The era of financial control is about to open

Original title: The era of financial control is about to begin

After nearly 20 years of sounding the stairs of the financial holding company, we are finally about to see the truth.

On June 4th, the Chinese peoplebankTwo copies published on the official websiteannouncementIt shows that China CITIC Co., Ltd. and China Everbright Group Co., Ltd. have accepted applications for administrative licenses to establish financial holding companies.

As early as 2002, the State Council approved CITIC Group, Everbright Group, and Ping An Group as the three pilot comprehensive financial holding groups. On September 17, 2012, the Central Bank, the China Banking Regulatory Commission and other jointly issued the “Financial Twelfth Five-Year Plan”, which stated that “to guide qualified financial institutions to actively and steadily carry out comprehensive operation pilot projects under the premise of clarifying comprehensive business strategies and effectively preventing risks. Improve comprehensive financial service capabilities and levels. Guide pilot financial institutions to choose an integrated financial industry operation model based on their own risk control capabilities and comparative advantages. Promote CITIC Group Corporation and Everbright Group Corporation to deepen reforms and become truly standardized financial holding companies.”

Seek full financial license

According to the “Decision of the State Council on Implementing the Access Management of Financial Holding Companies” and the “Trial Measures for the Supervision and Management of Financial Holding Companies”, the types of financial institutions include: commercialbank(Excluding villages and townsbank), financial leasing companies; trust companies; financial asset management companies; securities companies, public offeringsfundManagement company, futures company; personalInsuranceCompany, propertyInsuranceCompany, thenInsuranceCompanies, insurance asset management companies; other institutions recognized by the financial management department of the State Council.

At present, CITIC Co., Ltd. has five major sectors: integrated financial sector, advanced intelligent manufacturing sector, advanced materials sector, new consumption sector, and new urbanization sector.Among them, the comprehensive financial sector hasCITIC Bank、CITIC Securities、China SecuritiesSecurities, CITIC Trust, CITIC Prudential, have banking, securities, trust, insurance and other licenses, but the above companies also includeChina Asset Management, CITIC-Prudential Fund, CITIC Futures, Baixin Bank, CNCBFinancial management, CITIC Financial Leasing, CITIC Consumer Finance and other financial companies.

　　CITIC LimitedThe official website shows that the integrated financial services sector is committed to becoming a leader in integrated financial services. Taking the application for the establishment of a financial holding group as an opportunity to deepen the synergy between financial businesses, create a unified financial control platform, and strengthen and optimize financial segments, and strengthen The ability to serve the real economy.

Financial companies under the Everbright Group haveEverbright Bank、Everbright Securities, Everbright Trust, Everbright Insurance, Everbright Financial Holdings, Everbright Rent, Everbright Financial,Everbright Prudential Fund, Everbright Sun Life Asset Management, Everbright Securities Asset Management, etc.

PricewaterhouseCoopers believes that the core of financial control regulations is to clarify that if a non-financial enterprise actually controls two or more different types of financial institutions, it may be necessary to establish a financial control company. Due to the large scale of some local financial asset management companies, financial leasing, third-party payment institutions, and private equity funds, they may be classified as “other financial institutions recognized by the financial management department” and brought into supervision during the license application process.

At present, state-owned banks such as China, Agriculture, Industry, Construction, and Communications, as well as the four major asset management companies such as Huarong, Cinda, Oriental, and Great Wall, have their own securities, investment banking, insurance, leasing, and fund companies, and financial holding models Has basically taken shape. In fact, some joint-stock banks (or their parent companies) are also seeking to develop financial holding companies in a variety of ways.Such asShanghai Pudong Development Bank、Industrial BankParticipating in shares, controlling financial subsidiaries, andChina Merchants Bank、Ping An Bank, Guangfa Bank through China Merchants Group,Ping An of China、China Life InsuranceInsurance, indirectly seeking a full financial license, etc.

In November 2018, the “China Financial Stability Report” released by the central bank disclosed five financial holding pilot companies: China Merchants Group, Ant Financial, Suning Group, Shanghai International Group and Beijing Financial Holdings.

“The existing financial holding platform does not need to adjust the license, there are a total of 32 financial holding companies that need to establish a financial holding company.” PricewaterhouseCoopers is a financial holding company formed by non-financial companies as defined in the “China Financial Stability Report (2018)” Analyze the number of enterprise groups that meet the requirements for establishing a financial holding company. Since the scope of “other financial institutions recognized by the financial management department” still needs to be further clarified by the regulatory agencies, this time only the first five types of financial institutions that have been specified in the “Trial Measures for the Supervision and Administration of Financial Holding Companies” are summarized. The analysis found that there are 2 large enterprises, 12 central enterprises, 12 local enterprises, 5 private enterprises, and 1 Internet company that need to establish a financial holding company.

Why are financial institutions trying their best to create a financial full-license business model?

Take the bank as an example. In the banking industry, cross-selling proved to be a practical, reliable and effective way. According to bank data, customers who hold more than four products of a commercial bank at the same time have a churn rate of less than 1%.

How to establish an efficient cross-selling system? Some bankers said that the core of cross-selling is not the recommended product, but the recommended target. Understanding the customer’s personalized financial service needs, providing refined financial product portfolios and continuous services, and establishing long-term and effective asset management is the correct way to open cross-selling by commercial banks at this stage.

However, if the recommended target is an enterprise, the bank’s products cannot meet their needs. This is why many banks hope to apply for more financial licenses.

“In order to prevent systemic financial risks, separate operations are necessary at this stage. However, for an enterprise, it needs comprehensive financial services and integrated financial services. Therefore, coordination can effectively prevent risks. It is a prerequisite for risk isolation. Provide enterprises with a package of comprehensive financial services.”CITIC BankJin Xinian, President of the Guangzhou Branch, said that the financial subsidiaries of CITIC Group are taking advantage of the synergy of “one customer, one CITIC” to provide customers with one-stop, customized, multi-scenario, and full life cycle under the premise of legal compliance. Professional integrated financial services.

Build a firewall

The “Trial Measures for the Supervision and Management of Financial Holding Companies” implemented on November 1, 2020 clearly proposes a two-level risk management model for financial holdings, and requires the establishment of a capital replenishment mechanism and a risk isolation mechanism, and strengthened related party transactions and asset and liability management, etc. . It is particularly worth pointing out that it is proposed that the financial holding company can share customer information under the premise of legal compliance, risk control, and written authorization or consent from the customer, and standardize it by sharing sales team, information technology system, operation background, etc. Play synergy. Therefore, how to share or coordinate customer information will test the informatization level and legal compliance capabilities of the financial holding company.

“China’s financial holding group started in the period of reform and opening up. After more than 40 years of development, it has gradually formed a diversified business model with advantages such as economies of scale and synergy. It has played a role in improving China’s modern financial system and enhancing the overall competitiveness of the financial industry. Positive effect. However, due to the multi-level corporate governance structure and diversified business layout, the Financial Holding Group also faces difficulties such as high risk complexity, strong transferability, large superimposed effects, and serious information asymmetry. The difficulty of risk management is much higher than that For ordinary financial companies, it is difficult to directly apply the traditional management and control model.” On December 16, 2020, China Finance published an article signed by Li Xiaopeng, Party Secretary and Chairman of China Everbright Group.

The article pointed out that the current urgency and necessity of financial risk prevention and control are unprecedented. Everbright Group draws on advanced practice cases at home and abroad, based on its own operating reality and risk characteristics, and for the first time proposed the “three lines and four walls” comprehensive risk management and control system of the Financial Control Group: strictly abide by the “three lines of defense” of business operations, management support, and audit supervision, and build The “four firewalls” of strategy, system, system, and information.

The strategic firewall mainly focuses on the top-level design, guiding multi-level legal persons to closely focus on the group’s strategic leadership, focusing on the core business, and avoiding the risk of strategic deviation. The system firewall starts from a governance perspective and focuses on several key aspects: First, the organizational framework must follow the principle of “appropriate diversification of the group and professional operation of subsidiaries”, specialize in the technical industry at the subsidiary level, and strengthen coordination at the group level to avoid ” “Big Financial Control” sets the phenomenon of “Small Financial Control”; second, in the equity structure, it is necessary to form a clear and concise equity relationship, reduce the management radius, improve operation efficiency, and strengthen flat management; third, in the governance system, it is necessary to establish comprehensive coverage, With a rigorous and compliant authorization system, the Group Headquarters has focused on systemic important issues to build a governance system that adapts to the “Financial Control Measures”; fourth, in terms of governance capabilities, it must be brave to innovate and develop, conform to the country’s “dual cycle” development pattern, and continuously improve governance ability. The construction of an institutional firewall is a complex project that needs to be adhered to for a long time and cannot be accomplished overnight. The Financial Control Group should follow the regulatory requirements as a basic priority, prioritize the establishment of critical management systems, clarify the bottom line and responsibilities of risk control, strengthen the rational connection between the top and bottom, and finally build a practical, effective and comprehensive system firewall. The information firewall contains two sides, not only to promote the efficient and collaborative sharing of data of the Financial Holding Group, but also to ensure the safety and compliance of information sharing. Among them, security and compliance are fundamental, and the scope of information sharing, data usage, and confidentiality responsibilities should be determined in accordance with laws and regulations, and system and network security construction should be strengthened. On this basis, efficient collaborative sharing is the core. It is necessary to improve the timeliness and accuracy of data sharing and enhance the ability of data analysis. In order to solve the problem of data security sharing, Everbright Group has set up a digital collaboration laboratory, starting from key collaboration scenarios, innovating digital collaboration methods, and maximizing the value of data.

Digital drive

Digital technology is driving the rapid development of finance.

In the era of big data, data has become the core asset of individuals or enterprises, and the trend of data capitalization is obvious. Each subsidiary has its own data, and the data between departments are often stored separately and defined separately. The data of each department is like an island that cannot (or is extremely difficult) to connect and interact with other data within the enterprise.

“This is a data island.” The “Knowledge Federation White Paper” issued by Tongdun Technology Artificial Intelligence Research Institute pointed out that data islands are not only physical, but more logical islands. Every company will generate business data and need to store and use data. Different companies may have relatively large differences in the definition and use of data, so data between companies cannot be logically interoperable.

If the data island cannot be opened up, it will be difficult for the subsidiaries of the financial holding company to collaborate, and the data will be disjointed, which will inevitably bring about repeated collections and data redundancy. Even data consistency and correctness may not be guaranteed; The inability to effectively share and interact with the work module data will cause the value of the data to not be truly reflected, so that the decision-making support for the enterprise can only be empty talk. But opening up data islands poses new challenges to data security and privacy protection.

Currently, personal or corporate information assets including real estate, deposits, automobiles, insurance policies, etc. have becomeCreditOr the basis for various transactions. Simply sharing these data assets directly cannot protect user privacy. If the data cannot be shared, the data can be guaranteed to be invisible to the outside world, but it is also not conducive to the discovery of the economic value of the data.

The “Knowledge Federation White Paper” believes that extracting useful knowledge from data assets based on scenarios and opening and sharing knowledge is a reasonable solution to ensure the availability of data. This is asset knowledge. A new trend of data application can be seen from the capitalization of data and the knowledge of assets-whether data is available or not.

With the advancement of digital technology, the financial holding company is expected to provide customers with one-stop, customized, multi-scenario, and full life cycle professional comprehensive financial services under the premise of legal compliance. At present, both CITIC Group and Ping An Group are exploring to provide a package of financial services to corporate customers through the collaboration of their financial institutions. Jin Xinian believes that Ping An Group’s collaboration is a top-level design and has achieved certain results. CITIC Group’s advantage lies in finance + It is an industrial industry and has a full financial license. Its securities, funds, trust, futures and other companies have grown into market leaders.

　　Ping An of ChinaThe annual report shows that by the end of December 2020,Ping An of ChinaThe number of personal customers exceeded 218 million, an increase of 9.0% from the beginning of the year; 37.02 million new customers were added throughout the year, of which 36.0% came from Internet users in the group’s ecosystem;contractThe number was 2.76, an increase of 4.5% from the beginning of the year; Internet users exceeded 598 million, an increase of 16.0% from the beginning of the year.

　　CITIC BankThe 2020 financial report shows that synergy isCITIC BankOf a unique business card.As the largest financial subsidiary of CITIC Group, synergy is an important way to amplify CITIC’s comprehensive advantages and supportCITIC BankAn important force for strategic development.The unique advantages of “finance + industry” formed by CITIC Group for a long time and the unique genes of international development have laid the foundation forCITIC BankTo provide customers with the basis of “domestic + overseas” one-stop integrated financial services. In 2020, China CITIC BankCITIC Securities、China SecuritiesThe financial subsidiaries of CITIC Group such as Securities, CITIC Trust, CITIC Prudential Life and other financial subsidiaries of CITIC Group provided customers with a scale of 1,0788.2 billion yuan in co-financing, a year-on-year increase of 68%, breaking the “one trillion” mark for the first time.

(Source: Economic Observer Network)

(Editor in charge: DF062)