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Profitability Model Needs to Be Clearly Defined

Securities traders need to make it clear that it is their principle to center their services on the needs of the client and allocate the assets of the client professionally to ensure value retention and to increase the client's assets. Wealth management needs of the client tend to arise from investment and financing. Securities traders have multiple functions such as research, asset management, investment banking, outlet conduit, and product development. However, there is serious bureaucracy and departmentalism between most functional divisions. Even if a wealth management division is set up to lead the effort, it can be difficult for it to coordinate things based on the needs of the client, becoming a target of departmentalism. In contrast, most of the outstanding investment banks or banks overseas have established a dedicated division to provide services for wealth management clients. Relevant departments and divisions, however, still have such common characteristics as a deep understanding of the needs of the clients and the ability to independently coordinate various resources in the company, to provide services for the clients based on their financial condition and risk preferences.

Team Building Should Be Conducted in a Coordinated Way

For domestic securities traders, the success of the wealth management business relies on a couple of key talented professionals as follows:

- Competent wealth managers should possess integrated marketing and service capabilities. Unlike middle ground service staffers (commonly known as "tutors") in the operation division of many securities traders, a wealth manager cannot talk theoretically and provide stock recommendation services based on technical analysis. It has been shown in practice that it is extremely risky to manage wealth simply through stock recommendation. Wealth managers need to provide wealth individualized management services with privacy elements. Therefore, a wealth manager needs to have rich social exposure, wealth management experience, excellent marketing ability, and personality. A wealth manager has to win the trust of the client through a long period of interaction; it will not come with just a few successful stock or product recommendations. The investment counseling qualifications granted by the industry are just the threshold for entrance. A competent wealth manager grows to maturity in marketing service practice. It will take some time before the effort to build such a team comes to fruition.

- The operation division general manager should have marketing service competence, and more importantly, entrepreneurship. These general managers are the first-line commanders who lead the marketing service personnel of the branches in providing wealth management services for clients. They also have to be responsible for the revenue generation and financial performance of the operation divisions. A competent operation division general manager has to build the team, understand the clients and provide good services to them, and enable the operation division to make profit or offset losses while providing added value to the clients. Generally, besides expertise, a successful operation division general manager should have the following abilities:

- Entrepreneurial traits such as ambition and sense of responsibility for the profit of the enterprise

- Intelligence, logical thinking, creativity, and judgment

- Control over interpersonal relations, including strong confidence, ability to bring the best out of others and lead by example, being good at encouraging others and communicating with others, ability to maintain close relationship with superiors and subordinates, optimism, and connection to the grassroots

- Mature character and self-discipline

- Initiative and resolution

- The ability to treat different opinions objectively and realize one's own shortcomings

- Flexibility

- Frugality

- Hardworking spirit

 
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