Core Insights - The direct banking model, once a highlight in the fintech wave, is undergoing significant changes, with Beijing Bank announcing the integration of its direct banking services into its "Jingcai Life" mobile banking app by June 25, 2025, marking the first such integration in China [2] - Direct banks, which operate without physical branches and provide services through electronic channels, initially saw explosive growth after their launch, but have faced challenges since 2019, leading to a decline in visibility in annual reports [2] - Several banks, including Hankou Bank and Minsheng Bank, have already integrated or shut down their direct banking apps, raising concerns about the future of direct banking in the market [2] Industry Analysis - Experts attribute the challenges faced by direct banks to factors such as organizational structure, resource allocation from parent banks, and market competition, indicating a lack of a complete service ecosystem and unique competitive advantages [3] - The overlap between services offered by direct banks and traditional mobile banking apps has led to resource wastage, as banks invest in redundant functionalities [3] - The decline of internet traffic benefits and rising customer acquisition costs pose severe challenges to the operational models of direct banks [3] Future Directions - Recommendations for the future of direct banks include developing niche services to create differentiated offerings, enhancing user loyalty through customized financial products [4] - Integrating direct banking functions into mobile banking apps can provide users with more centralized and efficient services, improving user experience and reducing operational costs [4] - The trend of integration and transformation in direct banking is expected to continue, with more banks likely to face similar decisions in the future [4]