Recently, the news that China Development Bank Securities sold 90% of its sales offices in one breath has attracted the attention of the industry. Although it is common for brokers to abolish sales offices and branches in the industry, it is still quite rare for brokers to start such a ruthless. Some insiders pointed out that CDB Securities’ move is behind the company’s strategic transformation or cost considerations, but on the other hand, it is also a microcosm of the current changes in the functions of the brokerage business department.
Earlier, the brokerage business accounted for a relatively large proportion of the brokerage’s main income. In order to seize the share, brokerages also raced to compete and set up sales departments or branches across the country. It can be said that at that time, the sales Contributions to the development and growth of China are indispensable. However, in recent years, under the tide of the transition from brokerage business to wealth management business, the functions of the brokerage business department have also quietly changed, starting to shift from the traditional heavy trading model to the service heavy, and light or new business departments may become mainstream in the future.
Brokerage “clearance style” sales sales department
Or for these reasons
On November 16, the Beijing Financial Assets Exchange posted a message that CDB Securities intends to transfer the assets and related rights and interests of its nine business departments at a price of RMB 72,957,700. According to public information, the total number of business departments under CDB Securities is 10, in other words, CDB Securities intends to sell 90% of its sales offices this time, which is almost a “clearance” deal.
According to the transfer information, the 9 business offices that China Development Bank Securities intends to transfer are located in Beijing, Tianjin, Baoding and Shanghai. The transfer price is RMB 72,957,700. In addition, 7 of the 9 sales offices transferred this time have been established for a long time, at least more than 7 years.
Such a “heavy hand” has naturally attracted the attention of the industry. Although the abolition of the sales department is not new in the securities, under the epidemic situation at the beginning of the year, many brokerages have also adjusted their branches and sales departments, but it has to be said that 90% of the sales under the one-time “package sale” The brokerage of the Ministry is still very rare in the industry.
So, what are the considerations for China Development Bank Securities’ move?
“The abolition of the sales department is mainly due to the consideration of reducing costs and increasing efficiency. The competition in the industry has become fierce, and the brokers who have always been considered by the market to be rich in money do not dare to spend money randomly. The sales department that cannot create obvious value for the company will definitely be Abolition. In addition to the direct cause of cost reduction, the abolition of the business department also reflects a deeper strategic change in the securities industry. With the empowerment of financial technology, the continuous advancement of onlineization has made it convenient for customers and saved brokerage costs.” Beijing Yizhong Insiders of the brokerage said.
A related person in the Fed’s securities brokerage business told reporters that a few years ago, major brokerages laid out a large area of offline outlets. With the transformation of business models to online, it is normal for offline outlets to be cancelled. Necessary for the normal operation of the brokerage.
The relevant person in charge of Guojin Securities said that in the past, the abolition of the business department was more due to poor management and the closure of the store. In this case, the package sale of the business department reflected the result of the brokerage’s initiative to make strategic transformation and focus on institutional services. According to the country’s overall plan, in the future, there will be aircraft carrier-level leading brokerage firms. Therefore, cases of mergers and reorganizations among brokerage firms should not be new. “In the future, each brokerage firm chooses not to do anything, how to make a differentiated competitive advantage and avoid falling into the quagmire of the price war of homogeneous competition, which may be a problem that every brokerage firm needs to think about.”
From heavy transaction to heavy service
The functions of the brokerage business department quietly changed
Despite the company’s strategic transformation or cost considerations behind the sale of 90% of the sales department of CDB Securities, from another perspective, it is also a microcosm of the current changes in the functions of the securities business department.
A few years ago, the traditional sales department played an important role in the securities dealers’ race-staking. Under the pressure of competition to seize market share, the establishment of sales departments and branches across the country became an inevitable choice for most securities companies. There are more and more of them, and more of them show a trend of “heavy duty”. It can be said that at that time, the brokerage business department contributed to the development and growth of its brokerage business. However, in recent years, the functions of the brokerage business department have quietly changed, and they have begun to transform into a light or new type of business department.
An insider of a medium-sized brokerage firm in Beijing said, “Many functions of the traditional sales department, such as transactions, can already be realized online. From the customer’s operating habits, fewer and fewer people are willing to go to the sales department for on-site transactions. To attract customers, it is necessary to provide more characteristic services.” In his view, the positioning of the sales department should complement online services and provide customers with high-end, differentiated, and online services that are difficult to achieve and satisfy. Some sales departments can even be built as ‘image shops’ to function as brand maintenance.
The above-mentioned Fed securities brokerage business person also said that at present, the business department is the business promotion terminal, customer service terminal, and experience display terminal of the brokerage. A relevant person from a brokerage firm in East China said that since the beginning of this year, the brokerage business department has switched to online business. This has not only tested the online services of brokerage firms, but also made more brokers think about the necessity of offline business departments.
“In the post-Internet era of today’s brokerage firms, especially after experiencing the test of the epidemic, the onlineization of customers’ various counter services and regular services has become a general trend, and the original counter-handling functions of the sales department will gradually weaken.” , Said the above-mentioned person in charge of China International Finance Securities. It said that the main functions and positioning of the sales department may be transformed into four directions, one is the outlets that receive high-net-worth customers. Some customers, especially high-net-worth customers, often need to be customized for their individual needs, or the financial products they purchase are more complex, and it is difficult to complete the purchase online, so face-to-face communication with customers in the sales department. It is a more effective way of communication. The second is a place for communication between customers. Through holding salons, seminars, etc., customers and employees, customers and customers form a good interaction, and increase the customer’s dependence on the company. The third is the local promotion network of tools and products. “As the saying goes, “The smell of wine is also afraid of the deep alleys.” After the company headquarters has good tools and products, it often needs to be promoted offline to realize the popularization of applications.” The fourth is the function of brand promotion. In his view, the sales department outlets are to make customers feel that there is a place that they can see and touch offline. When they have problems, in addition to online customer service, there is also an offline outlet to provide services to customers at any time. Will make customers feel better.
It can be seen that the current brokerage business department has gradually shifted from the traditional heavy trading to the service-oriented direction. Especially as the brokers are transforming to wealth management, the investor experience is more important. Insiders of a medium-sized brokerage firm in Beijing said that the C-type sales department may become the mainstream in the future. Compared with the traditional A-type business department and the B-type business department that can provide some on-site transaction services, the C-type business department neither provides on-site transaction services, nor does it need to be equipped with corresponding computer room equipment, which is in line with the trend of light assets.
The relevant person in charge of Ping An Securities also stated that the current investment advisory teams of the branches of each business department provide face-to-face services to customers in the region at the business outlets. “In fact, only a small amount of face-to-face, most of which provide services through corporate WeChat and on-site salons. This layer combines and connects standardized, high-quality services and personalized and warm services.”