Business model of banks: Banks typically earn spreads from debt-side customers (that is, depositors) and asset-side customers (loans to enterprises). So can you turn the asset side into a C-side customer? There are two important products:
The first is mortgage: the amount is large, the user's credit is high, and the asset security is high (the house price has been rising because of the high down payment ratio).
Second, credit card (debit card): Later, I figured out that credit card (debit card) is a small loan product with high interest rate, especially those joint-stock banks and small and medium-sized banks, whose outlets and financial strength cannot compete with those of the four major state-owned banks, so I vigorously developed credit card (debit card) products, such as Guangfa Bank, China Merchants Bank, China CITIC Bank, Ping An Bank, Industrial Bank and Shanghai Pudong Development Bank, and many people will have credit cards from these banks.
How to make money by credit card (debit card)?
Annual fee: the annual fee for ordinary credit cards (credit cards) (gold cards and ordinary cards) is 800 or 600 per year. Free of annual fee in the first year, and free of annual fee in the following year if you spend six times a year. The annual fee for a platinum card is usually several thousand, and it cannot be exempted. Some banks need huge points to avoid, that is, let you use credit cards (debit cards) more, and the annual fee is generally not much money for banks.
Handling fee: every time a user swipes a credit card (debit card) at a merchant, the bank will charge a handling fee of 1%, and the transaction handling fee will be shared among UnionPay, the bank to which the credit card (debit card) belongs and the bank to which the credit card (debit card) swiping machine belongs. Therefore, banks want users to swipe more credit cards and use more cards, so that ordinary people will not spend so frequently, and the transaction amount will be less, and banks will naturally charge less fees. Therefore, for the person who raises a card to cash out, he naturally likes that the bank can earn such a large amount of day trading's handling fee. The bank is worried that you can't afford it. If you always repay in time, the bank will be at ease. If you cash your card, the bank will definitely make money. Some people.
Installment interest and withdrawal fee: this is a very large source of income. After you spend a sum of money, you will often get a phone call from bank customer service. I suggest you pay by installment, saying that there is no interest and only a handling fee. In other words, the bank will give you a misunderstanding about interest, thinking that interest is very low. Divided into 12 installments, with equal repayment of principal and interest every month, about 0.8%, and only 9.6% interest a year. Interest should be compound interest. What he told you was simple interest, but what he actually received was compound interest. What's the difference? It's a little complicated to say. I'll talk about it in detail when I have a chance. Now, if the monthly interest rate is 0.8%, the annualized interest rate is about 17%. Is the contrast big? However, it is still less than four times (less than 24%) as stipulated by the central bank, and the online financial loans are higher. What else is there? The real interest rate is very high, which is usury.
Whether individuals or institutions, try to find low-cost funds to use. Banks like users who can repay on time, charge normally and even pay in installments frequently. No matter whether you cash out or raise a card, you can make money without risk!