Why can’t bank financial management rely on the “highest rate of return” to deceive people?

We all know that when recruiting, the salary is written as 4000-8000, and then when looking for a job, we only see 8000 and not 4000. For example, during the Alipay red envelope competition this year, we all saw 666 yuan, but who Did you know that there are millions of dollars worth of one penny? So for the same reason, banks cannot use such a statement. In today's society, the average value is no longer correct.

“If you don’t explain the probability of realization and only promote the so-called expected rate of return and the highest rate of return, you are playing tricks on consumers!” In response to the problems existing in bank wealth management products, Tang Jiansheng, deputy secretary-general of the Shanghai Consumer Protection Commission, recently He said: Banks should play less with technology when designing products, pay more attention to conscience, and be responsible to consumers. As soon as these words were spoken, the onlookers cheered and came together: What situation made the Shanghai Consumer Protection Committee furious?

On the morning of February 23, the Shanghai Consumer Protection Committee and the Business School of Shanghai Normal University issued a A survey of structured financial products issued by Shanghai Commercial Bank found that 1/3 of the 627 structured financial products had only the lowest expected rate of return. The Shanghai Municipal Consumer Protection Commission reminds the public: The yield rate of bank wealth management products can reach 18%. Such "looking beautiful" propaganda has hidden traps and cannot be fully trusted.

Nowadays, many people need financial management, even the elderly are no exception, and they even buy structured financial products. A survey last year among 2,011 elderly people showed that about 11.3% of them had purchased financial products, of which 22.8% would buy structured financial products recommended by banks. Structured financial products refer to adding a certain derivative product structure to the customer's ordinary deposits through a certain agreement, linking financial management income with various parameters of the international and domestic financial markets, such as exchange rates, interest rates, bonds, baskets of stocks, funds , index, etc. The rate of return usually depends on the performance of the underlying asset (the underlying asset). The reason why people buy structured financial products is, on the one hand, because of their lower risk, which is true; on the other hand, they consider the higher rate of return, which is a question worth studying.

From the actual situation, the overall yield to maturity level of structured financial management products is low, and 96% of structured financial products are lower than the average maximum expected return. Overseas Chinese Bank's 2015 No. 17 equity-linked product has an expected maximum return of 18%, an expected minimum return of 0, and an actual return of 0. Jiangsu Bank's "Jubao Wealth Exclusive No. 4 (Structural) Issue 1609" has an expected minimum rate of return of 1.5%, an expected maximum rate of return of 18.5%, and an actual rate of return of only 1.5%... That is to say, although the bank's propaganda The rate of return is very high, but the final practice is that the highest rate of return cannot be achieved at all, and what is possible in the end is precisely the guaranteed number.

At this time, ordinary consumers will feel at a disadvantage, and even feel like they have been deceived: when the original promotion emphasized the highest yield of 18%, consumers were tempted to buy by this number, but in the end they only had The gap between the lowest rate of return and the minimum rate of return is so big that it is simply unbearable psychologically. Moreover, with such a rate of return, it is better to deposit money directly in the bank. However, consumers have nowhere to complain, because although they have not reached the highest rate of return, they have reached the guaranteed minimum, and there is no basis for reasoning with the bank. However, consumers may conclude that the highest yield is false.

So, is the highest rate of return announced by the bank false? The yield rate of financial products is indeed affected by many factors and is uncertain. But the income range announced by the bank should be possible. This requires asking the bank’s probability of realizing the highest rate of return. If the bank's highest rate of return reaches a certain proportion, it means that this highest rate of return is well-founded and scientific, but has only partially changed due to changes in objective circumstances; if the highest rate of return announced by the bank is almost difficult to achieve, then It can only be said that this highest rate of return is inherently baseless and even deceptive. The study also released a "Table of Unreliable Banks", in which products with very attractive expected maximum yields ended up with very low levels of realization.

Banks such as Hang Seng, Jiangsu, Overseas Chinese, China Everbright, and Hua Xia are at the forefront. Among products with expected maximum returns higher than 4.38% (the average return of financial products in the first half of 2016), the average maximum return realization level is below 30%. Hang Seng and Bank of Jiangsu Even only 6.3% and 11.2%, that is, if consumers are told that the yield is 10%, but in the end it is only 0.63% and 1.12%. When the highest rate of return announced by a bank is less than 30%, can such a bank still be trusted? The highest rate of return is around 10%. We should say that this is not because the bank is not good enough, but because the bank is a liar.

What can consumers do if they know that the bank’s highest rate of return is unreliable? Of course, they can choose not to buy structured financial products anymore. If you want to buy, you can't just look at the highest rate of return advertised by the bank. What you may need to look at most is the lowest rate of return. As a bank, we still need to have a correct business philosophy and not deceive the people for temporary gains. I think banks should not only announce the highest and lowest yields, not only guarantee the lowest returns for consumers, but also announce and guarantee the realization probability of the highest returns, so that consumers can make decisions when purchasing.