The Expansion Strategy Research Of Bank Card Business

Bank card consumption as a collection, settlement, credit, financial and other functions in one comprehensive modern electronic payment instruments, traditional and modern information technology, financial services product of the combination is an important achievement of modern financial innovation. Since1985, China’s Bank of China issued the first real sense of the bank card since the new financial instruments in China after20years of rapid development, has formed a huge scale. Especially in recent years, rapid development of China’s banking card business:bank card annual card volume increased significantly, growing market acceptance, the deepening penetration of bank card, bank card transaction volume is growing, bank cards continue to extend the industrial chain, size has been greatly expanded. Recently, the People’s Bank issued "the second quarter of2011the general situation of the payment system"(hereinafter referred to as "overall situation" shows that the second quarter of2011, the amount of bank card issuers continued steady growth, the bank card acceptance environment continues to improve, the amount of bank card business maintained an upward trend, the public and increasing awareness of the use of bank card, bank card penetration rate reached40.2%, the bank card in the promotion of social consumer goods retail market will continue to play an active role in the development, according to "general circumstances", as at the end of the third quarter, China issued a total of2.806billion bank cards, an increase of17.9%growth rate over the year earlier, accelerating3.3percentage points, of which the cumulative debit card issuing volume of2.68billion, representing growth of4.6%in the second quarter, an increase of17.6%growth rate over the year earlier, accelerating4.2percentage points; total credit card volume of268million, compared with second quarter growth of3.9%, an increase of 20.3%.According to international experience, a State bank card consumption in total retail sales in the proportion of each can be increased by10percentage points to GDP growth of0.5-0.8percentage points."Second five" regional development plan will accelerate the coordination of regional economic growth, enhance income, a strong national policy to promote, the bank card business for a very long period of time will continue to show great potential.However, the bank card business while facing great opportunities for development, due to the relatively developed countries, China’s financial industry is not mature, the bank card business is still growing, China’s bank card organization also relatively not very perfect, the regulatory system or is not very sound. China’s bank card business is facing tremendous pressure from international competition, domestic banks in the bank card business, competition is fierce, showing a variety of forms of cooperation and competition. Since2004, Citibank and Shanghai Pudong Development Bank to jointly develop dual-currency credit card since2006, full liberalization of the financial sector, Standard Chartered Bank, Bank of East Asia and other foreign banks have already submitted your application and build an active bank card at home center, ready to enter the business penetration ability, the bank card business with high profit margins, which will fundamentally change the Chinese bank card business in market structure and competition. In this context, the majority of domestic banks with MasterCard, Visa and other credit organizations to develop cooperative dual-currency credit card; while domestic banks, in order to win large corporate customers, basically launched a joint card, city cards and other forms of bank cards. Therefore, the role of bank credit card is basically homogeneous, making the structure of the domestic bank card market is more complex, but also to some extent, affected the bank card business expansion.This paper will use the industrial organization theory, marketing theory and other theories of the analytical framework of Qingdao City, the bank card business for the local market analysis, from the bank card market concentration to start, detailed analysis of the bank card market structure, and compared with the national market analysis, discussion of market structure in such a market expansion strategy.Through this study found that China’s bank card for the oligopolistic market structure, basically in a few large state-owned banks and joint-stock bank monopoly. Qingdao bank card market conditions also showed a similar lack of market structure and, thus expanding the bank card market in the future the process is also facing the same difficulties and challenges. Finally, the paper proposed several measures to expand the bank card market, hoping China’s bank card market to develop more robust and perfect for our economy to make some contribution.