A Study On The Business Model Of Chinese Bankcard Industry And The Management Mechanism Innovation

This paper is based on the writer's years of work experience at the only bank card organization in China - China UnionPay and analyzing a large number of bank card business data as well as substantial research on the industry. In 2011 the United States request the World Trade Organization (WTO) rule on opening up China's banking card market. The writer uses this event as a starting point, propose that in order to develop our bank card service industry into an internationally competitive player and make the UnionPay brand a world-wide well-known band as mentioned by President Hu Jintao during his visit China UnionPay, China UnionPay, as the only bank card service institute in China should play a leading road on the development of China's banking card service business from a higher level, clarify the relationship between all interested parties, while playing organizing, guiding and coordinating role in the bank card service industry.After describing the status quo of China's banking card service industry, the article points out the major issues and factors restricting industrial development, i.e. the problems on products, services, models, management and problem-solving ability, by using bilateral bank card market theory and industrial innovation theory and by studying lessons learned from the development of bank card service industry worldwide.In the analysis of the major problems facing by China's banking card service industry, this paper tries to provide solutions as well as a practical work path to the problems, i.e. to enhance industrial chain value and engage in industrial innovation in terms of product development, sales models, profit models, services, policy support and risk management, by analyzing the cause of these problems and by combing industrial innovation theory and the law of the bank card service market.The in-depth study of business models and management mechanism of China banking industry will provide a meaningful guidance in the transformation of the domestic bank card service industry in the future...