The Research To The Influential Factors Of Profitability Of Credit Card Of Bank Of Our Country During The Period Of Transition

Since China issued first Credit Card in 2003, the impact of credit card was increasing in the social and economic life. Major commercial banks regard credit card as the most potential personal financial business, and inject resource to develop. China’s credit card industry has experienced from "scale win" period to "quality win" period within 8 years, while western developed countries spent 20-30 years.The goal of commercial banks is to unify safety, mobility and profitability. A stable and profitable mechanism helps prevent from financial crisis and signify the modernization. However, only 10% of China credit card issuers have won profit and their profitability is far below international standard. This paper aims to shed light on two questions:firstly, what influenced China credit card market’s profitability, Secondly, what’s the possible channel to improve its profitability.This paper studies systematically on profit influencing factors from internal, industrial and external point of view, and compares with western country’s profit model. This paper uncovers that the engines driving credit card market are outstanding per card, strong brand and balanced income structure under the circumstance of stubborn consumer culture. However, the factor of scale doesn’t relate much with profitability after critical point.