Is it for profit that banks have been crazily marketing ETC recently? Do we really need to install it?

With the development of the times, the profession of highway toll collector will gradually be eliminated.

This is the inevitable trend of the development of the times.

It is also very necessary to install ETC.

Because, in the near future, it is very likely that all ETC will be implemented.

I am an ETC from the postal service. I have applied for it for more than half a year and have used it many times.

Now I have completely fallen in love with ETC.

So far I have only seen the advantages and no disadvantages other than convenience.

When I first applied for a savings card, I had to pre-deposit 500 yuan to bind the savings card.

But if you don’t use ETC for the 500 yuan, it will be refunded to you every penny.

I didn’t have a credit card, so I applied for a postal credit card.

Then the savings binding was replaced by credit card binding.

The 500 yuan was returned to me. I paid it back immediately.

The one I have is now on sale at 95% off.

By the way, there is an ETC debit card inserted in the machine.

Not a credit card. A few years ago, there was a risk of credit card fraud.

All major banks have now eliminated this security risk. So there is no risk of fraud.

Because there is protection between the debit card and the credit card binding.

In addition to the sensors and cameras at the highway entrance, the payment can only be deducted when the license plate number of your vehicle and the chip ID in the accounting IC card are captured at the same time.

There seems to be a security secret.

At the same time as the fee is being deducted, the mobile phone can receive SMS notifications.

Therefore, it can be said that the possibility of fraud is almost non-existent.

There is no need to worry about this at all.

Now, if you often drive on the highway, well, even if you don’t often drive on the highway, you can definitely install one.

The convenience is real.

I regret pretending to be late.

ETC is a credit card, so there is no need to deposit money first.

Banks are losing money by running ETC now, because banks have to spend money to buy the equipment.

The purpose of setting up ETC is to obtain customer resources,

and to prepare for attracting customers to make deposits or handle business in our bank in the future.

Don’t be suspicious, why not give away the equipment for free?

Both banks and high-speed ETC centers are actively responding to the call to achieve a 90% installation rate by the end of the year. As car owners, we only need to decide whether to install it based on our actual situation, at least in the short term. There is no impact on ETC-free vehicles going up and down highways. When it comes to benefits, I think it’s up to everyone to analyze it. The purpose of banks marketing ETC is for benefits. Do banks do this for public welfare? Where do the benefits come from? Most banks do not support the operation of spending first and then repaying. They generally require linking a bank card, and a certain amount of RMB must be pre-stored in the card or device, otherwise you cannot use ETC to get on and off the expressway. This pre-deposit amount can be more or less, but for car owners who often drive on the highway, a pre-deposit of 500 yuan or 1,000 yuan is considered a small amount. This amount of money is of great significance to the bank. I think only the banks themselves understand the interest game in this. Let’s do a simple calculation. Based on the current 200 million passenger cars, a pre-deposit of 500 yuan for each car would be astronomical! How do banks make money? People's deposits make up the bulk of the money, followed by loans. I applied for ICBC ETC and linked it to the ICBC card. I can spend money first, but the next day I have to make sure that the balance in the card is enough to pay yesterday's toll on the up and down expressway. Otherwise, I will be blacklisted immediately, and I feel like I will be blacklisted at any time. Finally, let’s talk about whether it is necessary to install ETC in the next step. The answer to this question is: absolutely necessary! If the installation rate is 90% by the end of the year, then the installation rate is estimated to be 100% in 2020. In the near future, all manual card issuance and toll lanes will be converted to ETC lanes, and toll collectors will also face internal transfers or even layoffs. Therefore, we must keep up with the development of the times. Instead of waiting until the end, it is better to take advantage of the promotions currently being held by banks and apply for an ETC as soon as possible. Anyway, the equipment is free and there is no need to recharge in advance. It is not too late to recharge in advance when you really want to travel on the highway.

This will prevent the future situation of being unable to use the expressway without ETC.

Finally, the absence of ETC in the short term will not affect the up and down expressways, but we are not sure whether banks will give away free equipment near the end, because when that day comes, manual lanes will be cancelled, and ETC will become a necessity. If you were a bank and faced with a large number of car owners eager to install ETC, would you still give it away for free?

Currently, there are only 80 million ETC users, accounting for only 40% of the vehicle fleet. It can be said that the country has a long way to go to achieve the goal of full ETC coverage on highway sections by the end of 2020. Vigorously promoting ETC is a general trend and something that must be done.

If you use ETC to travel on the highway, you will enjoy at least a 50% discount on tolls; in addition, many banks also have cash coupons, exemptions and other preferential activities. For example, when I applied for the Bank of Communications ETC, I was given one as a refund A discount coupon worth 100 yuan is still very good!

Many people have been wondering about a question: I don’t usually take the expressway, do I need to install ETC? This issue is actually a matter of concern to most people. In fact, from July 1, 2020, new models applying for approval should add ETC on-board devices to their optional configurations. This sentence has clearly told everyone that although ETC is not mandatory to install, it is indeed a trend in the future. Nowadays, installing ETC has certain benefits compared to not installing ETC. This mainly refers to equipment and discounts.

Of course, it’s too early to do anything without benefits! It is precisely after seeing the "profit" in "ETC" that banks will spare no effort to promote ETC! Today we will talk about several aspects and how to choose ETC?

Types of ETC

ETC is divided into charge cards, stored value cards and co-branded cards. The stored-value cards we know are Huitong cards, Sutong cards, etc. that many people use. They recharge first and then pay. Debit cards mean consumption first and settlement later.

Here we mainly explain the bank card ETC that cooperates with Expressway, also known as a co-branded card!

This kind of card is basically divided into two types. One is a savings card, which guarantees that there is money in the card in advance; the other is a credit card, which only needs to be processed and the account will be recorded after consumption.

How to choose between stored-value cards and co-branded cards?

What are the quirks of bank ETC?

Although bank ETC seems to be affordable at present, it is not only free of equipment, but also free of annual fees for a certain period. However, when you apply for a bank card, you actually complete the task of the bank, especially for credit cards. It is not easy to promote credit cards. At this time, through the installation of ETC, it actually promotes users to use credit cards!

Final words: If you apply at the bank, be sure to ask if there is a free annual fee? How long is the free period? Will there be additional income in the future?

As for any behavior of the bank, basically you don’t even have to think about it and directly judge that it is for profit. Basically, this judgment will not be wrong. To be realistic, besides money, what else is there in the bank? So banks are not promoting ETC for the sake of making money. Is it possible that it is to facilitate car owners to pass quickly and solve the traffic flow pressure at toll stations? Banks don't have the time.

Of course, we can’t say anything about whether the bank is making money. After all, this is also a bonus given by the trend of social development. Installing ETC on vehicles also makes it convenient for car owners, and the bank’s current crazy promotion is just to seize the market. . After all, there is competition between banks.

Although now, when car owners apply for ETC, banks will provide many discounts, such as giving gas cards, giving car washes, exchanging points for gifts, etc., but banks are not stupid at all. Because ETC has replaced manual toll collection, it is an irreversible trend. On the one hand, car owners can save their own time by using the express lane to pass through the toll station. On the other hand, it also greatly reduces the traffic pressure of vehicle congestion. After all, on the highway, queuing to collect tolls is really a waste of time. If everyone uses ETC and goes directly through the toll station, there will be no congestion.

For banks, now allowing car owners to apply for ETC from their own bank is equivalent to binding a stable customer. In the future, he will have to use this card to recharge ETC. The main profitable business of banks is loans, which has very high requirements on cash flow.

We can calculate that if a certain bank's ETC requires each car owner to recharge 1,000 yuan, and if this bank has one million car owners to recharge, then it will be 1 billion in cash to the bank, and Chinese car owners It must be at least several hundred million.

This is purely about cash, and if it involves banks promoting other financial products, insurance and other businesses to these car owners, the added value will be even greater. Therefore, the current crazy promotion of banks is mainly to acquire customers. This is similar to the early promotion of Alipay on WeChat, which is to obtain precise customers through preferential subsidies, so that everyone can develop the habit of using it, and making money will come naturally.

For car owners, it is actually necessary to install it. After all, this is a trend we can all see. Now banks have subsidies. If you install it, you will take advantage. If you install it later, , then it is estimated that there will not be such a big discount. So, if you should pretend, you should pretend.

This is a document issued by the Ministry of Transport, requiring it to be installed.

Bank marketing is to occupy more markets and obtain more customers. And there are so many discounts now that it’s worth checking out. Industry experts said that as of March this year, there were only more than 80 million ETC users nationwide. With the introduction of the policy, it is expected that by the end of December 2019, the number of ETC users nationwide will exceed 180 million, an increase of 100 million users. Banks will definitely seize this market.

Previously, the "Notice on Vigorously Promoting the Development and Application of ETC on Highways" issued by the Ministry of Transport proposed to fully implement free installation of ETC vehicle-mounted devices and increase installation service outlets. According to the plan, by the end of 2019, the ETC installation rate will reach more than 80%, the ETC utilization rate of vehicles traveling on the expressway will reach more than 90%, and the expressway will basically realize fast toll collection without stopping. According to statistics from the Municipal Transportation Commission, Beijing needs 1.21 million new ETC users before the end of the year. The ETC issuing agency will connect with banks and other institutions as well as gas stations, 4S stores, car repair shops, parking lots and other vehicle centralized places to provide one-stop full-process installation services nearby. At the same time, we will give full play to Internet channel resources, support customers to independently choose products and services, self-register, and self-install. Issuers and cooperative institutions are encouraged to open various forms of online distribution channels such as websites and apps to provide customers with convenient services.

Everything in the world is for profit, and all hustle and bustle in the world is for profit. Banks are commercial institutions, not charitable institutions. The core purpose of commercial institutions is to make profits. The core purpose of all businesses carried out by banks is All in order to obtain higher profits, including actively promoting ETC

In recent times, major banks including Alipay and WeChat have been vigorously promoting ETC business, and now major institutions are giving away etc equipment for free. , and more importantly, in addition to giving away equipment for free, major banks also provide certain discounts on toll fees. For example, after Agricultural Bank of China successfully registers etc., you can use 1,000 points every month to receive etc. toll monthly tickets. From the date of collection, you can enjoy a 10% discount on the monthly etc. toll deduction; China Construction Bank, Bank of Communications, Industrial and Commercial Bank of China, and China Merchants Bank pass A 15% discount is given on all charges; China Guangfa Bank offers a 95% to 92% discount in some areas. However, if the cumulative points consumption in the month exceeds 3,000 yuan, you can enjoy a 20% discount in some places.

In addition to toll discounts, many banks currently offer other preferential conditions, such as free gas cards, free car washes, roadside assistance, etc.

These behaviors of banks seem to be actions of losing money and making money, so why do banks still actively promote etc business? Could it be that the bank is purely doing charity and making it easier for car owners to travel? Of course not. In fact, the most direct reason why banks have been crazily promoting etc in recent times is because of the introduction of policies.

In May 2019, the Ministry of Transport issued a "Notice on Vigorously Promoting the Development and Application of ETC on Highways". The notice implemented a task: comprehensively promote the development and application of ETC nationwide. With free installation work, it is expected to complete 80% of the ETC installation rate in automobiles by the end of the year, and enable 90% of the ETC usage rate in high-speed vehicles.

After the introduction of this policy, 30 provinces have now formulated specific implementation plans.

14 provinces have submitted implementation plans to the provincial people's governments for review, and will also implement free installation policies, provide points discounts on tolls, and encourage financial institutions, Internet and other enterprises to expand discounts through various forms such as the return of points as red envelopes.

Therefore, the biggest reason why banks offer various preferential treatment is due to the influence of policies.

As we mentioned before, a bank is a commercial institution, and its core purpose is to make profits, so everything they do is centered around profits, including promoting etc., and The reason why banks are now promoting etc for free is mainly due to the potential huge market of etc. This potential market is mainly reflected in the following aspects.

First, promote credit cards.

At present, credit cards have become a battleground for various banks, because the potential utilization space of credit cards is very huge. In order to promote credit cards, all banks are actively using various means to promote them, among which etc. is promotion. Credit card is a very important channel.

The current coverage of etc. in my country is only about 80 million vehicles. According to policy requirements, by the end of 2019, the number of vehicles covered by etc. will reach at least 180 million vehicles. This means that the remaining vehicles in 2019 In half a year, 100 million cars will be equipped with etc. Among these users, even if only 50% choose to bind credit cards, the potential number of credit card users is 50 million. This is a very large customer group, and there are cars Relatively speaking, this group has relatively strong credit card spending power, so they are a high-quality customer group that all banks must compete for.

Once these car owners bind their credit cards, banks can not only obtain certain handling fees from tolls, but more importantly, they can promote various activities to encourage these car owners to use credit cards to refuel and wash their cars. , car repairs, etc., this potential profit margin is very large.

Second, the utilization of accumulated funds.

At present, many users of etc. directly bind their savings cards, and etc. who bind savings cards must ensure that there is a certain account balance in the savings card. For some wealthy friends, credit cards It is normal to have a balance of several thousand or even tens of thousands of dollars. These account balances may not be much for a single user, but for millions or even tens of millions of users, each account costs thousands or hundreds of dollars, which adds up to a very large amount of funds, which is useful for easing the difficulty of bank deposits. Very helpful. Moreover, banks with these accumulated funds only need to pay current interest. By using these funds to lend or do other things, banks can obtain interest rates of more than 5%, and the interest margin profits here are very generous.

Of course, in addition to the two potential profit margins we mentioned above, banks can also conduct targeted financial marketing for these car owners, which is also a potential profit margin.

Precisely because the potential market space of etc is relatively large, we have seen that major banks currently do not hesitate to give away equipment for free, and even give certain discounts on tolls to attract more users to use their banks' etc.

However, I think etc. is a win-win situation for the majority of car owners and banks. The banks can obtain certain profits from the majority of car owners, but the majority of car owners can also enjoy certain discounts when traveling at high speeds. In addition, there is no need to queue up when traveling on the expressway, which is also very convenient, so it is still necessary for the majority of car owners to apply for etc.

As the ETC installation incident began to flood the screen, a wave of people installing ETC came in droves. Faced with such a familiar and unfamiliar service, some car owners readily accepted it, while others behaved differently. Confused, after installing this thing, are there any other invisible pitfalls?

It must be installed! Not to mention free. Starting from tomorrow in January, those who do not install will not enjoy the holiday free policy and can only use artificial lanes.

Installed, via high speed convenience.