The rapid evolution of the internet has transformed various sectors, and the banking industry is no exceptionIn recent years, the coupling of internet platforms with banking wealth management has emerged as a significant trend, attracting considerable attention in the asset management sectorBanks like WeBank and Ant Bank have reported substantial growth in wealth management product sales through online channelsThis surge not only highlights the immense potential these digital platforms offer but also underscores the urgent need for wealth management firms to explore diverse sales channels to achieve growth.

This merger of internet platforms and bank wealth management products is not a novel conceptIn the past, some banks attempted to sell financial products on platforms like Taobao; however, regulatory requirements for face-to-face signing of contracts halted those effortsWith the introduction of new asset management regulations, there is now a flicker of hope for non-bank institutions to engage in agency salesYet, despite this regulatory relaxation, stringent controls on agency qualifications remain, with current permissions limited to banks and wealth management companies, leaving third-party platforms without access to these financial products.

The crux of the limitation faced by internet platforms in agency sales lies in the delicate balance between risk management and convenienceFirstly, there are ongoing concerns regarding whether certain wealth management products, which may involve non-standard assets, are suitable for sale to internet customersFurthermore, the standards for information disclosure and investor education concerning bank wealth management products lag behind those for mutual fundsLastly, there is a prevailing expectation among investors for "principal protection." If faced with a downturn, the lack of physical branch presence on internet platforms may exacerbate customer complaints and amplify public relations risks.

Notwithstanding these challenges, there is a strong call within the industry for the opening up of internet platform agency sales

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Some believe that the investment styles of current banking wealth management products have become rigidly aligned with the conservative preferences of traditional bank customers, stifling diverse asset allocationThe entry of internet platforms could inject fresh energy into the wealth management market, fostering differentiated product offerings that cater to a broader array of investor needs.

Notably, large and medium-sized banks have managed to leverage their extensive branch networks and existing customer bases effectivelyHowever, competition in the financial services market has pushed even these institutions to explore agency sales beyond conventional channelsMeanwhile, smaller firms, constrained by limited access to their parent bank's networks, are eagerly looking to leverage internet traffic to create growth opportunitiesExecutives in wealth management companies have expressed an urgent need for internet agency sales as a means to extend their services, particularly to engage with younger audiences.

The question remains, is it feasible to open up internet agency sales? Industry experts suggest that three fundamental prerequisites must be met; these include standardized information disclosure, a comprehensive investor education framework, and enhanced risk control mechanisms.

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