AUM, the abbreviation of Asset Under Management, means asset management, which is mainly used to measure the asset management business scale of fund management companies, investment banks, commercial banks or financial holding companies.

The bigger the AUM, the stronger its position in the industry. For example, in the global market, AUM of financial institutions such as UBS, Credit Suisse and Citigroup are all above. The growth of AUM value depends on the growth of capital invested by old customers, the development of new customers and the growth of asset market value. In other words, the higher the company's AUM, the greater the amount of asset management involved.

The scale of AUM

Whether banks or other financial institutions, a large part of AUM's asset size comes from the customer's asset size, that is, the bank's total asset size = other asset sources (which can be explored)+the user's total asset size. From this formula, we can see that AUM is usually used as an important reason to measure a financial institution such as a bank.

Although the size and influence of AUM bank are closely related, it has little to do with bank deposits. The deposits handled by individual users in the bank are divided into demand deposits and time deposits, of which demand deposits are very flexible and users can withdraw them at any time, but the interest income earned by demand deposits is relatively low; The flexibility of time deposits is relatively poor, and users can get more interest income after handling them.