Core Insights - The credit card industry in China is experiencing a significant downturn, with issuance volumes declining for ten consecutive quarters, leading to a total of 721 million credit cards by Q1 2025, down from a peak of 807 million in 2022 [4][5][6] - Promotional activities, such as offering bicycles for credit card sign-ups, reflect the intense competition and pressure on banks to attract new customers, despite the overall decline in credit card usage [2][5] - The industry is shifting from a growth phase to a focus on existing customer retention and service quality, as the previous strategies of aggressive customer acquisition are no longer effective [5][24] Industry Trends - The credit card issuance cost has increased significantly, with costs reaching up to 200 yuan per card, compared to earlier years when no incentives were necessary [4][5] - Credit card delinquency rates have risen, with the overdue amount exceeding 123.96 billion yuan by the end of 2024, marking a 26.31% year-on-year increase [5][6] - The number of credit cards in circulation is decreasing, with over 40 credit card centers shutting down since 2025, indicating a contraction in the market [6][7] Market Dynamics - The market is now characterized by a "stock game" where banks must focus on retaining existing customers rather than acquiring new ones through incentives [5][24] - Many banks are reducing the benefits associated with credit cards, such as airport lounge access and other premium services, in response to the changing market conditions [6][7] - The trend of discontinuing co-branded credit cards is evident, with numerous banks ceasing to offer popular co-branded products due to low engagement and inefficiency [7][8] Future Outlook - The credit card industry is expected to evolve towards providing enhanced customer experiences and tailored services, rather than merely focusing on the volume of cards issued [19][24] - The integration of advanced technologies such as AI and big data is anticipated to play a crucial role in improving service delivery and customer engagement in the credit card sector [19][24] - Despite the challenges, credit cards remain a vital tool for consumer finance, with a total outstanding credit card loan balance of 8.71 trillion yuan, significantly higher than that of consumer finance institutions [19][24]
特稿|消失的信用卡:从“跑马圈地”到“潜行”创新