Core Viewpoint - The recent approval by the Liaoning Financial Regulatory Bureau for the termination of operations of several credit card centers indicates a shift in the banking sector's approach to credit card business management, moving from centralized operations to localized management to enhance efficiency and reduce costs [1][2]. Group 1: Industry Trends - Nearly 40 credit card centers from various banks, including Bank of Communications, Minsheng Bank, and Guangfa Bank, have received regulatory approval to cease operations this year, reflecting a broader trend in the industry [1]. - The credit card market in China is nearing saturation after over 20 years of rapid growth, with the total number of credit cards and combined credit cards dropping from a peak of 807 million in June 2022 to 721 million by the first quarter of this year, a decrease of approximately 86 million cards in less than three years [2]. Group 2: Strategic Adjustments - Banks are encouraged to deepen their focus on the existing market by innovating products tailored to different customer segments, shifting the competitive focus from "new card issuance" to "active card usage" [3]. - Increased investment in technology is essential, as online customer acquisition costs are lower and more valuable; banks should leverage digital transformation opportunities and enhance risk management through AI and big data [3]. - The transition to localized management of credit card operations should not merely consolidate operations but also create synergies with retail banking services, enhancing customer engagement and providing comprehensive service offerings [3].

Group 1 - The core viewpoint of the articles is that commercial banks are intensively closing credit card branches located in different regions, reflecting a strategic shift in response to slowing retail business growth [1][2][5] - As of 2024, the China Merchants Bank reported a decline in credit card transaction volume by 8.23% and a decrease in non-interest income from credit cards by 11.3%, indicating a broader trend of declining credit card performance across banks [6][5] - The China Banking Regulatory Commission has approved the closure of multiple credit card centers for various banks, including the Bank of Communications and Minsheng Bank, highlighting a systemic reduction in credit card operations [2][3] Group 2 - The transition from vertical management to localized management in credit card operations is a key reform for the Bank of Communications, aimed at providing integrated financial services to local customers [3][4] - As of the end of 2024, the Bank of Communications reported a credit card loan balance of 538.4 billion yuan, with a year-on-year growth of 9.94%, although the number of active credit cards decreased by 11.66% [4][5] - The overall credit card market is facing challenges, with the total number of credit cards and credit card transactions declining, as reported by the People's Bank of China [5][6] Group 3 - Many banks are experiencing negative growth in retail banking revenue and profits, with state-owned banks like ICBC and Bocom reporting significant declines in personal financial business profits [6][7] - Bank executives believe that the recovery of retail banking will depend on the future economic cycle and improvements in consumer data, with expectations for credit card business conditions to improve as consumption-promoting policies take effect [7]