It can only be said that some people in every industry say it is saturated, but there are people working in every industry. If you do well, you will get bigger and bigger. If you do poorly, you will say that the market is saturated and the general environment is not good. The market is not good.
Everyone has one or even two mobile phones, and the streets are full of clothes and shoes. Isn’t it also saturated?
The users of the credit card market are people and adults. As long as they have consumption needs and desires, they can use it. They can either use the card or find someone to borrow money. You must know that borrowing money is not a new thing. There have been credit cards since ancient times. You just don’t ask for help when you need it. This is the market.
As of January 20, 2020, the cumulative number of cards issued by Guangfa alone has exceeded 90 million, while other major state-owned banks have exceeded 100 million, plus the cards of other joint-stock local banks Will the quantity be greater than the population? [Laughs]
The purpose of issuing a large number of cards is to make money. Credit cards are like lending money. As long as you spend money, you can make money through merchants, not counting the usual interest generated by installments and overdue payments. Why not do a business where you can make sure profits without losing money?
Is the credit card market nearly saturated? It doesn’t exist and can never be saturated!
Why is the credit card market not saturated? Because a steady stream of new users flood into the market every year, according to the "2019 National Online Video Conference on Employment and Entrepreneurship of General College Graduates", the number of college graduates in 2019 is expected to reach 8.34 million, an increase of 14% compared to 2018. Ten thousand people, this part of new users alone is enough for all banks to digest.
According to the 2019 annual report of China Construction Bank: As of the end of 2019, China Construction Bank had issued a total of 133 million credit cards, an increase of 12.7593 million compared with 2018. According to the 2019 annual reports of major banks, the number of credit cards issued in 2019 The average volume is around 10 million.
Just like the question raised by the questioner, many people ask similar questions every year. But if it is really saturated, why do banks still vigorously promote it? The purpose of banks issuing cards is to make profits. Just based on the sharp increase in the number of cards issued every year, we can subjectively judge that the credit card market is not saturated, and it cannot be saturated!
With the market support of nearly 10 million new users every year, various banks will inevitably increase their promotion efforts and seize more of the credit card market. Taking CCB credit cards as an example, in 2019 CCB’s fee income alone was 52.62 billion yuan, most of which comes from credit card transaction fees. This alone is enough for banks to fully promote credit cards.
It is not uncommon to talk about industry saturation. Just like the payment industry, some people said that the POS payment industry was saturated 5 years ago, but today, 5 years later, many people are still saying that the POS payment industry is saturated. Including a large number of people who doubt whether it is already saturated. With the prospect of a huge credit card market, the POS payment industry is definitely enduring.
Some people say: Due to the epidemic this year, many banks are improving credit card risk control, and some are still reducing risk control on a large scale. Isn't this a signal for the credit card market? Yes, due to the recent surge in credit card overdue rates due to the epidemic, it is understandable that card issuers will adopt risk control to stop losses, but this is only for users with potential risks. Card issuers are not stingy with high-quality users and still increase credit limits as normal.
As for the expansion of credit cards, card issuing banks have not stopped due to the epidemic. Among so many banks across the country, only Bank of Communications stated in its annual report that “due to the epidemic, the progress of customer acquisition will be slowed down in the near future. "No bank will give up the huge credit card market because the profits are too great.
To sum up: there is no such thing as saturation in the credit card market. Just as Internet celebrity "Zhou" said: It is impossible to work part-time. It is impossible to work part-time in this life. The same is true for the credit card market. reason.
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As the saying goes, the waves behind the Yangtze River push the waves in front and get higher than the last wave. How can credit cards be saturated? As primary school students slowly grow up and become adults, there are still a lot of people applying for credit cards. , only when banks no longer withdraw credit cards will they be saturated and no one will handle them!
My personal suggestion is that no matter why you apply for a credit card, you must maintain good on-time repayment and avoid overdue payments when using the credit card, because personal credit reporting is particularly important at present, not only for home loans and car loans, but also for home loans and car loans. Check your personal credit record for credit cards and other consumer loans. In some medium and large-scale areas and government departments such as civil servants, your personal credit record will be checked when you join the job and get promoted. Therefore, you must maintain good repayment while using your credit card. Record.
If the credit card you hold cannot repay the credit card debt on time due to some things, you can repay the debt within a period of time. You can choose the minimum repayment amount, which will not affect your personal credit record, but There will be interest with a daily interest rate of 0.5. If it is predicted that the debt cannot be repaid in full for a long time, you can apply for installment repayment to reduce the burden. Installment repayment is also a normal repayment and will not affect your personal credit record.
To sum up: As long as banks launch credit cards normally, as generations of people grow up, the number of credit cards launched by banks will never be saturated!