Study On Credit Card Business Homogenization Of Commercial Banks In China

According to the report “the Overall Operation of Payment System in 2016” released by the People's Bank of China,the total amount of credit cards in use reaches 465 million,with year-on-year growth of 7.6%,and the national per capita possession of credit cards is 0.31.The total credit line of bank credit cards is 9.14 trillion yuan,with year-on-year growth of 29.06%;the repayable credit balance is 4.06 trillion yuan,with year-on-year growth of 23.63% from a year earlier.The average credit line of credit cards is 19,600 yuan,with a utilization rate of 44.45%.At the same time,according to the report of China Banking Association,in 2016,16 A-share listed banks have more than a hundred of new products in the credit card business.The data above shows that,at present,the competition in China's credit card market has reached a perfervid state,which means that credit cards have changed from an unattainable product to a basic payment tool that everybody can have.Since the People's Bank of China will implement a new policy on credit card business,the business space of credit cards will be broader,and also the application will be more flexible.However,regarding to the current situation of credit card market,the commercial banks imitate each other in product development,market positioning,and development strategy,which result in an increasingly serious homogenization.This homogenization is the development tendency of current credit card business,which benefit the credit card business while also have a negative influence on the credit card business.This paper introduces the present development of China's commercial banks credit card business and then analysis the marketing place policy,promotion tactics,interest deduction,point-based reward programs,overdraft of credit card carried by the main commercial banks.It concludes the homogenization problem in China's current credit card market,and then studies its influence and reasons.At the same time through further inquiring Bank of Communications and China Merchants Bank who behave well in dealing with the homogeneous issues,it concludes corresponding measures to response the homogenization problems of China's commercial banks credit card business such as brand differentiation,brand loyalty,increasing customer stickiness through a variety of marketing activities,using the long tail theory to subdivide customers' requirement and gradually increase the market share to achieve the aim of maximizing profits.At last,this paper submits some proposals on how to cope with the negative influence of credit card homogenizations,and submit in the end.This paper insists that commercial banks should stop using scale,category and price competition.Instead,they need to delicately manage the customers with analyses of big data,carry brand differentiation policy,and take advantage of Internet and mobile payment technology to provide unique credit card service,which is critical for the future reform and development of Chinese commercial bank credit cards.