Some small and medium-sized banks' agency sales business achieves its first breakthrough

By 彭 妍, a reporter

As 2026 begins, a number of small and midsize banks have broken the ice in their agency distribution business. They have rolled out代理贵金属（precious metals）, insurance, wealth management products, trusts, and other offerings one after another. Industry observers believe that small and midsize banks are accelerating their shift from traditional deposit-and-loan institutions into integrated wealth management platforms.

Interviewees said that the rollout of agency distribution business by several small and midsize banks is the result of combined pressure from operations, regulatory guidance, and market opportunities. At present, wealth management agency distribution has become a core growth driver and an important strategic direction for banks to expand non-interest income and advance retail transformation.

Recently, Fenggang Rural Commercial Bank officially launched its agency insurance business. On the very day of the launch, it successfully handled the first order of “Riding Insurance” non-motor vehicle liability insurance, achieving a business breakthrough.

At the same time, Jiangyin Rural Commercial Bank successfully rolled out its first agency trust product. The product is issued by Huaxin Trust, focusing on the asset allocation needs of high-net-worth clients, and aims to provide a long-term wealth appreciation solution. Previously, many small and midsize banks had already begun planning for agency distribution: in January this year, Huaining Rural Commercial Bank’s auto insurance agency business was officially launched; in December 2025, Guangrao Rural Commercial Bank completed its first order for agency insurance business; in August 2025, Nanxiong Rural Commercial Bank held a special meeting to announce the formal launch of its branded gold agency business.

Multiple banks have clearly identified wealth management as a key development direction. In interviews, Qingnong Commercial Bank said that in 2026 it will focus on building a wealth management system, facilitate the implementation of wealth management organizational structures, set up a wealth management team, and form a high-end client operations system with a three-tier linkage across headquarters, branches, and sub-branches, working in coordinated synergy. Zhangjiakou Rural Commercial Bank, in an internal meeting, also made clear that based on its already launched agency insurance and precious metals businesses, it will thoroughly implement the provincial federation’s deployment for conducting agency wealth management business, so as to accelerate the formation of an agency product system centered on “deposit substitution + wealth appreciation.”

Yang Haiping, a researcher at the Shanghai Institute of Finance and Law, told Securities Daily that under the current policy orientation, commercial banks’ net interest margins are facing sustained pressure, making it an inevitable choice to develop wealth management and increase income from intermediary business. In addition, regulators require small and midsize banks that have not been approved to establish wealth management companies to reduce their proprietary wealth management scale, which is also one of the key reasons for these banks to speed up their agency business layouts.

Against the backdrop of continuously narrowing net interest margins in the banking industry and retail transformation entering deep water, wealth management business has become an important growth point for banks’ non-interest income. At present, business development still mainly relies on an agency model, with products spanning multiple categories including wealth management.

Xue Hongyan, a guest researcher at Sushang Bank, told Securities Daily that compared with large banks, small and midsize banks’ advantage in pushing wealth management lies in their deep cultivation of local markets, enabling them to more precisely capture regional clients’ needs. However, they also face issues such as insufficient professional capabilities, generally lacking investment research, risk control, and talent reserves, and relatively weak brand influence.

Xue Hongyan further said that in the long run, the key for small and midsize banks to avoid homogeneous competition is to take a differentiated path. They should deeply cultivate local markets, focus on specific client groups such as county-area residents and owners of small and micro enterprises, and provide customized asset allocation solutions rather than pursuing “big and complete” products. They should strengthen ecosystem coordination, leverage local industry characteristics to embed wealth management into business operations and residents’ everyday-life scenarios, and form an integrated solution of “credit + wealth management + value-added services.” They should also enhance professional capability building by establishing a talent system through internal cultivation and external recruitment, and use financial technology to enable accurate client profiling and intelligent matching.

Yang Haiping suggested that to build core competitive strength in wealth management, small and midsize banks need to focus on three aspects: first, based on local client needs, enrich the product shelf through external cooperation; second, in light of their own realities, optimize digital service channels; and third, combine wealth management with local特色权益 and non-financial services to carry out integrated services and cross-selling.

(Editor: 钱晓睿)

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