Core Viewpoint - Several banks in China are tightening their no-card deposit and withdrawal services, with over 50 banks having announced the suspension of various no-card services in the past year, citing reasons such as optimizing financial services, risk management, and cost efficiency [1][2]. Group 1: Bank Actions - China Merchants Bank will stop its ATM QR code deposit service starting April 9, requiring customers to use bank cards for deposits [1]. - Major state-owned banks, including Industrial and Commercial Bank of China, have already suspended no-card cash withdrawal services since April 2022, with other banks like Bank of Communications following suit [3]. - In the second half of last year, several joint-stock banks and leading city commercial banks, such as Minsheng Bank and Industrial Bank, also announced the cessation of no-card withdrawal functionalities [4]. Group 2: Reasons for Changes - The shift away from no-card services is attributed to the low security of identity verification methods used in these transactions, as well as the limited demand from customers for such services [6]. - The rise of mobile payments has led to a decrease in cash usage, prompting banks to close ATM QR code deposit functions to enhance customer fund security and streamline service processes [5]. Group 3: Industry Implications - The adjustments in no-card services are expected to have a minimal impact on banks, as customers can still utilize other methods for deposits and withdrawals [6]. - The changes are seen as a way for banks to improve risk management and reduce operational costs, while also exploring digital technology to enhance service levels and optimize ATM functionalities [6].

Group 1 - China Merchants Bank announced the cessation of ATM QR code deposit services starting April 9, citing the need to provide safe and convenient financial services, without further elaboration on the reasons [1] - The bank's QR code deposit service allowed customers to deposit up to 30,000 yuan per day per card, while the QR code withdrawal limit was set at 20,000 yuan per day per card [1] - The decision aligns with a broader trend in the banking industry, where many banks have tightened their QR code deposit services for security reasons [1][2] Group 2 - The tightening of cardless deposit services has been ongoing for three years, with several state-owned and joint-stock banks having already ceased or adjusted their related services [2] - In 2022, major banks like China Construction Bank and Bank of China also discontinued their ATM QR code deposit functionalities, indicating a shift in banking practices [2] - By 2024, numerous banks, including Industrial and Commercial Bank of China and Agricultural Bank of China, have also suspended cardless withdrawal services, reflecting a significant industry-wide trend [3] Group 3 - Analysts attribute the changes in cardless deposit services to risk control requirements, noting that the security of identity verification in QR code deposits is relatively low [4] - The overall demand for cardless deposit services is considered low, suggesting that the impact of these adjustments on banks' operations will be minimal [4] - The industry is moving towards more secure methods such as facial recognition for transactions, replacing previous authorization code and QR code methods [3][4]