Competitive Strategy Of Credit Card Installment Business On China Construction Bank BY Branch

On April 20,2022,the State Council issued the Opinions of the General Office of the State Council on Further Releasing Consumption Potential and Promoting Sustained Recovery of Consumption,further proposing that units at all levels should accelerate the construction of a new development pattern,and do everything possible to release consumption potential and promote sustained recovery of consumption.The opinions also propose that commercial banks and auto finance companies should improve their financial service capabilities and enrich bulk consumer financial products.As one of the important secondary branches of China Construction Bank in Guangzhou City,Guangdong Province,the overall business scale of China Construction Bank BY Sub-branch is no less than that of branches in second-and third-tier cities.The credit card instalment business of BY sub-branch has become a benchmark bank in Guangzhou since 2017.However,in the past two years,affected by factors such as intensified competition in the same industry,slow development of the property market,and the transformation of the automotive energy structure,the proportion of the credit card installment business market of BY sub-branch has declined significantly,for example,the proportion of the automotive installment business system has fallen from 25% in 2019 to 17% in 2022.The credit card installment business of CCB BY sub-branch has encountered great competitive pressure and development bottlenecks.Based on my many years of practical experience in credit card installment work,the author will take BY sub-branch as the research object,and analyze from the aspects of industry environment,internal policies,and current competitive strategies of BY sub-branch,and conclude that there are problems in the development of BY sub-branch’s credit card installment business,such as declining proportion in the system,uneven product development,single customer acquisition method and rising cost,insufficient product innovation,and low participation in branches.The author analyzes the development environment of BY branch through PEST analysis and Porter’s five forces model,and uses the SWOT analysis matrix to conclude that BY branch has certain competitive advantages in terms of organizational structure,business foundation,network strength,etc.,and as a state-owned printing well,BY branch can make full use of national policy support,interest rate decline and other opportunities to vigorously develop credit card installment business.At the same time,as a secondary branch,BY sub-branch has disadvantages such as low authority,poor marketing atmosphere of outlets,and difficulty in optimizing product structure.After a series of industry environment and competitive advantages and disadvantages analysis,the author puts forward competitive strategies and safeguard measures that are conducive to promoting the development of BY sub-branch credit card installment business.Including product strategy,pricing strategy,channel strategy,publicity strategy,etc.,and suggested that BY sub-branch should fully stimulate network resources,strictly control compliance risks,etc.,to ensure that the competitive strategy can be effectively implemented.