Money Weekly （June 22, 2009）
The Industrial Bank (IB) has launched fixed investment services for 140 different funds operated by 27 different fund companies. Clients can now make fixed investments in funds over the counter in bank branches or through the online banking service. The Industrial Bank has a total of 450 outlets operating under 41 branches in all of China's major cities. Fixed Investment services for funds are available in all of the bank's outlets.
An official from the Wealth Management Department of IB's Retail Banking Management Headquarters said “The minimum fixed investment in HuaAn Fund, Everbright Pramerica Fund and China International Fund is RMB 100, while most of the others are RMB 200 or 300.”
All New Mobile Banking Service Coming Soon
We are currently in the process of developing fixed investment in funds for our telephone banking and mobile banking services” The official told us in an interview. In line with its philosophy of putting clients first, the Industrial Bank has been quick to involve itself in the change to mobile internet, and will soon be launching a new version of its mobile banking service - “3G IB” (http://3g.cib.com.cn).The service will include more than 300 mobile financial services spanning 15 categories for retail clients.
Subscription fees for fixed investments via e-banking set at 0.6% from June 10
Much like normal fund subscriptions, the Industrial Bank only charges a subscription redemption fee for fixed investment funds purchased through its various services.
The Industrial Bank launched a bank-wide activity known as “Freely Investing, Free Wealth” on June 10, 2009. A preferential subscription rate of 0.6% for fixed investment in funds is offered once the service has been activated in e-banking. If the original subscription fees were lower than 0.6%, or if they are fixed fees, the original rates shall apply.
If the service is activated over the counter in bank outlets, a 20% discount will be offered on subscription fees, but the lowest fee is 0.6%. If the original subscription fees were lower than 0.6%, the original rates shall apply. Visit www.cib.com.cn for more information on the preferential rates for each fund.
Attempting to Establish a Partner and Product Evaluation Mechanism
In order to enhance the standard of sales and after-sales services, the Industrial Bank conveys large amounts of specialist market information and product information to salespeople under the framework of cooperating with fund companies and fund research institutions. This data helps sales personal communicate with clients more effectively. The bank also sends the Unionpay E-journal to quality clients of Unionpay on a regular basis.
In addition, the bank is making efforts to develop a rationally designed partner and product evaluation mechanism by which it selects high quality partners on the basis of their credentials and level of cooperation with the bank. Key partners are all renowned fund companies boasting comprehensive product ranges and excellent performance, such as Huaxia Fund, AEGON-INDUSTRIAL Fund, HuaAn Fund, China International Fund, GF Fund and Everbright Pramerica Fund.
Multiple Encryptions in Internet Banking Ensures Security
Transaction safety is an issue that has drawn a great deal of attention. The Industrial Bank has been trying-out different ways of improving security.
“We have taken dozens of security measures, including binding with mobile phone number, preset message authentication, double certification of login password and transaction password, multiple encrypted data transmission (standard 256 bit SSL encryption algorithm), bank server end VeriSign Certificate certification, transfer amount limitation, SMS notification of account activity and additional picture verifying code.” An official from the Wealth Management Department of IB's Retail Banking Management Headquarters said.
24-Hour Services Every Day for 400,000 Clients
The Industrial Bank is a veteran in the fund marketing field. It launched “Bank-Unionpay Fund Supermarket” as early as 2004, which has gained many loyal clients due to its product diversity, preferential fees, quick and easy transaction, controllable risks and 24 hour services.
An executive official from the Wealth Management Department of IB's Retail Banking Management Headquarters said that “Bank-Unionpay Fund Supermarket” has about 400,000 clients at present, marketing over 300 funds from 50 fund companies on a commission basis. Fixed investment in funds is one of the major future directions of the bank's fund commission business.
“Bank-Unionpay Fund Supermarket” to Launch Fixed Investment in Second Half of Year
The Industrial Bank launched the “Bank-Unionpay Fund Supermarket” in August 2004. With the IB “Natural Life” Family Wealth Management Card, personal investors may open accounts, buy, subscribe, redeem funds and receive dividends on fund company websites, IB's Internet bank or the Unionpay company website.
The business has gone from a small hand-full of funds from less than 10 companies to the over 300 funds from 50 fund companies seen today. In the second half this year, the “Bank-Unionpay Fund Supermarket” will launch fixed investment in funds to meet investor demands for long-term investment and risk spreading.
Strategy: Focus on core products, gather quality products and seek out unexpected performers
In order to meet the diverse requirements of investors, the Industrial Bank has established a strategy of “focusing on core products, gathering quality products and seeking out unexpected performers”, which is based upon the feature that products with brand advantages are highly recognized.
“We will introduce new funds with brand and product advantages to provide investors with more choices” the official said.