Economic Daily: Replacing price "involution" with financial services competition

Gelonghui, February 28 — An article in the Economic Daily points out that since the beginning of the year, banking wealth management institutions have launched a “fee reduction wave,” with some wealth management products showing “double zero” rates for investment management fees and sales service fees. This “fee reduction wave” reflects the increasingly fierce market competition faced by bank wealth management products in a low-interest-rate environment. In the face of low interest rates, fee reduction is only a temporary measure. Attracting and retaining customers ultimately depends on high-quality development. On one hand, there should be strengthened regulation and guidance for the high-quality development of bank wealth management. Prevent industry-wide “involution” competition in fee cuts, and encourage institutions to establish scientific fee models linked to performance. On the other hand, wealth management institutions should shift from solely pursuing scale expansion to focusing more on product differentiation, professional services, and customer experience optimization, replacing price competition with service competition.