According to the interpretation of the standard, bank wealth management products should be capital investment and management plans developed, designed and sold by commercial banks for specific target customers based on the analysis and research of potential target customers. In the investment mode of wealth management products, banks only accept the funds entrusted by customers, and the investment income and risks are borne by customers or both customers and banks in an agreed way.
The Interim Measures for the Management of Personal Financial Services of Commercial Banks promulgated by CBRC defines personal financial services as "professional service activities such as financial analysis, financial planning, investment consultancy and asset management provided by commercial banks for individual customers". Personal financial services of commercial banks are divided into financial advisory services and comprehensive financial services according to different management and operation modes. What we generally call "bank wealth management products" actually refers to comprehensive wealth management services.
Bank financing and insurance financing have different business entities. Bank wealth management products are business operated by banks, and insurance products are business operated by insurance companies.
Bank financing and insurance financing have different functions. The main function of bank wealth management products is to pursue capital security and certain income. Compared with insurance products, there are differences in risk prevention, acquisition methods and ownership. In terms of risk prevention, both insurance products and bank wealth management products can prepare for future risks, but it is a self-help behavior to deal with future risks with bank savings, and insurance can transfer risks to insurance companies, which is a mutual assistance behavior.
In terms of deposit and withdrawal methods, bank deposits are free to deposit and withdraw, and interest is paid at the current interest rate in advance without loss of principal. However, insurance products do not have the concepts of deposit and withdrawal and interest, so it is uncertain whether they can obtain insurance benefits. Insurance benefits can only be obtained when the coverage expires or an insurance accident occurs. If you surrender early, you will bear certain losses. Both insurance products and bank wealth management products are affected by the big economic and financial environment, and there are uncertain risk factors, so it is impossible to simply compare insurance products with bank wealth management products.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.