Small and medium banks have changed their liabilities
In fact, the development of deposit products on Internet platforms by some small and medium banks has indeed made up for the problem of insufficient deposits. From the data point of view, after absorbing deposits through the Internet platform, the deposit scale of some small and medium banks has increased rapidly, and the deposit scale of some of the above-mentioned small and medium banks has soared.
A reporter from China Business News found that at the end of 2019, the scale of customer deposits of Huatong Bank was about 7.077 billion yuan, while its customer deposits at the end of 2018 were only about 1.436 billion yuan; the balance of personal time savings deposits of Huarui Bank at the end of 2019 was about 60.61 100 million yuan, only 88.313 million yuan in 2018.
However, the increase in the scale of deposits will also bring corresponding risks. Sun Tianqi pointed out that small and medium-sized banks will inevitably pursue high-yield assets and match high-risk projects, leading to increased asset-side risks.
“Because the cost is too high, only a small number of banks with a relatively weak customer base, fewer branches, and the impulse to develop quickly will use this method.” Zeng Gang, deputy director of the National Finance and Development Laboratory pointed out. In the long run, excessive dependence on Internet deposits is not conducive to the development of banks. In the short term, rapid expansion of scale through this method will result in higher capital costs and high risk of asset preference, which is not conducive to the steady operation of banks.
In addition, Internet platforms have high sensitivity to deposit interest rates, low customer stickiness, and deposit stability far lower than offline outlets.
“The customer recognizes the platform, not the bank, which means that if other banks have higher returns on this platform, the deposits may be transferred to other banks. Therefore, this type of deposit does not have savings deposits as core deposits. Zeng Gang said that the short-term expansion of Internet deposits actually accumulates a lot of liquidity risks. If large-scale deposit relocation occurs on the Internet, it may affect the long-term stability of the bank.
It is a big problem that the asset side cannot be invested
At present, the removal of Internet deposit products has little effect on ordinary users who have already handled related businesses, and they can still operate in accordance with the normal process. However, users who have not handled related services can no longer use such services.
From the perspective of the cooperation model, some small and medium-sized banks collect deposits on the Internet platform at high interest rates and pay a “diversion fee” to the platform. Generally, banks pay the platform based on two to three thousandths of the average daily deposit balance of the platform. Fees are settled monthly or quarterly.
After the removal of Internet deposit products, what impact will it have on relevant small and medium banks and Internet platforms?
On the whole, although deposit products launched by internet financial platforms have facilitated consumers to enjoy deposit services, internet deposits are not a sustainable development model. The customer stickiness brought by such products to banks is not high. Although in the short term, the strengthening of supervision will restrict the development of these banks, in the long run, it is conducive to the steady and sustainable operation of the banks.
Wang Yifeng believes that Internet deposit products exist as a third-party platform’s product system. After the third-party platform is removed, there will be no longer-term products on the third-party platform, which will have some impact on the richness of product shelves. However, customer stickiness has not disappeared, and third-party platforms may not be subject to too much impact. For individual banks, banks with low market recognition and weak customer base systems will indeed be greatly affected, and their development speed will slow down, but they can Reducing the bank’s own operating risks will help control the cost of liabilities, stabilize funds, and reduce liquidity risks.
Zeng Gang suggested that such small and medium-sized banks should correct their development concepts and explore long-term and sustainable growth paths under the existing financial framework. They should reduce their scale preference and consolidate their customer base, and improve their comprehensive income through diversified services. , Improve customer stickiness.
“At present, some banks are high interest rates for deposits, but whether the asset side can be used out is a big problem. If the asset side does not have a corresponding good return, it will have a negative impact on the profitability of the bank. In fact, most small and medium-sized Banks are unable to invest if they have a lot of money. Some banks have begun to actively reduce the scale of medium and long-term deposits.” Zeng Gang said.