Core Insights - The banking industry is witnessing a decline in previously popular digital banking services, such as direct banks and credit card apps, which were once seen as innovative solutions in the "internet ecosystem" era [1][3][4] - The shift from internet-based services to AI-driven solutions is becoming evident, with banks now focusing on integrating AI technologies into their operations [8][11] Group 1: Decline of Digital Banking Services - Many banks are shutting down or merging their direct banking services and credit card apps, indicating a significant shift in strategy [3][4] - The direct banking model, initially aimed at creating a fully online banking experience, has struggled to differentiate itself and has often been seen as ineffective [4][5] - The performance of direct banks has been poor, with examples like "邮惠万家" losing over 800 million in three years, highlighting the challenges faced by these services [4] Group 2: Transition to AI - The banking sector is now transitioning from an internet focus to embracing AI technologies, with hopes of improving customer service and operational efficiency [8][11] - Despite the enthusiasm for AI, many banks still struggle with basic app functionality, indicating a gap in meeting user needs [9][11] - The application of AI in banking is still in its early stages, and while it has potential benefits, there are concerns about user experience and the effectiveness of AI-driven customer service [11][12] Group 3: User-Centric Innovation - The success of banking innovations hinges on understanding and addressing user needs rather than merely adopting industry trends [7][11] - The decline in user engagement with banking apps suggests that banks must prioritize improving user experience to remain relevant [6][7]

Core Insights - The article discusses the trend of banks merging multiple apps to streamline operations amid rising competition and high customer acquisition costs, with Bank of China (BOC) announcing the shutdown of its "Bountiful Life" app and migrating its functions to the main "Bank of China" app, marking the end of a 12-year service [1][4] - The credit card apps have historically served dual purposes: connecting online and offline channels for customer acquisition and creating digital profiles for targeted financial services, but the profitability of standalone credit card apps is declining [2][10] Industry Trends - Several banks, including Shanghai Rural Commercial Bank and Beijing Rural Commercial Bank, have closed their credit card apps, shifting functionalities to their main banking apps due to the shrinking credit card business and the need for cost efficiency [4][16] - The credit card business is facing significant challenges, including a drop in loan volumes and increased competition from other financial services, leading to a focus on customer retention rather than acquisition [10][13] User Engagement - User engagement with banking apps is declining, with average daily usage time dropping from 4.93 minutes to 2.70 minutes, indicating a saturation in mobile banking app traffic and a need for improved user experience [9][6] - The competition for user attention is intensifying, with lifestyle apps from companies like Meituan and Douyin entering the market, making it harder for credit card apps to attract new users [15][19] Financial Performance - Data shows that major banks are experiencing a decline in credit card loan volumes, with Bank of China reporting a 13.89% decrease year-over-year, highlighting the overall downturn in the credit card sector [5][16] - The credit card market is transitioning from a growth phase to a more mature stage, with banks needing to adapt their strategies to meet the evolving demands of younger consumers who prefer integrated financial services [17][19] Strategic Recommendations - Banks are encouraged to enhance the synergy between online and offline channels and focus on creating differentiated digital paths that align with their unique characteristics, rather than pursuing a one-size-fits-all approach [23][24] - Implementing advanced data analytics and AI-driven models could help banks better understand customer needs and improve service delivery, ultimately enhancing user experience and operational efficiency [21][22]

Core Viewpoint - The migration of the "Bountiful Life" App to the "Bank of China" App reflects a strategic adjustment by banks in response to the declining profitability and operational costs associated with credit card apps, indicating a broader trend in the banking industry as credit card business contributions diminish [1][4]. Group 1: Credit Card App Migration - The "Bountiful Life" App will gradually migrate all functions to the "Bank of China" App, after which it will cease downloads and services [1]. - This migration is part of a trend where banks are optimizing their credit card app operations due to rising costs and declining profitability [1][4]. Group 2: Industry Trends and Challenges - The credit card industry is experiencing a downturn, with transaction volumes and active usage declining due to economic factors and changing consumer behavior [2][3]. - As of Q2 2024, the total number of credit cards and loans has decreased by 6 million from the previous quarter, marking an 11.4% decline from the peak in mid-2022 [3]. - The average credit card usage rate has also dropped, with a current utilization rate of 38.03% [3]. Group 3: Operational Efficiency and Cost Management - Maintaining independent credit card apps has become less cost-effective for banks, leading to a reduction in the number of such apps [4][5]. - The operational burden of multiple apps, including development and maintenance costs, is prompting banks to consolidate their services [4]. - A total of 52 credit card centers have been approved for closure this year, with significant reductions noted at major banks like the Bank of Communications [6]. Group 4: Future Directions - The credit card business is expected to integrate more deeply with other retail banking services, moving towards a digital marketing approach rather than traditional methods [6]. - Banks are shifting focus from merely increasing card issuance to enhancing customer value through precise marketing and sustainable service offerings [6].

Core Viewpoint - The recent shutdown of credit card apps, particularly by major state-owned banks like Bank of China, reflects a broader trend in the banking industry towards consolidating digital services and reducing operational costs amid a shrinking credit card business [1][5][16]. Group 1: Credit Card App Shutdowns - Bank of China announced the gradual shutdown of its "Bountiful Life" app, migrating its functions to the main "Bank of China" app, which has drawn market attention [1][4]. - Several banks, including Shanghai Rural Commercial Bank and Beijing Rural Commercial Bank, have previously shut down their credit card apps, indicating a trend towards integrating these services into existing banking apps [5][6]. Group 2: Market Dynamics and User Engagement - The credit card app market is experiencing significant differentiation, with major state-owned banks and some joint-stock banks dominating user engagement metrics [7][8]. - As of June 2025, the top credit card apps by monthly active users include those from major banks, with Bank of China's "Bountiful Life" app ranking 13th with 1.5454 million active users, significantly lower than leading apps [7][8]. Group 3: Credit Card Loan Performance - State-owned banks maintain a strong position in credit card loan volumes, with China Construction Bank reporting a credit card loan scale of 1.0549 trillion yuan, the only bank exceeding 1 trillion yuan [9][10]. - Joint-stock banks also show robust performance, with China Merchants Bank's credit card loan balance reaching 924.49 billion yuan, accounting for 12.99% of its total loans [9][10]. Group 4: Digital Transformation and App Management - The closure of independent credit card apps is part of a broader strategy for centralized management of banking applications, as mandated by regulatory authorities to optimize user experience and reduce redundancy [16][17]. - Banks are increasingly focusing on comprehensive apps that integrate various financial services, moving away from multiple standalone apps to enhance operational efficiency and customer engagement [17].

Core Viewpoint - The recent decision by China Bank to shut down its "Bountiful Life" app and migrate its functions to the main "China Bank" app reflects a broader trend among banks to consolidate credit card applications due to increasing operational costs and profitability pressures in the credit card business [1][5][6]. Summary by Sections App Shutdown and Migration - China Bank announced the migration of all functions from the "Bountiful Life" app to the "China Bank" app, with the shutdown of the former expected to follow [1][3]. - The "Bountiful Life" app, which primarily served credit card functions, will cease to be available for download and registration after the migration is complete [1][3]. Industry Trends - The trend of consolidating credit card apps is not limited to China Bank; several other banks, including regional and joint-stock banks, have previously shut down their independent credit card apps, moving functionalities to their main banking apps [5][6]. - The Financial Regulatory Authority of China has emphasized the need for financial institutions to optimize or terminate low-activity and redundant mobile applications [3]. User Engagement and App Performance - The "Bountiful Life" app had a monthly active user count of 1.5454 million, ranking 13th among credit card apps, significantly lower than the top five apps, which each had over 10 million active users [3][4]. - The top five credit card apps by active users are: 1. "Palm Life" with 48.9945 million 2. "Pu Da Xi Ben" with 26.9210 million 3. "Buy Now" with 18.5290 million 4. "Sunshine Benefits" with 14.9554 million 5. "Dynamic Card Space" with 14.7435 million [4]. Cost Efficiency and Strategic Shift - The current wave of app consolidation is driven by the need for cost reduction and efficiency improvements, contrasting with earlier strategies that focused on leveraging high user engagement from independent credit card apps to boost overall retail banking growth [6]. - The profitability pressures in the credit card sector, exacerbated by low interest rates and risk exposure, have made maintaining separate apps economically unfeasible for many banks [6].