The Research On Strategy Of Credit Card Business Development Of Commercial Bank In China

Credit card emerged in U.S.A in the last century. As a new way of bank pay, credit card has been playing a great role in lowering trade costs, improving social Payment efficiency and trade security. As its effect is growing in the social and economic life, the rate of using credit card payment and the ratio of loan are also rise year by year. Credit card businesses improve the profit of financial institution, which makes its profit ratio improved in the total profit. Credit card is becoming a new way of improving business bank profit, at the same time, it play important role in finance industry, and it is still evolving and renovating. Having been developed for dozens of years in the developed countries and regions, credit card business has formed relatively mature operation patterns, and offered a lot of experience that is quite worthwhile for us to learn nowadays. The development of the credit card business in our country is slower than that of the developed countries and regions. In our country the environment to using cards needs to be improved, and actually supervisal systems of the finance, managements of the banks, the finance, managements of the banks, the forms of financial organs are unable to follow the development of using credit card completely. This article begins to introduce the credit card basic knowledge, then using many measures, such as data analyses, system analyses, comparative analysis etc. And meanwhile through comparing the card's developed processes, characters, developed regulations in china to scientifically analyze Chinese credit card developed stages, characters, as well as its problems, through finding the development of credit card business tactics for our national commercial banks. This article can be divided into four parts:Firstly, to introduce the origin of the credit card, the basic concept, function and the development of the credit card business in the modern economy, as well as economic theories about it.This paper studies in the pre-credit card refers specifically delegated certain overdraft amount of the cardholder, the cardholder can without prior deposits in consumer credit, or cash advances, overdraft consumption within a certain period of time to enjoy interest-free repayment treatment, cardholders within a prescribed period can be Ml or partial repayment, thus achieving a revolving credit function of the Small Credit financial instruments, namely, the commercial banks to issue credit. Credit cards as modern financial instruments, it has a settlement, exchange transfers, the purchase of the scale, personal credit, credit sales, recycling credit functions. At the same time as a credit card payment and credit functions, the development of the credit card business credit card issuing institutions and macroeconomic have had far-reaching implications.The credit card business development related to many economic theories. The most important theories of them are the development of monetary theory, consumption theory and asymmetric information theory. The development of monetary theory explained as a new type of credit card payment in the inevitability. Consumption theory explained the emergence of credit cards arising the changes in consumption patterns. Asymmetric information theory explained the source of risks that commercial banks develop credit card business. Secondly, to introduce international main credit card organizations, and to investigate and analyze the credit card business development and transform in American, Europe, Japan, Korea, Chinese Taiwan, and its enlightenment for Chinese commercial banks' credit card business.Major international credit card organizations, including Visa International, MasterCard International, American Express International, Diners Club and JCB.In this part of the article, through the research of United States, Europe, Japan, South Korea and Taiwan credit card business. Chinese commercial banks reached on the development of the credit card business lessons: First, the commercial banks choose the credit card business development tactic should base on national conditions. Secondly, commercial banks should focus on brands building, and improving the level of services. Thirdly, commercial banks should breakdown of markets to offer differentiated services. Fourthly, commercial banks should emphasis using card environment, and establish the social credit system to reduce operational risks, as well as to improve economic efficiency.Thirdly, through introducing Chinese commercial banks' credit card's business developed processes, character, to scientifically analyze the problems existing in Chinese credit card developed.Having been developed for dozens of years, Chinese commercial banks credit card business has entered a new stage, at this stage, the credit card business show the following characteristics: First, many local commercial banks and cooperate with foreign banks or Hong Kong banks; Second, the size of the market rapidly expanded; third, market competition has become fiercer, there are more and more product categories, card-issuing banks focus on product innovation and marketing strategy.Although Chinese commercial banks credit card develop faster and faster, but there are still many constraints on the credit card business. This paper analyses the constraints from the social, cultural, market environment, admissibility environment, and the management system of commercial banks.Finally, through investigating developed countries' credit card's history, compiling the practice experience, analyzing the developing situation, to advance that commercial banks to reform the management system, the organizational structure; to establish the perfect market marketing and the services structure; and to draft the letter system and the risk control system. Obtains from the above three aspects, solution present stage existence problems, promotion from now on credit card service development.Management system and organizational structure of the commercial banks is the basis for the development of the credit card business and security. The credit card business is different from the traditional banking business, commercial banks must operate this business independently, the specific approach: Firstly, commercial banks must separate the credit card business from the traditional business and establish the real significance of the credit card centre. Secondly, commercial banks muse use the vertical management mode of operation; thirdly, commercial banks must separate the receivable business from the organizational structure from the credit card centre.Advanced marketing concepts and services management for the commercial banks successfully carrying out is the necessary conditions for the credit card business. Faced with the new situation of Chinese credit card business, the commercial banks must change marketing concept, we must shift the apportioned administrative tasks to customers demand for the services of marketing.Changing the attitude to risk, establishing and improving the personal credit information system are necessary conditions for the commercial banks to participate in market competition, and to develop the credit card industry. At this stage, the key to card-issuing institutions for risk control is coordination between the core objectives and risk control. Now, credit risk is the major risk to commercial banks. For many years, the commercial banks are eager to find financial institutions to prevent inter-customer credit risks. The personal credit system established by the People's Bank of China played an important role on credit approval, Post-lending Management and other aspects, but the credit work is not to built several credit system, but rather a complex and arduous project. The credit system and the using of commercial banks credit management must practice together, only in this way the personal credit information system can really play a role.