Core Viewpoint - The article highlights the current trend of declining bank deposit rates, with many banks offering rates below 2%, while some private banks still provide higher rates for large time deposits, indicating a competitive landscape in the banking sector [1][2]. Group 1: Deposit Rates and Products - Many private banks, such as Huari Bank and Webank, offer large time deposits with interest rates exceeding 2%, with Huari Bank providing a 24-month deposit at 2.35% and a 3-year deposit also at 2.35% [1]. - The demand for high-interest products is strong, with limited availability and quick sales, making them popular in the secondary market [1]. - Webank has introduced a service for investors to pre-order large time deposits based on specific interest rate and term criteria, enhancing customer engagement [2]. Group 2: Challenges Faced by Private Banks - Private banks generally have higher deposit rates than traditional banks, but their competitive advantage is diminishing due to continuous interest rate cuts [2]. - The lack of physical branches and brand influence poses significant customer acquisition and deposit challenges for many private banks [2]. - There is a noticeable disparity in deposit rates among private banks, with some, like WeBank, offering lower rates comparable to state-owned banks, reflecting different operational models [2][3]. Group 3: Interest Margin and Pricing Strategies - Despite higher liability costs, private banks maintain a net interest margin that is significantly higher than other types of commercial banks, although their net interest margin has seen the largest decline among all bank categories [3]. - As of Q2 2025, the net interest margin for private banks was reported at 3.91%, down 0.04 percentage points from the previous quarter, indicating pressure on profitability [3]. - The current environment compels private banks to adopt more rational deposit pricing strategies due to difficulties in finding high-yield assets to match liabilities [3]. Group 4: Strategic Recommendations - To address increasing deposit acquisition pressure, private banks are encouraged to develop open banking ecosystems and collaborate with third-party platforms to expand customer acquisition channels [4]. - There is a need for innovation in personal finance and wealth management products to provide differentiated solutions and enhance customer loyalty [4].