A Study On The Innovation Of Bank Card Business Model

At present,many foreign-funded banks accelerate their steps of issuing bank card in China,and the competition of bank cards in China will be more intense.Meanwhile,customers' requirements about bank cards also increase gradually.Under this background,the development of bank cards in our country faces some unprecedented challenges,and how to carry out innovation based on stably issuing bank cards becomes very important.This thesis attempts to provide a method for the development of bank cards in China.First of all,the thesis uses PEST model to analyze the political law environment,economic environment,social environment and technical environment that our bank cards lie in,and learns that bank cards is situating in a good managing environment.Then efforts are made to analyze the competition strength,consumers' and suppliers' bargaining abilities, similarities of substitutes and the threat of new entrants in bank cards industry with the help of Five Forces model.From the above analysis,it is easy to conclude that the existing competitors and consumers have a bigger effect in bank card industry.At last,this thesis analyzes some disadvantages existed in our bank cards industry.According to aforesaid analysis,this thesis puts forward business model in bank card industry,that is to use IC card instead of existing magnetic stripe card,match one bank card with many different accounts of different banks,and offer excellent service of benefits related parts,i.e.banks, merchants and China UnionPay.Then under the frame of business model,efforts are made to elaborate on the value proposition, the value support,and the value maintenance of the idea of one bank card matched with different accounts in different banks. Finally conclusions are made about the advantages and disadvantages of this innovation and its strategic meaning to bank cards industry in our country,and provide some suggestions during its implementation process.The author hopes that the innovation of business model in bank cards industry can offer more convenient service,bring more benefits for banks,customers and Chinese banks,promote a virtuous development to bank cards industry in our country, and actively deal with the competition of foreign-funded banks.