Core Viewpoint - The recent increase in service fees by over 10 banks in the first half of 2025 is a response to the narrowing net interest margin and aims to enhance revenue sources and profitability [1][2] Group 1: Reasons for Fee Increases - The continuous narrowing of net interest margins has compelled banks to seek new revenue sources to improve profitability and risk resilience, with the net interest margin reported at 1.43% at the end of Q1, down 11 basis points year-on-year [1] - Banks are adjusting service fees to improve cost coverage and enhance equipment utilization efficiency [1] - The expansion of free services during the COVID-19 pandemic has increased pressure on net interest margins, prompting banks to optimize their service fee structures to ensure sustainable development [1] Group 2: Regulatory and Consumer Considerations - The adjustments in service fees align with the 2014 regulations allowing banks to set market-adjusted prices autonomously, while also respecting consumers' rights to information and choice [2] - Banks must communicate effectively with customers regarding the basis for fees and the value of services to avoid customer dissatisfaction and potential loss [2] - A careful balance must be struck between profit growth and customer satisfaction to mitigate negative social impacts from fee adjustments [2] Group 3: Long-term Strategies for Sustainability - Relying solely on new fees for income is not a sustainable long-term strategy; banks must focus on economic transformation and enhancing core competitiveness [3] - Smaller banks should leverage their unique characteristics and market positioning to offer customized financial products and services, creating competitive advantages [3] - There is a need for banks to accelerate digital transformation and improve operational efficiency to reduce costs and enhance customer experience [3]