"China Science and Technology Investment" Zhang Ting Yang Yongjie
Recently, Liaoning Zhenxing Bank Co., Ltd. (hereinafter referred to as "Liaoning Zhenxing Bank") launched the "Joint Partner Assistance Program" activity. Users can use the "assistance coupons" issued by them to purchase deposit products to increase deposit income.After using the "Booster Coupon", the interest rate of the deposit product purchased by the user can increase by 0.8-2.35%, and the booster income will be released together with the product interest when the product expires.According to the reporter's understanding, the above deposit products may involve high interest rates.
In addition, although the regulatory authorities have prohibited banks from opening deposits in different places through various channels, when users outside the province make deposits but are prompted by the bank system to restrict the area, they only need to transfer 1 yuan into the account to lift the restriction.Analysts believe that the bank's online APP has the advantage of operating across time and space, but it also needs to comply with the relevant requirements of Internet deposits and Internet finance regulations.
Using "boost coupons" to attract high interest rates
Recently, the reporter noticed that Liaoning Zhenxing Bank launched the "Joint Partner Assistance Program" activity, that is, after users join the activity, they can purchase deposit products in the Liaoning Zhenxing Bank APP and use the "assistance coupons" in the activity to increase deposit income.
There are currently 5 deposit products in the "Zhenhui Deposit" series 1-5 in the Liaoning Zhenxing Bank APP. The corresponding deposit periods are 3 months, 6 months, 12 months, 3 years, and 5 years. The minimum deposit amount is 50 RMB.The page shows that the deposit interest rates of the above deposit products are 1.85%, 2.05%, 2.25%, 3.5% and 4% respectively.
*Liaoning Zhenxing Bank deposit products, screenshots from the bank APP
After new users scan the QR code to enter the event page, fill in the phone number and verification code to receive the "assistance coupon", and the registered old users can directly view it in the APP "My-Points Mall-My Cards and Vouchers"" Booster Coupon", which will be automatically checked when the user deposits the corresponding product.
It is worth noting that after using the "assistance coupons", the interest rates of the 3-month, 6-month, 12-month, and 5-year time deposit products in the Liaoning Zhenxing Bank APP rose to 4.1%, 4.4%, 4.45%, and 4.8%, respectively. And the minimum deposit amount rose to 100 yuan.The “Boost Coupon” shows that the full name of the coupon is “Nike Partner Boost Exclusive 00X”, which is valid until August 31, 2022.After the user uses the coupon, the customer's income is the deposit product holding income plus the Nike partner's assistance income, which will be released together with the product interest when the product expires.
*Screenshot from Liaoning Zhenxing Bank APP
According to the "Notice on Strengthening the Management of Commercial Banks' Deposit Deviation Degree" issued by the former China Banking Regulatory Commission, the Central Bank and other departments, commercial banks are not allowed to attract deposits with high interest rates, raise deposit interest rates or high interest rate levels without authorization in violation of regulations, and set up special The account pays high interest to depositors; it is not allowed to illegally rebate deposits, and absorb deposits by illegal means such as returning cash or negotiable securities, and gifting in kind.Therefore, Liaoning Zhenxing Bank may be suspected of attracting savings with high interest rates.
Products involving remote storage
Liaoning Zhenxing Bank is the first private bank in Liaoning Province, headquartered in Shenyang City, Liaoning Province. The "Joint Partner Assistance Program" activity shows that if users are prompted for regional restrictions when depositing, they only need to transfer 1 yuan to lift the restrictions.The reporter operated the Liaoning Zhenxing Bank APP and learned that when the user's account has no funds, when the user purchases the deposit product, it will display "This deposit product is currently only supported by customers in Liaoning area", but when the user transfers 1 yuan in the account, then purchase the deposit product can be directly operated.
Previously, when the central bank released the "China Monetary Policy Implementation Report in the Fourth Quarter of 2020", it proposed that from the first quarter of 2021, banks will be prohibited from opening deposits in different places through various channels, and the existing deposits will naturally mature and settle.On January 15 last year, the "Notice on Regulating Matters Concerning the Development of Personal Deposit Business by Commercial Banks through the Internet" was officially released, which mentioned that local corporate commercial banks should stick to their development orientation and ensure that the deposit business conducted through the Internet is based on service. Customers in the region where the establishment has been established.However, in April of that year, a reporter from "China Science and Technology Investment" learned that Liaoning Zhenxing Bank could still collect deposits in different places through the WeChat public account.
What are the risks of off-site deposits?Yang Changhan, a professor and doctoral supervisor of the Department of Finance and Financial Management of the Business School of Central University of Finance and Economics, told the reporter of "China Science and Technology Investment" that local small and medium-sized banks are motivated by profit expansion and asset-liability expansion. Regional operations, such as collecting deposits in different places, can easily lead to these banks ignoring operational risks and breaking the red line of prudential supervision."Bank online APP has the advantage of cross-time and space operation, but it also needs to comply with relevant Internet deposit and Internet financial regulations."
Liaoning Zhenxing Bank’s annual report shows that from 2018 to 2021, the bank’s total assets were 17.509 billion yuan, 26.225 billion yuan, 27.180 billion yuan, and 26.715 billion yuan, a year-on-year decrease of 1.49% in 2021.
In terms of customer deposits, from 2018 to 2021, the customer deposits of Liaoning Zhenxing Bank were 12.214 billion yuan, 21.061 billion yuan, 22.676 billion yuan, and 21.056 billion yuan respectively. The total deposits last year fell by 7.14% year-on-year.
*Liaoning Zhenxing Bank's assets and deposits, based on the bank's annual report data
In addition, Liaoning Zhenxing Bank's performance report for the first quarter of 2022 showed that its total customer deposits in the first quarter of 2022 were 20.555 billion yuan, a year-on-year decrease of 4.11% compared with the first quarter of 2021.As of the end of 2021, the Bank's operating income was 753 million yuan, a year-on-year decrease of 8.06%; however, the bank's net profit was 46 million yuan, a year-on-year increase of 211 million yuan, turning losses into profits.
Yang Changhan analyzed that compared with large state-owned banks, joint-stock banks and small and medium-sized banks are under greater pressure to attract reserves. Objectively, joint-stock banks and small and medium-sized banks are far less rigid than large state-owned banks in terms of institutions, personnel, outlets and network platforms. Soft aspects such as branding, credit, market mobilization, and debt management capabilities are also far inferior to large state-owned banks.Yang Changhan suggested that in terms of savings deposit business, joint-stock banks and small and medium-sized banks should strengthen deposit innovation in products, strengthen customer service in operations, strengthen the integration of online and offline channels on the premise of compliance, and deepen regional and local market penetration. Sink the market, prioritize retail customers and long-tail customers in customer selection.
At present, Liaoning Zhenxing Bank is introducing financial technology resources.A U.S.-listed financial technology platform disclosed in its 2021 performance report that it indirectly holds Liaoning Zhenxing Bank, and invested 315 million yuan in the fourth quarter of 2021 to acquire 45% of Liaoning Zhenxing Bank’s second largest shareholder Tianxinhao Technology. It indirectly holds a 12.6% stake in Liaoning Zhenxing Bank.The founder and chairman of the fintech platform said in the financial report, "We are exploring opportunities to cooperate with the revitalization bank."
Regarding issues related to Liaoning Zhenxing Bank's deposit products and its development, the reporter sent a letter to the bank, but as of press time, no reply has been received.
(Editor in charge: Wei Jingting)
