The Comparative Study Of Credit Card Issuing Influence Factors Between Industrial And Commercial Bank Of China(ICBC) And China Merchants Bank(CMBC)

Since 1979, when the credit cards were brought in China, the credit cards business has been booming in China. By the end of 2013, the accumulative issuing of the credit cards has been up to 390 million in China. The competition in issuing the credit cards between the banks is fierce. The accumulative issuing of the cards from the five State-Owned Joint-Stock Commercial Banks adds up to 190 million, while the cards number from the 12 Joint-Stock Commercial Banks in China is 120 million. I choose the ICBC and the CMBC as two comparisons, because the ICBC is called a "universal bank", but the cards service of the CMBC bank gets a wide acclaim. The comparison between the two banks helps analyze if there are obvious differences in the credit cards business among various banks. At the same time, the analysis helps the banks obtain experience from each other.I collect the relevant data and information of the two banks. Then, I apply Logistic Model, Michael Porter’s Five Forces Model, Nicosia Consumer Decision Model, the comparative analysis and other research methods to this paper. I did a comparative study in the influence factors of the credit cards issuing between the two banks(ICBC and CMBC). I compared from the seven factors:the products, the product innovation, the risk management, the service characteristics, the marketing environment, the business income and the cost of cards. My primary work and innovations are as follows:(1)I apply the comparative analysis method to analyzing the products, the product innovation, the service characteristics and the business income. Then, I conclude the influence on the cards circulation from the different issue policies and search the differences in it.(2) Based on the theory of risk management of commercial banks, as well as the use of Logistic Model, I select the eight factors that are generally considered by the credit card issuers as a variable. I analyze the user data from the two banks in a third-tier city. I compare the similarities and differences between the two banks in the risk management, which indicates the influence on the cards circulation.(3) According to Porter’s Five Forces Model, I analyze the issue policies of the two banks and compare the influence on the cards circulation from the issue policies. The analysis is from the five factors: the trade barriers, the threat of substitutes, the bargaining power of the buyers, the sellers’ bargaining power and the industry competitors’ competition.(4) According to Nicosia Consumer Decision Model, starting from the whole process of consumer decision-making, I analyze the cards costs of the two banks and compare the influence on the cards circulation from the alternative costs.