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Report: China second only to US in digital wealth management

  • May 16, 2018

Over a third of wealth management products sold in mainland China in 2017 were sold online, according to a new report.

Over a third of wealth management products sold in mainland China in 2017 were sold online, according to a new report.

According to the report by consulting firm Boston Consulting Group and online internet finance marketplace Lufaxs, 34.6% of such products sold in China were taken up online.

This was only second to the US market, where 40.7% of such products were sold online. 

Their research found that financial firms in China are adopting new technology at a quick clip and that the Chinese banking industry invests about 100 billion yuan (USD16 billion) in new financial technology each year.

“China is well placed in terms of online wealth management usage, thanks to tech-savvy consumers, a rapid growth in internet financing platforms and the ‘go smart’ trend among traditional financial institutions,” David He, Partner and Managing Director at BCG, told local media.

According to Greg Gibb, Co-chair and Chief Executive Officer of Lufax, the use of artificial intelligence and big data is expected to reshape the industry.

China is already home to 717 million smartphone owners as the world’s largest market, and more than 500 million online payment users, about 68% of its total internet population.

The report, however, found that the US also maintained its position as the world’s largest wealth management market, at USD9.4 trillion, followed by China at USD6.2 trillion.

Also, in the US, online financial platforms account for about 36% of the total market, while the level in China lingers at 10%.

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