What is AUM (Assets Under Management)?

Personal AUM in banking refers to the scale of personal assets managed by a bank, including third-party deposits held at the bank. Customer deposits or investments in the bank are considered contributions to the bank. The greater the contribution to the bank (higher AUM), the higher the value of the customer.

Bank AUM represents the bank's total asset scale. A significant portion of a bank's asset scale comes from customer assets, expressed as:

Bank's Total Asset Scale = Other Asset Sources + Total Customer Asset Scale

From this formula, we can see that AUM is typically used to measure the scale of a financial institution's asset management business. The larger the AUM, the stronger its position in the industry. AUM growth comes from increased capital from existing customers, acquisition of new customers, and appreciation of asset values.

AUM Calculation Method:

Calculations primarily use averages, including daily and monthly averages, with 3-month averages being commonly used. AUM is used for customer classification, where generally 200K+ qualifies for Gold Card status and 500K+ for Platinum status.

Daily Average AUM Metric for Customer Evaluation:

Daily Average AUM = Monthly Average Deposit Balance + Monthly Average Investment Amount

Monthly Average Deposit Balance = (Σ Customer's Account Balance * Actual Deposit Days in Month)/30

Monthly Average Investment Amount = Σ Customer's Total Investments/30