Core Viewpoint - The adjustment of credit card installment services by banks is a response to the current development environment, focusing on risk prevention and consumer protection, which will ultimately lead to a sustainable improvement in the quality of credit card business [1][4]. Group 1: Business Adjustments - Multiple banks have announced the cessation of credit card self-selected installment services, with Everbright Bank set to discontinue this service by December 9, 2025, affecting previously activated cards [2]. - Industrial and Commercial Bank of China will stop offering installment plans longer than 36 months starting December 5, 2023, while Postal Savings Bank has introduced shorter installment options [3]. - The adjustments reflect a trend towards more refined and consumer-friendly banking practices, with banks like Everbright Bank modifying their overdraft interest rates to be more dynamic based on customer profiles [4]. Group 2: Market Trends - The credit card market is experiencing a contraction, with a reported decrease of 6 million cards issued in the second quarter of 2025, totaling 715 million cards [5]. - The decline in credit card usage is attributed to a weakening macroeconomic environment, affecting consumer willingness to use credit cards, while the growth of consumer loans and digital payment services is also influencing credit card balances [6]. - The industry is moving towards a phase of "precision farming," emphasizing refined customer acquisition, operations, and risk control, with a need for innovation in products and services [6].

Core Viewpoint - Recent adjustments in credit card installment services by multiple banks signal a significant transformation in the industry, moving from a scale-driven approach to a value-driven strategy, emphasizing compliance and quality [1][4]. Summary by Sections Credit Card Installment Business Adjustments - Banks like Industrial and Commercial Bank of China and Everbright Bank have announced the cessation of installment plans exceeding 36 months and the discontinuation of self-selected installment features, indicating a shift in operational strategy [1][3]. - Everbright Bank will terminate its self-selected installment service on December 9, 2025, affecting new transactions while existing installment agreements remain unchanged [2]. - Industrial and Commercial Bank of China will stop offering installment plans longer than 36 months starting December 5, 2025, as part of its risk management strategy [3]. Reasons for Adjustments - The adjustments are aimed at optimizing risk structures and enhancing business compliance, responding to regulatory guidance to manage consumer debt levels effectively [3][4]. - The changes are also intended to reduce potential non-performing assets and improve capital efficiency, addressing the complexities of long-term debt management [3]. - The adjustments reflect a threefold consideration: responding to regulatory requirements, optimizing product structures, and reducing overall costs amid narrowing net interest margins [3]. Industry Transformation - The credit card industry is transitioning from a growth-focused model to one centered on risk control, scenario-based services, and user experience, marking the end of aggressive market expansion [4]. - The current market dynamics show a decline in total credit card numbers, while leading institutions maintain stable growth in card circulation, contrasting with the declining balances faced by smaller banks [4]. - Future industry directions should focus on digital integration, service ecosystem development, and deepening customer value to achieve a qualitative leap from quantity to quality [4].

Core Insights - Recent adjustments in credit card installment business rules by several banks, including Industrial and Commercial Bank of China (ICBC) and China Everbright Bank, have raised significant market attention regarding the implications for the industry [1][4][7] Group 1: Changes in Credit Card Installment Services - China Everbright Bank announced the discontinuation of its "self-selected installment" feature effective December 9, 2025, which previously allowed automatic installment for all transactions over 100 RMB or 20 USD/EUR into 12 monthly payments with fees ranging from 0.5% to 0.8% [1][4] - ICBC will stop offering installment options longer than 36 months starting December 5, 2023, eliminating the previous 48 and 60-month options while retaining 1-36 month choices for new transactions [4][5] - Longjiang Bank had already ceased its credit card flexible installment service earlier in June 2023, indicating a broader trend across various types of banks [7] Group 2: Industry Implications and Consumer Impact - The adjustments are driven by the need to adapt to current market conditions, as long-term installment options have contributed to credit card risk, and the shift aligns with deepening financial consumer protection principles [7][8] - Analysts suggest that these changes may lead to a short-term loss of credit card installment business and a slowdown in installment fee growth, but they are expected to promote a transformation in credit card services towards higher quality [7][8] - The reduction in long-term installment options encourages consumers to reassess their spending habits and manage their debt more responsibly, fostering a healthier credit culture [7][8] Group 3: Rising Credit Card Delinquency Rates - The People's Bank of China reported that the total amount of credit card loans overdue for more than six months reached 123.964 billion RMB by the end of 2024, marking a 26.31% year-on-year increase [8] - The market has seen a significant rise in the transfer of non-performing loans, with a 190.46% year-on-year increase in the first quarter of 2023, particularly in credit card non-performing loans, which surged by 879.25% [8] - Major banks, including China Construction Bank and China Everbright Bank, have been actively transferring non-performing credit card loans, indicating a critical need for banks to manage their credit risk more effectively [8]

Core Viewpoint - The credit card business of commercial banks is entering a critical phase of stock competition and deep transformation, with several banks adjusting their installment business rules, raising market concerns [1][2]. Group 1: Industry Adjustments - On October 22, Everbright Bank announced it will officially discontinue the "self-selected installment" service starting December 9, 2025, affecting all credit cards that had this feature activated before that date [1]. - Industrial and Commercial Bank of China (ICBC) will optimize the installment periods for credit card bill installments and consumption transfers, ceasing long-term installment services exceeding 36 months, effective December 5, 2025 [1]. - The concentrated actions of multiple banks outline a clear trajectory of industry adjustments [1]. Group 2: Factors Driving Changes - Regulatory requirements are compelling banks to adjust installment business rules, ensuring compliance and preventing excessive credit issuance [2]. - Banks aim to optimize credit structures and control financial risks, as rising credit card delinquency rates necessitate adjustments in installment fees, terms, and entry thresholds [2]. - The need for sustainable development is pushing banks to shift from aggressive growth strategies to refined calculations of funding, operations, and risk costs [2]. - The adjustments are intended to reshape customer relationships, moving from a reliance on installment fees to enhancing customer loyalty through diversified services [2]. Group 3: Impacts on Banks and Customers - In the short term, banks may face challenges such as slowed growth in installment business scale and direct impacts on fee income [3]. - Long-term benefits include improved asset quality and a shift towards digital and refined customer operation models [3]. - Customers with lower credit qualifications may experience tighter installment qualifications and reduced favorable rates, while overall transparency in installment costs and repayment terms is expected to improve [3]. Group 4: Recommendations for Banks - Banks are encouraged to integrate financial services deeply into diverse consumption scenarios, moving beyond traditional "payment + installment" frameworks [4]. - Enhancing digital service experiences through financial technology and personalized services is recommended, utilizing big data and AI for better risk pricing [4]. - Innovation in products and models is essential, with flexible installment options and increased customer autonomy in repayments [4]. - Ongoing customer education on financial knowledge and responsible borrowing is crucial to foster a rational consumption mindset [4].

Core Viewpoint - The credit card business of commercial banks is entering a critical phase of stock competition and deep transformation, with multiple institutions adjusting their installment business rules, raising market attention [1][2]. Group 1: Industry Adjustments - On October 22, Everbright Bank announced it will officially discontinue the "self-selected installment" service starting December 9, 2025, affecting previously activated accounts but not impacting outstanding installment transactions [1]. - Industrial and Commercial Bank of China (ICBC) will optimize its credit card installment and consumption transfer installment services, ceasing long-term installment options exceeding 36 months, effective December 5, 2025 [1]. - The concentrated actions of various banks outline a clear trajectory of industry adjustments [1]. Group 2: Factors Driving Changes - Regulatory requirements are compelling banks to adjust installment business rules, ensuring compliance and preventing excessive credit issuance [2]. - Banks aim to optimize credit structures and control financial risks, as rising credit card delinquency rates necessitate adjustments in installment fees, terms, and entry thresholds [2]. - The need for sustainable development is pushing banks to shift from aggressive growth strategies to refined financial management and pricing strategies [2]. - The adjustments are intended to reshape customer relationships, moving from a reliance on installment fees to enhancing customer loyalty through diversified services [2]. Group 3: Impacts on Banks and Customers - In the short term, banks may face challenges with slowed growth in installment business and reduced fee income, but long-term benefits include improved asset quality and a shift towards digital and refined customer operations [3]. - Customers with weaker credit profiles may experience tighter installment qualifications and reduced favorable rates, while overall transparency in installment costs and repayment terms is expected to improve [3]. - The credit card business is transitioning from a focus on scale expansion to a more detailed approach, evolving into a comprehensive financial service platform [3]. Group 4: Recommendations for Banks - Banks are encouraged to integrate financial services deeply into diverse consumption scenarios, providing comprehensive solutions that combine payment, installment, and benefits [4]. - Enhancing digital service capabilities through financial technology, utilizing big data and AI for personalized service, and implementing differentiated risk pricing are recommended [4]. - Innovation in products and models, such as flexible installment options and customer education on rational borrowing, is essential for improving customer experience and maintaining profitability [4].

Core Viewpoint - The credit card installment business of commercial banks is undergoing a period of stock competition and transformation adjustments, with banks like Everbright Bank and Industrial and Commercial Bank of China (ICBC) making significant changes to their installment services to focus on more standardized and risk-controlled products, responding to regulatory guidance on consumer debt [1][4]. Summary by Sections Business Adjustments - Everbright Bank announced it will discontinue its self-selected installment service starting December 9, 2025, affecting all new transactions, while existing installment agreements will remain unchanged [2][3]. - ICBC will adjust the installment periods for its credit card bill installment and consumption transfer installment services, eliminating options for 48 and 60 months, effective December 5, 2025, while maintaining options from 1 to 36 months [3][4]. Reasons for Adjustments - The adjustments aim to optimize risk structures and enhance business standardization, as flexible installment options complicate monitoring of fund usage and long-term debt management [4][5]. - The changes are also a response to high consumer leverage and declining consumer loan rates, addressing the mismatch between credit risk and returns associated with long-term installments [4][7]. Consumer Impact - The reduction in installment options may lead consumers to be more cautious in evaluating their financial situations before making purchases, potentially fostering healthier consumption habits [6][7]. - Banks are encouraged to innovate beyond mere adjustments, focusing on tailored installment services for specific consumption scenarios and enhancing financial health management tools for users [6][7]. Industry Implications - The adjustments by major banks are expected to trigger a chain reaction across the industry, leading to more institutions adopting similar risk control and compliance measures [7]. - The credit card installment market may see a shift from long-term, high-risk models to a more reasonable term structure, with competition focusing on risk management, user experience, and service capabilities [7].

Core Insights - The total number of credit cards and combined loan cards in China reached 715 million by the end of Q2 2025, a decrease of 6 million from the previous quarter, marking the 11th consecutive quarter of decline since Q3 2022 [1] - In response to the overall contraction in credit card business, banks are increasingly focusing on installment services as a key growth area, optimizing product design, lowering installment rates, and simplifying application processes to attract more customers [1][2] - The shift in the credit card industry reflects a transition from broad customer acquisition to refined management of existing customers, with a focus on deepening customer engagement rather than merely expanding market share [1][4] Industry Trends - The decline in card issuance is attributed to market saturation, prompting banks to clean up inactive cards and high-risk customers, while regulatory policies discourage using card issuance volume as a sole performance metric [1][4] - Banks are implementing various strategies to enhance installment services, including fee adjustments for large purchases like home renovations and appliances, with some banks offering annualized rates as low as 2.16% [2][3] - Simplification of processes is also a focus, with banks introducing features like "one-click installment" through mobile banking apps, significantly reducing approval times from several days to minutes [3] Strategic Focus - The push for credit card installment services aligns with national policies aimed at promoting consumption, indicating a strategic shift from volume-based growth to value-based customer engagement [4] - Banks are advised to maintain strict risk control, ensure transparency in fee structures, and avoid misleading marketing practices to protect consumer rights [5] - A sustainable development model for credit card businesses is suggested, emphasizing a customer-centric ecosystem that leverages intelligent risk control, deep integration into consumer scenarios, and digital operations to enhance service value [5]

Core Insights - The People's Bank of China reported a decline in the total number of credit cards and combined loan cards to 715 million by the end of Q2 2025, a decrease of 6 million from the previous quarter, marking the 11th consecutive quarter of decline since Q3 2022 [1] - In response to the overall contraction in credit card business, banks are increasingly focusing on installment services as a key growth area, optimizing product design, lowering installment fees, and simplifying application processes to attract more customers [1][2] Industry Trends - The continuous decline in card issuance is attributed to market saturation, with banks actively cleaning up dormant cards and high-risk customers, and regulatory policies discouraging the use of card issuance volume as a sole performance metric [2] - The shift in focus from scale expansion to quality control reflects a broader industry transformation, with banks enhancing their installment offerings to meet consumer demand for large purchase financing [2][4] Business Strategies - Several banks have recently introduced measures to optimize installment services, including fee reductions for large purchases such as home renovations and appliances, with some banks offering annualized rates as low as 2.16% [3] - Banks are also simplifying processes by implementing features like "one-click installment" through mobile banking apps, significantly reducing approval times from 1-3 days to just minutes [3] Customer-Centric Approach - The push for installment services aligns with national policies promoting consumption, indicating a strategic shift in credit card business models from volume-driven growth to deepening customer value [4][5] - Banks are encouraged to adopt responsible financial practices, ensuring transparency in fee structures and repayment terms while avoiding aggressive competition that could harm consumer interests [5] Future Outlook - The sustainable development of credit card businesses hinges on creating a customer-centric ecosystem, leveraging intelligent risk control, and embedding services within high-frequency consumption scenarios [5] - The transition from credit cards as mere payment tools to retail ecosystem hubs is emphasized, balancing commercial value with social responsibility [5]

Core Insights - The credit card industry is undergoing significant changes, with banks shifting focus from acquiring new customers to competing for existing ones, leading to a rise in installment payment options and a reduction in credit card branches [1][2][4][6]. Group 1: Market Trends - Many banks are actively promoting installment payment options, with some offering discounted rates around 4% annualized [1][5]. - Over 40 banks have closed credit card branches this year, indicating a trend towards consolidation and efficiency in the credit card sector [1][5]. - The total number of credit cards issued in China has decreased, with a drop of approximately 4 million cards year-on-year, marking a 5.14% decline [6]. Group 2: Financial Performance - Credit card delinquency rates have increased for several banks, with Minsheng Bank reporting a delinquency rate of 3.28%, up 30 basis points from the previous year [3]. - Credit card consumption amounts have also declined, with major banks like China Construction Bank and Industrial and Commercial Bank of China reporting decreases in transaction volumes [8]. Group 3: Strategic Shifts - Banks are focusing on high-value customers and enhancing product offerings to improve customer retention and profitability [7][9]. - The industry is moving towards integrating various financial services, such as savings, investments, and loans, to provide a more comprehensive service to high-end clients [9].

Core Insights - The credit card industry is undergoing significant changes, with banks actively promoting installment payment options while simultaneously closing credit card branches due to competitive pressures and declining credit card usage [2][8][9]. Group 1: Industry Trends - Many banks are encouraging customers to use installment plans for their credit card bills, offering promotional rates around 4% annualized [2]. - Over 40 banks have closed credit card branches this year, indicating a trend towards consolidation and a focus on core operations [8]. - The credit card market is shifting from "customer acquisition" to "existing customer competition," reflecting a more challenging environment for banks [2][3]. Group 2: Financial Performance - Credit card issuance has declined, with a drop of approximately 4 million cards year-over-year, marking a 5.14% decrease [9]. - Several banks reported rising non-performing loan rates in their credit card portfolios, with Minsheng Bank at 3.28% and Shanghai Pudong Development Bank at 2.45% [5]. - Credit card transaction volumes are also decreasing, with major banks like China Construction Bank and Industrial and Commercial Bank of China reporting declines in credit card spending [11]. Group 3: Strategic Adjustments - Banks are focusing on risk management and targeting high-quality credit users for installment offers, rather than those who typically pay in full [5]. - The industry is increasingly leveraging digital technologies such as big data and AI to enhance traditional credit card services [3]. - There is a push towards product innovation and integrating various financial services to improve customer retention and profitability [10][12].