Analysis On Challenges And Countermeasures Of A Bank Credit Card Business

China’s credit card industry started in the1980s, which is much later than international credit card business, but it has grown rapidly in recent years. Due to the high profits, more and more banks have joined the ranks of the issuing banks. Large state-owned commercial banks and national joint-stock commercial banks are the core of the issuing banks, then a growing number of regional commercial banks have been issuing credit cards. Issuing banks now become more and more diverse, however, it is necessary to think of whether the industry is healthy and orderly.Market share and profitability of A Bank credit card are well-known. In this paper, the author goes through the history and the current situation of A Bank credit card. By analyzing the profit model and support teams of A Bank, this paper finds out its operation situation and corresponding problems. Meanwhile, A Bank credit card faces the challenges from the financial industry and the Internet industry. Challenges from the financial industry consist of three aspects:(1) The cancel of annual fee of credit card and the inefficient investigation of qualification make the competition disorderly.(2) The store’s brokerage are reduced, making the banks focus more on the rest of the profit filed.(3) Foreign banks enter the Chinese credit card market. With regard to these three issues, the author has provided solutions as follows:(1) To improve the single card’s transaction;(2) To combine the functions of credit card, making a cross-selling. What is more, with the rapid development of science and technology, the Internet Financial become increasing popular. Currently, part of the Internet companies are allowed to enter the financial industry by the People’s Bank of China. Some of the Internet companies are challenging the credit card by promoting some new products in2013. This paper argues that the attitude towards the Internet Financial is competition and cooperation. A Bank can compete with the Internet Financial by developing its mobile payment technology, and can also cooperate with the Internet Financial by its own IT character.Most researches on the credit cards.however, focus on how to increase market share and profit, and ignores the impact from outside industry. In this paper, it is noticed the new trend of China’s financial market. The study area includes both the financial industry and non-financial industry. It is hoped that there would be more research on this field.