Recently, Nanjing Suning Fund Sales Co., Ltd., a subsidiary of Suning Finance, was granted the certificate of fund sales qualification by China Securities Regulatory Commission (CSRC). By far, Suning Finance has obtained 11 financial service licenses, which made Suning’s all-around business pattern almost equal to Ant Financial.
After obtaining the fund sales payment license in 2013, Suning Finance got another authoritative license of the fund industry. These two licenses mean that Suning Finance is allowed to sell securities investment fund and operates fund sales payment and settlement businesses.
It is reported that Suning has reached out to a series of fund management companies, resulting in pledges of cooperation to provide various types of fund products as well as added-value services with high net value in areas such as education, health care, travel and retail for both individual and institutional clients. Currently, such products are being tested internally.
It is indicated by relevant data that the volume of publicly offered funds in China have reached 8 trillion RMB by the end of December, 2015. Meanwhile, third-party fund sales are increasing rapidly. It is predicted that third-party fund sale agencies will occupy more than 30% of the market share in the next 3-5 years, which means what all the third-party fund sale agencies are facing is a giant cake of 2 trillion worth of market volume.
Facing the huge market and fierce competition, Suning Finance has obvious advantages in O2O mode and brand power.
Different from traditional Internet financial institutions, Suning Finance integrates online and offline O2O modes. In respect of the online mode, Suning Finance owns 130 million members and wins a large number of loyal customers; while in respect of offline mode, Suning Finance has established 55 Suning wealth centers distributed in 32 cities nationwide to provide fast and convenient consultation services of investment and fund management.
“Fund products demand high professional level of investors as different investment targets have different risks. We provide not only products suitable to individual risk preference but also guidance from professional investment and fund management experts.” one official of Suning Finance said. At the same time, endorsed and supported by Suning brand, Suning Finance is able to bring more confidence to investors.
In recent years, open-end funds have become important money management tools for the public, and many Internet finance platforms have obtained fund sales business licenses. Now Suning have obtained 11 industry licenses including third-party payment, consumer finance, small loan company, commercial factoring, fund payment, fund sales, private equity, insurance sale, enterprise credit investigation, prepaid card and overseas payment, establishing an all-around business pattern almost equal to Ant Financial that has the most complete financial licenses in China.
“We aim to continuously perfect the multi-license pattern in banking, insurance, trust, securities and other financial institutions to provide multi-scene and integrated comprehensive financial services for customers. Suning Financial Services is rising to be among the best domestic Internet finance groups.”The chairman of Suning Holdings Group Zhang Jindong said when guiding the work in Shenzhen Region.
Industry insiders believe, as the Premier Li Keqiang stated “regulate the development of internet finance” in the government work report during NPC & CPPCC, the internet finance will terminate the wild growth status and follow the trend of standardization. New licenses obtained not only enhance the normalization and public trust of Suning Finance, but also facilitates the healthy development of the industry.