credit cards: competition and transformation in the vortex

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in recent years, with the upgrading of consumption and the development of internet finance, the activity and user scale of the credit card market have grown rapidly. however, along with this expansion and fierce competition, the challenges facing the credit card market have also been exposed. these challenges include: increasing credit security risks, excessive credit leading to a decline in asset quality, and consumers' repayment ability being affected.

the evolution of the strategy of “controlling new products and reducing losses”

in response to the above challenges, many banks have chosen the "control new card issuance and reduce losses" strategy as the core idea. industrial bank took the lead in adopting this strategy by optimizing the new card issuance customer base, strictly managing high-risk customers, and strengthening service innovation in credit card transaction scenarios to improve asset quality and user experience. they attract the attention of young consumers through precision marketing, and effectively expand the credit card business ecosystem through the integration of online and offline scenarios.

citic bank is also actively exploring new ideas. in 2019, they began to optimize customer access, reduce high-risk customers such as joint debt, deepen asset structure adjustments, and continuously increase the proportion of high-quality customers. at the same time, in the in-depth cooperation with internet platforms, they screened high-quality customers through joint modeling and achieved precision marketing, thus achieving good results.

integration of technology and life scenes

with the development of technology, emerging markets and scenarios continue to emerge, and credit card business has also begun to integrate into these scenarios, becoming closer to user needs. some banks have unified the management of customer credit cards and consumer loan credit limits, opened up the synergy between credit card business and other retail business lines, and explored the potential value of existing customers through intra-line and cross-line customer conversion.

in addition, some banks have also actively introduced technology, using concepts or benefits such as cute pets, tea and coffee, videos, sports and fitness to meet the diverse needs of young customers and create a richer experience.

challenges and opportunities coexist

the development of the credit card market is full of opportunities and challenges, and banks need to continue to explore and innovate. in terms of risk management, how to effectively control the non-performing loan rate, how to improve asset quality, and how to attract more users and achieve long-term stable development all require banks to constantly think and work hard. only by continuous innovation and optimization of business strategies can we succeed in the fiercely competitive market, create new value, and ultimately push the credit card market into the "new generation" stage.