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].