Core Viewpoint - The credit card industry is transitioning from a focus on scale expansion to prioritizing quality, driven by digital transformation and risk management strategies [1][11]. Industry Overview - As of June 2025, the total number of credit cards and loan cards in China was 715 million, a decrease of 12 million from the previous year, indicating a continued decline in the market [1]. - Many banks are experiencing a slowdown in credit card loan balance growth, with some reporting negative growth as they shift towards more cautious operational strategies [1]. Asset Quality - The credit card non-performing loan (NPL) ratios show a divergence among banks, with major state-owned banks like ICBC and CCB having NPL ratios above 2%, while Agricultural Bank of China has a lower ratio of 1.52% [2]. - The overall NPL ratio for the industry is under pressure, with some banks facing rising NPLs despite efforts to control them through enhanced collection and write-off measures [2]. Risk Control and Quality Optimization - Risk control capabilities are becoming a key differentiator among banks, with many adopting advanced technologies like AI and big data to enhance their risk management processes [3]. - As of mid-2025, ICBC's NPL ratio was 2.6%, CCB's was 2.35%, and ABC's was 1.52%, while CMB maintained a low NPL ratio of 1.75% [3][4]. - CMB's proactive risk management strategies have led to a stable NPL balance of 161.53 billion yuan, with a consistent NPL ratio [4]. Digital Transformation - Digital transformation is reshaping the service models and operational efficiency of credit card businesses, with banks implementing full-process digital coverage from customer acquisition to risk management [9]. - By mid-2025, the monthly active users (MAU) of mobile banking apps in China fluctuated between 650 million and 700 million, with a growth rate between -1.2% and 4.6%, indicating market saturation [9][10]. Scene Deepening and Ecological Collaboration - Banks are focusing on deepening customer engagement through targeted marketing and product offerings tailored to specific consumer needs, such as youth and travel [7]. - CMB is leveraging a dual-card model to enhance collaboration with e-commerce and other sectors, while other banks are also exploring innovative product offerings to attract younger customers [7][8]. Future Outlook - Leading banks are preparing for industry downturns and structural changes by enhancing risk management, ecological collaboration, and digital transformation [11][12]. - The future competitive edge for banks will lie in their ability to manage risks, optimize operations, and innovate continuously rather than merely expanding their scale [11][12].