would enhance the efficiency of zero-cost investments.

The wealth of payment scenarios is another attraction point for this category of product. A bank staff member told journalists that the Bank was fully restructured into traditional systems of finance, payment, transfer, deposit, etc., so that customers could not only benefit from property, but also be tied to multiple payment instruments, ready for transfer, acquisition, consumption of POS, contribution to life.

Meeting client demand for cash management

The front line and optimization of zero-cost investment-based products is a contraction of bankable cash-based products. Since this year, some banks have continuously increased the efficiency of their financial transactions to better meet client demand for cash management.

In recent days, a number of fund companies, such as the Associated Bank, have launched the “living plus” consisting of 50 IMFs. It has been introduced that “living plus” provides large-scale cash management services to support real-time return of up to 500,000 yuan a day, on the basis of meeting the daily consumption use of clients. Access to “living plus” funds is more flexible. The “living plus” funds are not subject to fixed-term restrictions compared to fixed-term accounting, and are also paid on weekends and holidays.

Silvering indicates that the four recently managed “winning” series of tangible property has been the first to achieve efficiency gains in exchange, and the return of funds has been made from the original “T+1” date into “T+0.5” days. It is understood that the “T+0.5” day model refers to the fact that the counterpart funds may be returned to the investor-designated bank accounts at noon on the next working day, after giving instructions for rebalancing the products. Compared to the “T+1” model, investors’ funds can be exchanged more quickly. In addition, investors can reinvest on the same day to recover funds for property items, thus obtaining a one-day gain.

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