The current status of credit cards

Credit card overdrafts are becoming more and more serious. Are people’s attitudes towards consumption biased, or have banks gone bad?

With the economic progress of society, it has gradually become more closely integrated with international standards. The concept of advanced consumption in Western countries has been accepted by people. It is called living in the present and enjoying the future. In fact, while advancing consumption, , you are using your own credit, which is also the familiar credit rating. If your credit rating is very poor, no financial institution may be willing to lend you money in advance. If you have a certain ability to make money, at the appropriate time conditions. Preemptive consumption is okay because the money you "should" spend is saved for investment or other living expenses. This is a "money begets money" model.

Advanced consumption is A double-edged sword. Use it well to coordinate funds in life. If you use it poorly, it will be a boulder on your shoulders. Riding the bull and watching the bear believes that only rational consumption is within the scope of one's ability. "Borrowing" "Advanced credit limit, and the fact that you can borrow and repay it will allow you to enjoy the discount and not be troubled by future repayments. You can use the credit card as a financial management tool. If your cash is invested, as mentioned in the previous article , you use the card for consumption, which is equivalent to using cash without interest, and you can also get the financial interest of your cash. Of course, you must pay back the money on time, otherwise the cost of default will be high and it will not be worthwhile.

Credit card consumption is the demand preference of some consumer groups and is also a consumption habit. With the development of the economy and changes in the social environment, electronic technology has become more and more popular, and people have gradually moved away from the habit of cash payment. Just kidding, Now you have no chance to pick up money while walking on the street. This also illustrates the current situation of social development. Pre-consumption is just a derivative of the popularity of credit cards. Credit cards themselves do not take the blame. In fact, the emergence of credit cards has also alleviated the pain of some people. Due to economic pressure and temporary difficulties, what we need to guide is the consumption concept of rational use of credit cards, rather than putting the cart before the horse and promoting the concept of advanced consumption.

Current research on credit card business at home and abroad

With the improvement of social and economic development, people's lifestyles are constantly updated, and living standards have improved significantly. In recent years, my country's bank credit card business has become a tool and form of consumer credit. It has become the focus of people's social life. When people use bank credit cards, they are also enjoying the convenience that credit cards bring to their lives. Nowadays, credit cards make people more convenient and save money in the process of shopping and consumption. The cumbersome process of cash payment has been eliminated. As people's quality of life improves, their consumer psychological needs are gradually increasing. The development of my country's bank credit card business has also improved the frequency and efficiency of consumption to a certain extent.

How many people still use credit cards now?

Speaking of credit consumption, people are no longer unfamiliar with it. Credit cards were once one of the status symbols of domestic people. In recent years, Alipay’s Ant Huabei And JD.com’s JD.com Baitiao has quickly become popular, almost reaching a phenomenal scale of use. Recently, many people have raised the question of how many people will use credit cards in China by 2019, and what are the biggest advantages of credit cards compared with Huabei and Baitiao. ? Will the number of cardholders further increase in the future?

From the perspective of usage time, credit cards have a significantly longer history. Credit cards were initially used as a standard for businessmen in China, and they are easy to use. A certain overdraft limit not only meets certain turnover needs, but also saves time, has a more business-like atmosphere, and has been sought after by people for a long time. However, after the emergence of mobile payment, the threshold for convenient payment has been lowered. Regardless of the price of a smartphone, payment can be completed by simply scanning a code, making people's life consumption more convenient. In addition, many P2P platforms represented by Alipay have launched credit consumption services. Overdraft limits are no longer exclusive to credit cards, and the threshold has been lowered, making them popular in a short period of time.

If the initial P2P credit consumption is often limited to e-commerce platforms, last year Alipay’s Ant Huabei also supports offline payment scenarios, coupled with the marketing and promotion of a series of activities such as Alipay Huabei red envelopes, People seem to be increasingly accustomed to using this credit consumption business, which has extremely low thresholds and is extremely convenient.

This will naturally have a certain impact on the issuance of credit cards. Judging from the promotion of credit card applications and more abundant preferential activities by major commercial banks, the competition between online credit consumption business and traditional credit cards is in a state of fierceness, and the competition between commercial banks The anxiety seems to be stronger.

Looking at the user portraits of the two, for young people, the use of some online credit consumption services such as Ant Huabei, JD.com and Baitiao has become more common, especially among students who spend relatively little money. The aspect is also relatively single, mainly focusing on online shopping. Some services such as Ant Huabei have more prominent advantages of low threshold and are more popular than credit cards. However, in physical shopping and consumption, the advantages of credit cards still exist. Among many domestic P2P platforms, only Alipay and Ant Huabei currently support offline payments on a large scale. Credit cards are still the mainstream in this scenario, so the current development and application of the two Judging from the current situation, this competition is evenly matched.

According to statistics at the end of 2018, there are 0.49 credit cards per capita in the country. The number of credit cards issued by the five major mainstream banks: Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank has exceeded 100 million. Domestic commercial banks have issued more than 100 credit cards. The number totaled 628 million, and the credit limit reached 13.98 trillion yuan. From this point of view, customers with credit cards account for about 20% of the total bank customers. They have maintained a rapid growth over the past 30 years, and there is still a lot of room for growth in the future.

Looking at the relationship between P2P platforms and commercial banks, although the emergence of P2P platforms and their expanding business levels have had a certain impact on traditional commercial banks, fundamentally speaking, P2P platforms cannot be separated from banks and stand alone. exist. Currently, P2P platforms are also planning closer cooperation with commercial banks. In addition to mobile payments and simple credit consumption, the integration of some financial products such as funds is also being actively explored.

Judging from user feedback, online financial management is more convenient and less difficult, which allows banks and P2P platforms to find broader opportunities for cooperation and greater potential for business expansion in the future. In addition, it is now common for P2P platforms to add the function of credit card repayment. This shows that under the background of the continuous improvement of the current credit system, the interoperability between credit consumption businesses has also been further strengthened. It can be said that online Online credit consumption business and the use of credit cards in offline scenarios have formed a certain complementarity, covering people's daily lives more comprehensively.

It is worth noting that credit consumption is a double-edged sword. Judging from years of development, it seems to be more suitable for people with strong self-control. Consumption is a key factor in stimulating macroeconomic growth. We also advocate Moderate consumption, but the behavior of blindly overdrafting credit without considering the actual income and future expectations should be corrected and avoided.

Objectively speaking, credit consumption is spending tomorrow’s money to fulfill today’s dreams. It enhances people’s happiness in life to a certain extent and also plays a significant role in promoting social and economic development. However, Credit consumption has caused some people to fall into debt difficulties, and there are many examples of even malicious breach of trust. Therefore, we must always remain rational about credit consumption. Only reasonable application can help our lives and improve our happiness.

This article is an original article of "Financial Huitongche" and may not be reproduced without authorization! If you like the article, you can add it as a follower. Your support is the editor’s biggest motivation. (The above pictures are all from the Internet)

Marketing Paper above 3000 (2)

Marketing Paper above 3000 Part 2

"Commercial Bank Marketing Issues" A preliminary study"

Abstract Commercial banks are comprehensive financial enterprises that pursue profits, and marketing capabilities are an indispensable means for major banks to create value. Therefore, if commercial banks want to better pursue profits and continuously make progress, they must pay attention to the construction of marketing systems. This article analyzes the problems existing in the current marketing system of commercial banks based on the credit card sales status of commercial banks, and gives corresponding suggestions for these problems.

Keywords Credit Card Current Situation Issues and Suggestions

1. Credit Card Sales Current Situation and Reason Analysis

Currently, commercial bank marketing is divided into corporate and retail, and retail It includes savings, agency, credit card and other parts. In our country, credit card business profits currently account for less than 3% of the bank's total profits, which means that my country's commercial banks' credit card business profit margins are huge.

However, the current retail business of my country's commercial banks is not ideal, especially the sales of credit cards. In addition, the bad overdraft rate of credit cards remains high, and the activation rate of credit cards is not high. The existence of these problems is due to the following reasons:

(1) Competition among major commercial banks is fierce

Major banks have mature credit card management systems and personnel teams, and have strong Supported by fees, it leads the credit card market, which makes the development of the bank's credit card business difficult and stressful.

(2) Publicity channels are not smooth

Insufficient human resources support, most employees are relatively indifferent to the credit card business, lack publicity awareness, and there are not many activity folding outlets, which seriously affects Publicity and promotion of various activities and new products.

(3) Each branch does not pay much attention to credit card issuance and is not active in issuing cards

Most branches do not pay attention to credit card issuance, the quality of incoming items is not high, and some employees even issue cards in serious violation of regulations. Moreover, card issuance mainly relies on the direct sales team, which brings about two problems: first, branch branch resources are wasted; second, direct sales have no resources and run all over the street. It is very hard to do, cannot produce enough, and there are potential adverse risks.

(4) It is difficult to promote merchants in county branches

Firstly, county branches do not have full-time staff engaged in credit card sales business; secondly, the number of cards is small, and each activity requires a relatively high investment. , if merchants in county branches want to promote it, they will have to invest a lot; if they do not advance, the card issuance and card activation of each branch will be greatly affected.

(5) Credit card card quality is poor and the product is single

In the early days of credit card issuance, the bank management system was not sound and the card issuance work was still in the exploratory stage. Due to the lack of professional guidance, card issuance Inadequate experience, employees’ marketing skills are not strong, and they do not know how to screen target customers. In order to complete the card issuance quota, some employees randomly search for customers and fail to meet the “three-person meeting”. Some employees even falsely check the boxes on the application form to mislead the backend. Approval personnel, resulting in low quality credit card bodies. In addition, the credit card products are not rich enough, the products are single, there are no leading products, and the brand effect with bank characteristics has not been formed.

2. The above-mentioned status quo reflects the problems existing in bank marketing

(1) Insufficient human resources support, low quality of business training, especially insufficient external professional training

At present, new businesses and new products are emerging in an endless stream, but tellers and account managers lack experience in agency sales. In particular, there is no over-the-counter professional sales training on financial products, insurance products and upcoming fund products. As an external The marketing team and the lobby assistant team that serves the business hall have not received professional knowledge and support, and there is no professional training for this. Their service awareness, marketing skills, risk prevention and other knowledge are very lacking. As the external window of the bank, , affecting the bank's brand image.

(2) Weak marketing awareness and no segmentation of the market

In view of the fierce competition among major banks, each bank is unable to scientifically segment the market and select target markets , unable to accurately analyze actual customers and potential customers, so as to better develop products with their own characteristics for specific customers. Banks often offer high interest rates to attract customers, which not only brings in large amounts of deposits, but also places a heavy financial burden on the banks. Not only did this not bring substantial profits and gains to the banks, but it also brought a heavy burden to the banks.

(3) Service and customer relationship management lag behind and are difficult to adapt to the needs of modern financial competition

First, there is a lack of scientific customer relationship management, a lack of customer information collection mechanism and efficient customer analysis Public treasury makes it difficult to optimize the customer structure, share customer information, and implement hierarchical service strategies. Second, there is a lack of scientific and reasonable business processes, and the main focus cannot be on identifying customers, mining customers and optimizing services. The customer handling business cycle is long and has many links, making it difficult to improve service efficiency. The third is the lack of humanized and high-quality services. The high-quality services are still superficial, and it is impossible to seriously study customer needs and carry out targeted high-quality and in-depth services.

(4) Lack of brand-name products with each bank’s own business characteristics

In recent years, major financial products have emerged one after another, and financial products have been constantly updated. However, each bank has not developed products based on its own characteristic resources. , develop financial products with their own characteristics for the bank's customers, and more of them just imitate. For example, each bank has a single credit card product and lacks differentiated competitiveness.

Some banks only have four credit card products: standard card, business card, Tianxia co-branded card, and Chuangyuan co-branded card. Therefore, all banks need to focus on the needs of different consumer groups, work hard on the additional functions of financial products, provide value-added services to customers, and truly be customer-centric.

Generally speaking, the main reason is that the current marketing methods of various banks are still at a low tactical level. Bank marketing methods are scattered and lack systematicity. They have not truly formed a complete system and have not yet formed a complete system. To comprehensively integrate marketing activities from a strategic level, a systematic marketing system and management model have not been established.

3. Some suggestions for promoting the construction of bank marketing system

To solve the current problems of various banks, the key is to transform and upgrade the marketing concept and establish a complete marketing system , flexibly use various marketing methods.

(1) Carry out various marketing activities to enhance brand image

Help county branches to comprehensively carry out local financial product sales activities, actively explore new forms of activities, and improve bank product sales activities. Covering the entire jurisdiction of each city and establishing a good marketing environment within each major city. Continue to provide good service to sub-branches and help each sub-branches complete various retail assessment indicators. Help county-level branches build a network of preferential merchants to facilitate their retail business. At the same time, according to the business development and assessment indicators of the head office, the branches are guided to promote large-amount installments and increase the branch's intermediary business income through installment business and other leading products.

(2) Continuously promote the construction of channel environment in all banks

Adhere to the principles of total volume control and connotation development, focus on economic and social benefits, and achieve both manned and unmanned, tangible and intangible A development strategy that emphasizes both comprehensiveness and characteristics. According to the characteristics of the county, make full use of the advantages of local economic and financial resources to develop the network construction of county branches; continue to transform non-standard branches to improve the service image of the bank as a whole; continue to strengthen the construction of off-line self-service banks in county branches , providing strong support for the development of bank card business of county branches. At the same time, we will increase efforts to promote the migration of traditional businesses to electronic channels, reduce service costs through tangible channels, and realize the transformation and upgrading of outlet functions as soon as possible.

Actively carry out the construction of preferential merchant network, strengthen the quality control of merchants and preferential merchants through dedicated personnel, cover the preferential merchant network to various county-level cities, comprehensively improve the value-added service capabilities of financial products, and create good channels environment.

(3) Strengthen the construction of the marketing team, do a good job in market analysis, optimize the marketing environment, and increase marketing efforts

Strengthen the cultivation of the comprehensive quality of employees and improve the cohesion and combat effectiveness of the team. Adhering to the people-oriented principle and guided by the scientific outlook on development, we give full play to the strengths of our employees and mobilize their enthusiasm for work. In response to situations where employees are young, have weak ability to resist frustration, have heavy card issuance tasks, and have high work pressure, we organize employee discussions from time to time to listen to their voices, provide employees with a certain degree of psychological counseling, and take active and effective measures to enrich Employees’ spare time life helps employees relieve stress and stimulate their enthusiasm for work. Through training, learning and colorful activities, we can effectively improve the quality and business skills of employees, and cultivate a professional credit card team that is multi-functional, enterprising, united, innovative, and striving for success. In addition, the work performance and performance assessment of employees are strengthened, and unqualified employees are eliminated through the "survival of the fittest" system, thus ensuring the efficient, healthy and sustainable development of the marketing teams of each bank.

Carry out market research and actively carry out marketing activities. To achieve economies of scale, analyze the external marketing environment, that is, conduct market research and analysis on the credit environment, acceptance environment, competitive environment, demand environment, etc., segment the consumer customers and target customers in the market; conduct market research and analysis on different industries, different ages, and different genders. As well as the wealthy class, middle class, and middle-income groups with advanced consumption awareness, we conducted surveys and analyzes, carried out targeted merchant preferential activities, and carried out installment payment gift activities.

Actively explore differentiation strategies and strive to enrich the credit card product system. Each bank must continue to innovate its products and form brand-name products with its own business characteristics.

(4) Strengthen the promotion of marketing ideas and mobilize the enthusiasm of employees

The entire bank unified its thinking, and with the support of information technology, operations and other relevant departments, started the retail organizational structure and reform of supporting facilities.

Increase expense support, and allocate part of the expenses to match the special expenses of the head office based on the actual situation of the bank and local market competition, mobilize the enthusiasm of each branch, and further improve the incentive and restraint mechanism with sales performance and value contribution as the core, so that each branch can The branch took the initiative in network construction, personnel and organizational allocation, and resource allocation to lay a solid foundation for the future development of the branch's retail business.

References

[1] Written by Pesu Luo, translated by Zhang Yun et al. Banker Marketing [M]. China Planning Press, 2001: 396.

[2] Gu Xuan. Marketing Management of Chinese Commercial Banks[M]. Social Science Literature Press, 2000.

This ends the introduction to the current situation of credit cards and the analysis of the current situation of credit cards. Don't know if you found the information you need?