Core Viewpoint - The banking industry is undergoing a significant transformation with the integration and discontinuation of various mobile applications, reflecting a shift from digitalization to intelligent services, aiming for a more comprehensive and user-friendly experience [1][4][8]. Group 1: APP Integration and Discontinuation - The "Run Wallet" APP will officially cease operations on October 15, 2025, with its functions migrating to the China Resources Bank APP, marking a trend of reducing and enhancing banking applications [1]. - Credit card and direct banking applications are the most frequently discontinued types, with several banks, including Beijing Rural Commercial Bank and Bohai Bank, having already shut down their credit card apps [2][3]. - The number of direct banking apps has significantly decreased from a peak of 135 in 2017 to fewer than 10 currently operational, indicating a major retreat in this sector [3]. Group 2: Reasons for APP Discontinuation - Low user engagement, high substitutability of functions, and significant operational costs are common issues among discontinued banking apps [4]. - The closure of independent credit card apps is driven by diminishing new user growth and the need for cost reduction, with most functions being integrated into mobile banking platforms [4]. - The discontinuation of direct banking apps is seen as a completion of their exploratory mission rather than a failure, as they provided insights for digital transformation in the banking sector [5]. Group 3: Regulatory and Market Influences - Regulatory guidance and risk management are key factors in the decision to shut down certain financial apps, as highlighted by the National Financial Supervision Administration's directive to optimize or terminate low-performing applications [6]. - The proliferation of numerous financial apps reflects the banking sector's digital anxiety, with many institutions struggling to meet actual customer needs and effectively implement digital strategies [7]. Group 4: Future Directions for Digital Transformation - Banks are encouraged to break down institutional barriers to digital transformation, fostering a collaborative environment that enhances agility and digital culture [8]. - A tailored approach to digital transformation is recommended, focusing on unique characteristics rather than a one-size-fits-all strategy [8]. - The integration of online and offline channels, particularly through mobile banking, is essential for enhancing customer service and expanding user engagement [8].

Core Viewpoint - The rise and fall of direct banks in China over the past decade reflects the challenges of digital transformation in the traditional banking sector, with many banks now integrating their direct banking services into mobile banking platforms due to changing consumer preferences and technological advancements [1][4][12]. Group 1: Development and Decline of Direct Banks - Direct banking in China began in 2013 with Beijing Bank, leading to a peak of 116 direct banks by 2019, but has since dwindled to around 20 by 2024 [1][3][6]. - Beijing Bank's direct banking customer base grew from 246,000 in 2015 to 476,000 in 2019, with cumulative sales reaching 11.56 billion yuan, but no further data has been disclosed since [1][2]. - Major banks have increasingly shut down or integrated their direct banking services into mobile banking apps, with Beijing Bank planning to migrate its direct banking services to its mobile app by June 2025 [2][3]. Group 2: Challenges Faced by Direct Banks - The decline of direct banks is attributed to the rise of mobile banking, which has improved user experience and functionality, rendering the independent existence of direct banks less valuable [4][10]. - Many customers remain unfamiliar with the concept of direct banks, leading to trust issues that hinder their growth [7][12]. - Direct banks often lack independent operational capabilities and face internal conflicts due to their positioning within traditional banking structures, limiting their ability to innovate and respond to market needs [9][11][12]. Group 3: Survival of Small and Regional Direct Banks - Smaller regional banks continue to operate direct banking services due to their resource constraints, which make the lightweight model of direct banks more suitable for their needs [5][8]. - These banks focus on localized customer bases and offer tailored financial products, allowing them to maintain a competitive edge despite the overall decline in direct banking [5][8]. Group 4: Future Prospects and Lessons Learned - The remaining direct banks may find success by refining their market positioning and collaborating with their parent banks to enhance service offerings [8][13]. - The experience of direct banks has highlighted the need for traditional banks to adapt to digital demands and has paved the way for the emergence of private and internet banks in the future [13].

Core Viewpoint - The announcement by Beijing Bank marks the end of an era for direct banks in China, as it plans to migrate its direct banking services to its "Jingcai Life" mobile banking app by June 25, 2025, leading to the discontinuation of the first direct banking channel in the country [1] Group 1: Industry Trends - The number of operational direct banking apps has decreased to fewer than 20, a significant drop from 135 at its peak in 2017, indicating an over 85% market elimination rate [1] - Direct banks were initially popular due to their convenience and low operational costs, but have faced challenges leading to their decline [2] Group 2: Historical Context - Beijing Bank launched the first direct bank in collaboration with ING Group in September 2013, during a time of rapid growth in internet finance, with direct banks seen as a key tool for digital transformation [2] - By 2015, Beijing Bank's direct banking customer base reached 246,000, with savings deposits increasing by 463.1% compared to the beginning of the year [2] - The last reported customer count for Beijing Bank's direct banking was 476,000 in 2019, with 60.7% being external customers, but this segment has since disappeared from annual reports [2] Group 3: Challenges Faced - The decline of direct banks is attributed to overlapping positioning and structural dependencies, leading to unclear development paths and customer confusion [3] - The distinction between direct banks and mobile banking has blurred, as mobile banking apps have integrated various services, resulting in significant product overlap [3][4] - Direct banks often lack independent management structures, being subordinate to traditional banks, which hampers their ability to innovate and compete effectively [4] Group 4: Future Outlook - The closure and integration of direct banking services are seen as a trend that will continue in the industry [6] - Remaining independent direct banks, such as Baixin Bank and YouHui WanJia, are exploring new development paths that differ from traditional departmental structures [6] - Baixin Bank, established in January 2017, aims to bridge traditional banking and internet enterprises, but has faced challenges, including a 23.74% decline in net profit in 2024 [6] - The evolution of direct banks serves as a lesson for commercial banks to explore a hybrid online-offline business model while maintaining a clear positioning and leveraging their strengths [6]

Core Viewpoint - The direct banking sector in China, once highly anticipated, is witnessing a significant decline, with major banks like Beijing Bank announcing the integration of their direct banking services into traditional mobile banking apps, marking the exit of the first direct bank [2][6]. Development of Direct Banks - The development of direct banks in China began in 2013, with Beijing Bank launching the first direct banking service, which was seen as a new era for the industry [4][5]. - At its peak, the number of direct banks exceeded 100, with city commercial banks and rural commercial banks being the primary participants [5]. Business Performance and Challenges - Beijing Bank's direct banking service saw rapid growth initially, with customer numbers reaching 476,000 by 2019 and total funds sold amounting to 11.56 billion yuan [6]. - However, since 2017, major state-owned and joint-stock banks have been adjusting their direct banking channels, leading to a trend of merging these services into mobile banking apps [6][8]. Market Dynamics - The number of operational direct banking apps has drastically reduced to about a dozen, primarily among smaller city and rural banks [2][8]. - Many direct banks have failed to establish a distinct market position, often serving merely as online extensions of traditional banking services, leading to a lack of competitive advantage [8][10]. Regulatory and Operational Constraints - The tightening of regulatory policies and the issue of product homogeneity have further restricted the growth potential of direct banks [9][10]. - Independent direct banks face significant challenges, including the need for complete operational independence from their parent banks, which complicates their ability to build profitable customer acquisition models [12][13]. Performance of Independent Direct Banks - Independent direct banks like Baixin Bank and Postal Savings Bank's Postal Huinong have not performed well, with Baixin Bank reporting a net profit decline of 23.74% in 2024 [12]. - The termination of the establishment of another independent direct bank,招商拓扑, highlights the difficulties in launching new entities in this space [13].