Bank LUM is different from AUM

2022-04-30 0 By

The difference between the two environments mainly lies in the different demand conditions of funds.In Ping An Bank’s case, LUM mainly refers to customers’ retail loans, while AUM refers to retail customers’ off-balance sheet and on-balance sheet financial assets, including deposits and wealth management.Loan driven asset management is one of Ping An retail’s core tactics.Although retail banks emphasize the importance of slow work and fine operation, it is a feasible and effective breakout strategy for the company to rapidly adjust its structure in the early stage of transformation under the current industry environment of fierce competition in retail business, taking credit supply as its brand and continuously improving the core competitiveness of retail.Ii.LUM environment is formed under the condition of rapid growth of capital demand.The idea of asset-liability comprehensive management is to comprehensively consider capital and debt, and ensure the organic unity of capital liquidity, safety and profitability.Bank AUM refers to the asset management scale, which is an indicator mainly used to measure the asset management business scale of a financial institution, namely, the total market value of the assets under management of the institution.The higher the AUM, the higher the company’s position in the industry.The growth of AUM comes from the growth of investment funds from existing customers, the development of new customers and the growth of the market value of assets.