Nan Fang Du Shi Bao·2025-07-25 15:29Core Viewpoint - The credit card industry is undergoing significant changes as banks, including China Merchants Bank (CMB), adjust their high-end credit card offerings in response to regulatory pressures and market competition, aiming for sustainable business models rather than short-term promotions [2][3][5]. Group 1: Changes in Credit Card Offerings - CMB announced that starting September 1, 2025, it will replace its dual-branded high-end magnetic stripe credit cards with chip versions, introducing new spending thresholds for benefits [2]. - The classic platinum credit card now requires an annual spending of 180,000 yuan to redeem 3,600 yuan in annual fees, while supplementary cards have a new threshold of 100,000 yuan [2]. - Other banks, such as Everbright Bank and SPDB, have also announced adjustments to their high-end credit card benefits, including changes to lounge access and reward redemption [3]. Group 2: Industry Trends and Responses - The credit card sector is experiencing a broader trend of increasing usage thresholds, adjusting point systems, and reducing high-end benefits across multiple banks [3][5]. - CMB's credit card circulation decreased by 259,100 cards to 9,685,900 by the end of 2024, with a decline in transaction volume by 8.23% year-on-year [5]. - The adjustments in high-end benefits are seen as a response to the "involution" phenomenon in various industries, aiming to shift focus from aggressive expansion to high-quality development [5][6]. Group 3: Cost Management and Value Creation - High-end credit card benefits are significant resource consumers for banks, with operational costs exceeding 1,000 yuan per card for certain privileges [7]. - The industry is facing pressure from third-party entities exploiting high-end benefits, leading to increased costs for credit card centers [7]. - The shift towards rationalizing benefits is intended to encourage banks to focus on sustainable practices and value creation in the credit card sector [8].