The readjustment of the king of retail China Merchants Bank is the right posture for winter?

Author |Zhang Dechun.

* |The Tao is nothing.

A few days ago, the market spread the news of the adjustment of the retail structure of China Merchants Bank, and from the perspective of the situation of ** and the news of all parties, there is too little value. After I searched for it, I filtered out most of the parallel import information and extracted two core effective contents.

However, if you combine these contents with the past playing style and strategy of China Merchants Bank, and then look at the overall series, you can find some key logics that have been ignored by almost everyone.

Let's start by sorting out the key and effective information.

The first key information is the establishment of a new retail customer departmentIt is composed of part of the team of the original Wealth Platform Department and its secondary department, the Network Operation Service Center.

Recently, market sources said that China Merchants Bank has adjusted its retail structure and established a new retail customer group department, with Li Mingdong, general manager of the wealth platform department, concurrently serving as the general manager. The reporter verified with people close to China Merchants Bank that the news was true.

It is reported that the retail customer group department of China Merchants Bank is composed of part of the original wealth platform department and part of the network operation service center of its secondary department.

A person from China Merchants Bank told the 21st Century Business Herald reporter that the retail structure of China Merchants Bank can be further divided according to team functions after the second-level department, such as the retail financial headquarters includes the basic customer group team, group financial team, scene development team, branch operation team, user and payment product team, etc.

Behind this message, there are two deep meanings:

The first meaning is to set up a separate retail customer group department in the retail line to further concentrate the retail customer group operation and increase the weight.

Some people are far-fetched, saying that China Merchants Bank has ended its "** decade" of rapid progress, and for the first time in nearly a decade, there has been a negative growth in annual revenue (-1.).64%), and then exclaimed that China Merchants Bank is indeed the king of retail, and the adjustment of the organizational structure has been completed in such a short period of time after the performance came out.

It's really layman's talk.

This kind of adjustment of the core structure of the head office of the head stock bank will take at least a month and a half to brew without three months, and all kinds of analysis and demonstration, reporting, revision, and finalization, you say that it can be done in ten days, I don't believe it.

In other words, the establishment of a separate retail customer group department is originally a matter of CMB's plan, and it is estimated that it will be available from the interim report or the third quarter report in 2023.

The role of the official announcement is to help the new team gather gas and gather the consensus of all levels, lines and departments of the head office-branch-sub-branch.

It should cooperate and cooperate, and if there is any slackness, it can be directly held accountable.

Second, the branch continued to strengthen the role of the branch, from the department headquarters to the operation of the outlets.

If you look closely, you will see that Li Mingdong, the general manager of the newly established retail customer department, is also the general manager of the wealth platform department, and he previously served as the vice president of the Shenzhen branch.

Zhao Yue is the General Manager of the Retail Finance Headquarters and the General Manager of the Private Banking Department, having previously served as Vice President of Retail and President of Haikou Branch in Guangzhou Branch.

Zhao Yue's predecessor, Wang Yanrong, was the president of the Xi'an branch before becoming the general manager of the private banking department.

If you still have an impression of "The Right Posture for Banks, Wealth Management Business in the Winter", you will find that these branches are all from the "troika and seven wolves" with the strongest combat power in the China Merchants Bank system.

That is to say, the president of the strongest retail branch has direct access to the retail line of the head office, they can not only hear the fire of the front line, but also mobilize the resources of the head office, and the decision-making system and indicator system will be more in line with the actual situation of the front line.

This alone could beat a lot of banks.

I repeatedly emphasized in the articleIn the new era and new stage, the importance of branches should rise to a new heightCauses.

In winter, it is necessary to put on the right posture, use good steel on the blade, do a good job of reducing costs and increasing efficiency, even if you shout out 100 rules and regulations, it is not as useful as directly using branches in the future.

Holding up an abacus in one hand to settle accounts, and raising a sword and gun in the other hand to fight, they are all good hands.

At the same time, in terms of organizational structure, it is definitely a good move to keep the outlet operation team under the retail line. The effective penetration and effect feedback of the head office's strategy need to be ensured and strengthened at the organizational level.

You can think about it, in contrast, how many banks are bragging about when the government decrees do not leave the head office building.

Okay, so let's move on to the key information.

The second key information is to implement the operation of customer groups, and it should be combined with the operation of asset classification.

"At present, how to do the 'middle income' without increasing everyone's performance has become a key issue. "Previously, from the perspective of financial specialists and grassroots level, new customers and customer group maintenance were mixed together, but now the two need to be separated structurally.

He took the product to the reporter as an example, the previous products are collectively referred to as "Caiping investment products", and now they are further divided into public and private products, correspondingly, a part of the team also needs to focus on new customers, part of the customer group maintenance, and part of the customer group and product line for collaborative maintenance.

Take a branch of China Merchants Bank as an example, which recently launched a marketing plan called "Haohai". An account manager told reporters that the main form is customer stratification and marketing. "For example, 50,000 to 500,000 is the gold card customer group, but the 200,000 to 500,000 part can continue to be stratified and then targeted to sell products. Then you can continue to segment the customers of the branch, such as bringing out new customer orders. ”

This is actually a very common operation for students who have come out of Alipay's wealth, and it can even be said to be a basic skill.

From the initial sale of non-standard deposits, to the later sale of structured deposits, and then to the fixed income + and selected equity public offeringsThe emphasis is on the exposure and conversion of a sub-customer group, and the limited good assets will be given priority to new customers and critical point customers.

Banks actually have similar practices, but they are often at the front line of the branch, at most to the branch level, to carry out the operation of specific customer groups + exclusive assets.

Among them, the existing asset side, such as the "flash loan" of China Merchants Bank, has recently been launched at an annualized interest rate of 3% for users with no borrowing records and good credit card records; There are also liabilities, such as a bank's special deposit product, with a 1-year interest rate of 195%, 3 years up to 26%, which is launched for customers who transfer funds from outside the bank.

These practices often have methods, but there is no system, and the user side and the asset side do their own thing, which is generally driven by short-term marketing projects, or the personality charm and public relations ability of the head office department or branch leaders, so it is difficult to sustain.

In this quotation, I was a little moved when I saw the sentence "Do 'Zhonghui' without increasing everyone's performance".

I have seen too many cases of the head office having brainless indicators and breaking legs on the front line of the branch, which is a very smart move to promote and not apportion. It comes not only from the strategic confidence of the head office management, but also from the strong understanding and execution ability of the branches and front-line.

By optimizing the structure, the performance is improved, the new customer conversion and the old customer operation are separated, and different types of assets are reconstructed and arranged according to the logic of the sales sideThe result of this is to achieve results from efficiency, rather than from manpower. Everyone will be more and more confident, and the cost can be well controlled.

This is the right posture for the bank to survive the winter.

If today's article only stops here, it can only be regarded as a sincere interpretation of information from people in the industry, which does not reflect the level of this master.

So next, I'm going to show you a much drier dry food, drier than the driest dry season in the Sahara in July and August.

Why? Because we must be systematic in doing things, and looking at peer news is not to eat melons or show off, but to better guide our work and get better performance.

Let's move on.

Let me ask you, when you see each bank throwing out its own strategy, what slogans such as "full value chain" and "one body, two wings", do you feel a little confused and empty?

When you see that one bank has launched a new marketing campaign and another bank has come up with a "xx choice", will you think it looks good, but if you really want to start doing it, and you find that you don't know where to start?

Don't worry, most people in banks are in this state, even the management of some bank headquarters, you are not special.

So what's the problem?

In fact, the answer is very simple-You see a finished tool, but it's not clear what the problem it was originally designed to solve.

Whether it was doing e-commerce in the public offering before, or later Ant doing wealth black cards, ** tickets, or now in the bank, I will force myself to think about a question: What is the main contradiction in the current business of the company I work for?

Then think about it, what is the main aspect of the contradiction in this contradiction, and does my business belong to the main aspect of the contradiction?

After straightening out the root of the problem, whether it is the understanding of KPI indicators, or the design of business solutions, and the coordination between the top and bottom, it will be very smooth.

My understanding may not be correct at the first step, and I will continue to iterate and adjust my description of the main contradictions of the current business in the process. With each correction, my perception improves dramatically.

I've been working at ants for four years, and I've almost been able to do it for eight years.

Okay, then again.

For example, my perception of the main contradiction in some joint-stock banks is the contradiction between the growing demand for flexible and efficient operation of branches and the increasingly bloated chimney-based organizational system and index system of the head office.

One breaks, one stands. What is broken is the chimney-like department wall of the head office and the complex process indicators that continue to breed within the department; What stands is the ability of the branch to operate in an integrated manner, from the underlying assets to the operating platform, and from the operating platform to the front-end customers.

Don't look at banking and the Internet, they seem to be two unrelated industries, but in fact, they have an underlying logic that is the same:Whoever is closer to the customer will speak louder and more weighty.

In the Internet business, the operation is closest to the user, followed by the product, so the operation-driven company like Ali has the highest status and decision-making power in operation (PS: high decision-making power does not equal high salary); A product-centric company like Tencent has the highest product status and decision-making power.

In a bank, who is closest to the customer?

The first is the first-line outlets, followed by the branches. It is impossible for the decision-making power to sink to the first line, otherwise it will be chaotic to "cut the land for the king"; The branch is in a particularly modest position: it can not only hear the fire on the front line, but also be able to directly export the customer's business strategy, and can effectively connect with the head office and mobilize the resource injection and support of the head office.

When you understand this layer of logic, and then look at the beginning of this article, I believe that I will have different experiences and insights from my analysis of the adjustment of the layout of CMB's retail lines and the combing of the resumes of various departments in the branches.

At this point, the core logic behind this retail structure adjustment (I focus on AUM in the expression, but the logic of the loan business is the same) can surface

User Terminal:Divide first and then merge, distinguish new customers and old customers, and old customers are graded according to AUM to formulate differentiated customer group management strategies;

Platform side (channel side):Online APP platform, offline network operation, and remote marketing are linked together;

Asset side:According to the investment classification, public and private offerings are distinguished, and different types of assets are arranged according to the classification of customers.

Looking at industry news, it is necessary to see this level to understand and see through.

After sorting out the main contradictions of the current business, we have a standing foundation, and from here, we can talk about the design of the organizational structure and the design of performance indicators, which is of practical significance.

Come, please hold on to the handrail again, let's do a thought experiment.

Suppose such a scenario:

There is a bank that decided to fully release the vitality of its branches, completely demolishing the chimneys and departmental walls of the head office, and smashing the index system of stacked bed frame houses

1) Eliminated all the business departments of the head office, and only retained the seven departments of business management, planning and finance, human resources, consumer protection and compliance risk control, brand, IT and customer service. Think about it, what will happen if you do that?

2) Kill the existing indicator system, only retain the most basic lending of the bank, the assessment indicators of the first income, and other indicators are used as bonus points, and the reward is directly to the individual, package production to the household, what will happen?

For example, a local life app only assesses the order amount for local branches, and does not care what products are sold to achieve it, as long as the order amount reaches the standard. If in the process, it can drive the increase of new customers on the C-end and new merchants on the B-side, the sales will be directly rewarded.

You may say that the business format is different and it is not easy to compare, then I will advise you to put down the "banking special theory" first;

You may also say that our indicators have been streamlined a lot, and if we reduce the number of points again, it will get out of control, then I also advise you to let go of "I have tried my best" first;

You even went on to say that China Merchants Bank is doing just that, giving these indicators to its branches, why are you doing it more extreme than China Merchants Bank, then I will finally advise you to let go of the "benchmark practice cannot be tampered with".

You see, that's where the thought experiments come in.

If your mind is full of all kinds of "it should be like this", it will be difficult to find "it can be like this", and in the end you can only regret it, "I knew I was like this".

There is no standard answer to this thought experiment.

Okay, after the thought experiment, let's go back to the ground from the air and take a look at the problems that are often encountered in the daily operation of the head office and branches.

I've summarized it abstractly, and there are probably three categories at the top of the list:

1) The head office cannot see the branch, and the branch cannot reach the head office.

2) There are many branch indicators, many mothers-in-law of the head office, and mother-in-law of the head office often fight.

3) The total action is not to use the brain, and the branch is pushed away.

The above are all in Chinese, or in the vernacular, so I don't need to explain cumbersomely - in other words, if you don't understand and have to explain, you are either not in this industry, or you have really been floating in the sky for too long.

Seeing the problem is to better solve it, and then optimize the organizational structure and indicator design system, optimize the resource allocation method, and get better business results.

So, what to do?

First of all, the head office should see the local characteristics and difficulties of the branch.

Some branches are located in areas with inconvenient transportation and serious outflow, making it very difficult to acquire customers locally. However, because of the large number of people who go out to work, there is a steady stream of funds flowing in every month.

This kind of branch, instead of forcing customer acquisition indicators, should focus on live savings, education savings or prudent financial management.

At the same time, we should not keep all eyes on the indicators of the head office, but leave one eye to look at the local area, and see how the ranking of the branch is based on the benchmarking bank of the opponent operating in the local area. Are there some businesses that you should have done well but didn't do well, but did well in other industries?

To tell you the truth, it is much more difficult for you to improve the ranking of branches in your local bank than it is for you to improve the ranking of branches in our system.

Second, supervision cannot be just supervision. Lead what? direction, strategy, tools and resources, so that the branch can have access to the head office.

I chatted with a colleague in the branch and said, "Oh, I don't know that the head office has made so many easy-to-use platforms and tools, so I should really tell us more about ......."”

At this time, if you take it seriously, you will be in trouble.

This is actually a friendly reminder from a branch colleague, "What is the use of all those things you are doing at the head office?" If it's really useful, it will be lit up early, don't do a good job and get a good performance and it's over."

Therefore, people are self-aware.

Another meaning of self-knowledge is not to myth your own tools and products, to each branch to copy, check the coverage - this is very scary, the front line is so busy that there is no time to fly, go to the toilet, but also set aside time to participate in a variety of inexplicable new tool training, that is really a knife in your heart.

Third, it is necessary to return to the most basic business essence of the bank, and set targets around revenue and profit, rather than around departments.

The biggest headwinds came from the head office's business unit.

They have the resources and the pressure to survive, but they don't have the ability to manage customers.

In other words, there is only the butt of the mountain, but there is no brain to think about business logic, and there is no hand and foot to do customer business.

The head offices of many banks are composed of mountains full of buttocks, which is really a special scenery.

If the business department of the head office cannot be completely eliminated, it is necessary to maintain a high frequency of structural adjustments and personnel turnover. When you find out that what you grabbed for yourself today is the business that you have to fight for tomorrow in another department, you can start doing practical things in a down-to-earth manner.

Fourth, after the head office has set the core indicators, it should be able to build a business strategy based on the local characteristics or ability endowment of the branch.

This article has been mentioned earlier, and it is also the place where the head office can play the role of looking at the overall situation.

The most ideal situation is that the head office only retains the seven supporting departments mentioned above, and then does a good job of the correlation model between the core indicators of the whole bank and the operating indicators of the branches, and does a good job of regular follow-up and assessment.

However, the reality is often cruel, if you can't do it completely, you can at least start by gaining insight into and refining the characteristic business strategies of local branches.

At this point, it's time to talk about the solution.

But is this something that can be said?

I wrote two or three thousand words in this part, but in the end I deleted all of them, leaving a few minimalist overviews, in fact, this is in line with the "user-platform-asset" layout of China Merchants Bank in the analysis of the first half of the article. I hope that in the future, I will complete my business and share them with you as a success story

1) Optimization of indicator structure.

2) Branches do a good job of localized operation.

3) The head office focuses on three things: multi-scenario platform, user-exclusive rights and interests, products, and asset support system.

Although the method is not detailed, the benefits of this can be discussed.

First of all, branches can combine local characteristics with their own endowmentsIt focuses on special businesses such as corporate business, agency issuance, or deposits, and no longer requires branches in various regions to unify indicators and do not enforce unified rankings.

In fact, every time I look at the rankings, in addition to the low-ranking branches, there are also some top-ranked branches. Because they don't know when they're going to fall behind. Instead of waving a whip, it is better to wave the flag, treat people as people, and stimulate people's fighting spirit and morale.

Return to the local area to make advantages, play morale to make bright spots, build a team of strivers, and break through branch by branch, so that the branch can be completed, and the whole bank can be successful.

Secondly, most of the advanced and backward rankings should be placed on the management of branches and sub-branchesBecause the homogeneity of the sub-branch is relatively high under the same branch, such a ranking is more referential, and the direction of improvement will be clearer.

Third, the work of summarizing experience and empowering sub-branches should be handed over to the branches, rather than the head office.

Fourth, branches can do the right thing:The retail business is characterized by "hard work and slowness", which needs to be combined with local characteristics and long-term sustainable operation, and the unified index baton of the head office often ignores this difference. What's worse is that the indicators of the head office are still changing frequently, and the branch will have to face a choice: whether to continue to do the "right" thing and continue to do a good job in local business operations, or to do the "good" thing, complete the head office indicators and get more bonuses. Implement the flexible and efficient operation of the branch, change the bloated chimney of the head office, and everything will be different.

At this point, it is time for the full text to end.

This is my thinking and perception of the underlying business logic of the bank after seeing this seemingly small news, and I will share it with you.

Finally, let's explain, everyone encourages: be a person, settle accounts, stand on the ground, move forward, and don't look back.

Bless to everyone who wants to be better.