Baoshang Bank has rolled out an online wealth management platform to explore the market for internet financial products.
Known as Xiaoma Bank, the new online wealth management platform provides online risk tolerance assessment to its clients and advises various portfolios of financial products to different clients as per their requirements, as reported by chinadaily.com.cn.
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Baoshang Bank general manager for strategy development department, Liu Xin, was quoted by chinadaily.com.cn as saying, "Traditional banks are under huge pressure from the liberalization of interest rates and financial disintermediation."
"We are making great efforts to maintain our core competence as the Internet finance is changing the financial sector," Xin told the publication.
"After more than a year’s research, we decided to take our first step in the field of Internet finance by giving more people the opportunity to enjoy individualized wealth-management services that used to target high-end clients only," Xin concluded.
At the first stage of operation, the platform provides two kinds of investment products, including debt products with maturity ranges from 3 to 12 months with an annualized return of 7.5%, and the second is money-market funds with a seven-day annualized yield of 4.52%, according to the news portal.
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By GlobalDataXiaoma Bank general manager Zhang Cheng told the publication, "The platform combines the traditional bank’s advantages in risk control and loan service with the simplicity and convenience of Internet finance."
Using Xiaoma Bank platform, Baoshang Bank is also planning to offer more products, such as equity funds and insurances gradually.
The platform offers easy purchasing wealth-management products anytime anywhere to attract young urban dwellers aged between 25 and 40.
