Study On The Lean Formula Management Of Credit Card

In recent years, credit card business has become a strategic business of domestic banks, and already become one of the most profitable business. With the development of economics and improvement of living standard, the mode of consumer behavior has been ever changing as well. Meanwhile, the Credit Card Business is growing at a dramatically fast pace and gains an unprecedented opportunity of creating huge profit. Moreover, it plays a critical role of elevating the intermediate business income. However, the banks in China have already broken the break-even and been facing the bottleneck of development through only the way of stimulating scale of credit card issue but lacking segmentation management. Although banks have begun to control the credit card’s volume and enhance its quality, there are still lots of problems such as improper control of risk, the unbalanced distribution, illegal operations, low utilization rate of POS, disorderly competition, which need market segmentation.Firstly, this article includes the literature review of both domestic and overseas research. To the research field, the existing research mainly for the issuing bank that how to enhance the amount of credit card issuers which lead to get more revenue, while the card design, customer requirement, credit card quality and profit, the merchant acquirer, cardholders and as the acquirer how to enhance the segmentation research of business credit card number have insufficient research. To the research object, we have more article about how the cardholder meticulous market but little articles of POS profit acquirement and card differentiation. For the research perspectives, there are many researches on evaluation of the value of the cardholder, less researches on the cardholder’s credit risk yet.Secondly, on the basis of literature review, in the thesis, the data of G bank is analyzed with the focus on card segmentation, merchants development and cross promotion. For the methodology part, the factor analysis is adopted in order to figure out the elements affecting the card usage effectiveness. These factors include the physical banks number, card function, annual fee, services, overdue limit and bonus revenue. Through the commercial bank credit card related data, such as issue volume of cards, customer quantity, the number of transactions and the amount of transaction, certain types of credit card are selected which highly accepted to verify the factors of affecting customer usage, then test whether there is positive correlation between the consumption amount and intermediate business income. The purpose is to explain the impact of credit card types on the credit card holders and users preferences. Credit card should not be only for the issue volume, but to meet customer needs, bring convenience and benefits. Only if customers can really use, the amount of credit cards can be increased. Furthermore, the recommendation of card design and segmentation management can be proposed.Thirdly, from the aspects of merchants, the cross promotion theory is applied to elaborate how to maintain and promote the relation among card holders, merchants and banks then motivate the POS trade acquirement.The last but not the least, to conclude, based on the above analysis, the suggestions of Credit card segmentation and methods of improving commercial bank competitiveness are proposed.