Research On Profitability Of MS Credit Card

The function and ability of banks are exaggerated in China. In fact, for every public financial institution, profit is the rudimental reason why does it exist. As one of the important business of bank, the credit card business is driven by profit as well.In China the credit card industry, MS credit card has comparatively strong profit earning ability, as well as highly issuing, credit card payment also have a high activation, the proportion of transactions, to lead the industry. MS credit card number has been maintained rapid growth, in January 2015, the entire amount has been issuing over 20million, maintaining a sustained profitability for seven years, for a total transaction value close to 1 trillion yuan. MS Credit Card "derivative" products as a relatively new card types are highly profitable, MS directly enhance the overall profitability of the credit card. By the end of 2014, S City Credit Card "derivative" product revenues total more than 200 million 49 million. But at the same time the fierce competitiveness, the consumption habit and the difference with foreign market lead to the decreasing of fees. The willingness of using recycling credit is low, which lead to the revenue is hard to increase. The business returning and fee is low, non-interest weighs low. All these problems are waiting to improve. The high cost of MS Bank credit card comes from high development cost, low using ratio and high management cost as well.1. Expand this article targeted research through questionnaires, hoping to provide a direct reference to the credit card business to enhance the profitability of MS. At the same time, also provide a favorable reference for other commercial banks to enhance the profitability of credit card business. Analysis results and marketing operations costs, annual fees, interest income, fraud losses, fee income, bad debt losses for MS affects more critical factor in terms of their profitability. And all respondents agreed that MS Credit Card "derivative" products will be profitable to produce MS credit card key influence. In view of this paper presents the development of the "Circle", segment customer groups; stimulate cardholder overdraft consumption, interest income increased circulation; break the traditional line card consumption, promoting the proceeds of "derivative"; in addition, other functions in the credit card respect, it should establish a number of innovative credit card installment plan, allowing MS to the cardholder’s bank consumer credit services more abundant financial businesses to provide value-added services to more in-depth cooperation. At the same time, to some extent, also to enhance MS bank credit card business profitability. Meanwhile, MS bank credit line should strengthen the dynamic management of credit card accounts and other suggestions help increase the revenue side. Proposed to activate the sleep card; countermeasures and control marketing costs .Put forward countermeasures and suggestions about improving the risk management about credit card debt.