today, I will take this credit card "Five Little Dragons" as an example. The annual report data is used to rank them for one year's development and choose the best among them, and the leading banks in these card businesses are also used as the vane to see the general trend of financial technology infiltrating retail.
in 218, which one is more "hard"?
The first set of indicators we selected dynamically for 218 are: the growth of circulation cards and the growth of loan scale.
as we all know, in 217, the credit card issuance of banks was increasing. In that year, the overall situation of the banking industry was that almost every family was undergoing retail transformation and light transformation, while the retail business itself was restructuring, the growth rate of personal mortgage was controlled, and the asset structure needed to be adjusted to consumer credit products with higher efficiency. All of the above make the credit card business the best starting point.
However, under the background of the chaos and rectification of online loans and cash loans from the end of 217 to the beginning of 218, and the macro-level leverage ratio of residential departments has increased rapidly in the past few years, personal credit risk began to spread to financial institutions. As the vanguard of retail, the credit card business is likely to be "a prophet of water cooling in the spring river", and the growth rate of some bad bank credit cards is likely to slow down.
Therefore, one of the highlights in 218 is whether these banks will continue to move at full speed or slow down. (Of course, this is only a strategic observation and a value judgment of inaction. It is also desirable to realize the active adjustment of risk lag. )
We use the selected first set of indicators to simultaneously detect the "growth sustainability" and "site expansion" of the credit card business of all banks.
from the perspective of "site expansion" in which card issuance continues to occupy the market, China Merchants Bank, Ping An and CITIC rank among the top three in terms of growth.
judging from the total circulation of cards, China Merchants Bank still ranks first in the echelon of stock banks; Ping An Credit Card has grown rapidly in recent years. In 218, it broke through 4 million and 5 million marks in succession. (CITIC and China Everbright Bank did not announce the number of cards in circulation in their financial reports, so they can only see the cumulative card issuance indicators, which are 67.6 million and 6.53 million respectively.
another "site expansion" of credit cards lies in the growth of loan scale, which is the focus of the development of all banks.
In terms of this indicator, from the perspective of momentum, Ping An Credit Card took the lead last year, with a loan growth rate of 55.9% driving the loan balance to soar to the second place in the echelon of stock banks; In terms of balance index, China Merchants Bank is slightly higher, and Ping An and CITIC won the runner-up and third place.
make two more additions to the "site expansion" and "Happy Finance" discussed in this part.
the first point to be added is that, in terms of customer acquisition ability, China Merchants Bank and Ping An's more channel-featured mobile APP and Ping An's comprehensive extension team, which depends on the comprehensive operation of the Group, are the "cheats" for these two banks to outperform their peers.
The "Pocket Life" App of China Merchants Bank contributed a total of 3,844,4 credit card lists last year, and the successful consumer financial transactions through the "Pocket Life" App channel accounted for 49.47% of the total consumer financial transactions.
Ping An Pocket Banking APP has been upgraded and embedded with various financial technologies and services. The number of monthly activities has exceeded 25 million, the number of credit card users has exceeded 34 million, and the annual transaction volume of the credit card mall has increased by 231.2% year-on-year.
In addition, technology enables finance, and Ping An Credit Card has been audited in the past two weeks, and now it takes 8 seconds to close the case and the physical card is delivered to the customer in 48 hours. Ping An's intelligent customer service can also be online 7×24 hours, which is more humane and intelligent to solve customers' needs and questions.
another "secret book" that Ping An envies peers is that it relies on Ping An Group's comprehensive expansion channels, such as the comprehensive business development capability of the Group's 1.3 million insurance agents. At the annual report performance conference, Xie Yonglin, chairman of Ping An Bank, revealed that the comprehensive expansion channel not only has strong customer acquisition ability, but also the asset quality of recommended customers is better than other channels. The non-performing rate of credit card comprehensive expansion channel is 1.1%, which is .22 percentage points lower than the overall non-performing rate.
the second point to add is that the positioning of credit card business in many banks has become a "bridge": acquiring customers and transforming them, and comprehensively developing customers to use other financial products in the group.
At this point, Ping An Credit Card is the most representative, and therefore the credit card business is positioned as a "leading soldier" within Ping An Group. It builds a multi-dimensional financial service ecosystem, provides users with diversified, personalized and customized comprehensive services based on the comprehensive financial advantages of the Group, and becomes a "bridge" as mentioned above-for example, life insurance customers become bank customers through Ping An credit cards, and credit card customers can also become platform customers such as insurance, securities and trust after being circled by Ping An.
In terms of specific operations, Zeng Kuanyang, president of Ping An Bank's Credit Card and Consumer Finance Division, said: "For example, we have customized some installment products for property insurance and life insurance customers, and relatively high insurance policies can be bought by installments. Similarly, for securities, trusts, lufax, etc., we will also customize credit card products according to the customer and business characteristics of Ping An subsidiaries, and create a one-stop convenient service platform for these customers."
The comprehensive mechanism built by Ping An Group is also conducive to customer transformation. For example, the construction of the "New Pocket Bank APP", which is a collection of the original Pocket APP, Orange Bank APP and Ping An Credit Card APP, enables cardholders to have a credit card, which is equivalent to landing on an integrated financial platform integrating business functions such as loans, securities, wealth management and payment, connecting customers' life, consumption and financial scenarios; For another example, Ping An realizes internal data access (under the premise of full authorization of customers), enjoys the credit data of retail and credit card customers, and realizes embedded marketing of the whole product system.
It is mentioned in the financial report of Ping An Bank that in the future, with the deepening of strategic transformation, the retail side will gradually realize the use of LUM (asset business) to drive AUM and credit cards to drive debit cards.
There is a similar statement in the financial report of CITIC Bank, saying that the number of debit card customers driven by credit cards has increased by 5.5 million.
which is more "easy" in 218?
there is another key indicator of credit card: transaction amount. This indicator actually reflects whether card products and services are enough to win the favor of consumers.
On the podium of this key indicator, China Merchants Bank and Ping An once again lead the industry.
The ranking of the third and fourth places is also quite interesting. The total number of cards issued by Everbright Credit Card is nearly 7 million less than that of CITIC, but it surpasses CITIC in the transaction amount. It seems that as Everbright said in its financial report, it has achieved considerable results by "expanding its product line around the direction of' great tourism' and' great health' and launching credit card products covering a wide range of customers and consumption scenarios".
In addition, although the transaction volume of Pudong Development Credit Card last year was slightly lower than that of the best joint-stock group, it was still at a high level compared with other peers except the "Five Little Dragons", and it is worth noting that the bank's retail business was driven by credit cards in recent years, with a year-on-year increase of 51.42%.
In this part of the discussion, we also make two additions: card product design and the application of financial technology.
There is no need to explain the first point. Enriching the product system to meet the increasingly personalized, customized and differentiated needs of customers is the only strategy in the Red Sea competition pattern of credit cards. For example, last year, Ping An Credit Card successively launched joint-name card products combining the rights and interests of both parties together with Manchester United Football Club, Tencent Video, car home and Straight Flush, and created a brand-new platform for separating card rights to meet the needs of cardholders.
second, in interviews with many banks, we found that financial technology empowers card products, which makes consumers have a better experience of using cards and is also a magic weapon to increase transaction volume.
For example, Ping An Credit Card continues to exert its efforts in intelligent technology, promoting the construction of intelligent technology matrices such as intelligent customer service, intelligent robots and one-click service, and bringing users the ultimate experience of "fast, easy and good" with the help of the power of technology; China Merchants Bank Credit Card has completed AI deep learning in three intelligent channels: WeChat, QQ and Pocket Life App, explored a new Internet service model of "terminal+cloud service", and established a customer experience laboratory "VLab" to tap the real needs of customers and provide inspiration for product innovation.
which is more stable in p>218?
As mentioned above, personal credit risk began to spread to financial institutions in the context of the chaos of online loans and cash loans from the end of 217 to the beginning of 218, and the macro-level leverage ratio of residential departments has increased rapidly in the past few years. Is credit card a "prophet"?
this part will focus on the quality of PK credit card assets, and arrange them in the order of bad rate indicators from low to high.
From the performance of asset quality, China Merchants Bank and Ping An have once again become "top students"; Everbright Bank has not released this indicator separately, and CITIC Bank's credit card non-performing rate is temporarily at the bottom.
But don't worry too much. CITIC Bank said that it is "confident to control business risks at a reasonable level by continuously strengthening refined management". The bank said that during the reporting period, due to the chaos of cash loans and other industries, the non-performing rate of domestic credit card loans increased, and there were some worries about credit card risks in the market. However, compared with international experience, the forward-looking indicators such as leverage ratio of China residents, the proportion of credit card balance payable and the per capita card holding amount are still at a relatively safe level, and the credit card business still has broad room for development. From the bank's own reality, after years of system construction and resource investment, its credit card whole process business system and risk control system have been established.
On the other hand, as far as China Merchants Bank and Ping An, which have relatively stable asset quality, both banks mentioned the role of intelligent risk management in their financial reports.
Ping An deeply applied AI technology, deployed about 4 sets of big data risk models at various nodes involving customers to monitor and evaluate risks in all directions, and launched the "AI+ risk control" project. After a one-year construction period, it built a unified intelligent credit management system and automated approval process for retail customers, which was applied to credit cards, personal loans, auto financing and other product lines. At the same time, the bank will manage the anti-fraud of debit cards and credit cards in a unified way, build an enterprise-level anti-fraud defense line for large retailers, support the daily financial transaction volume of tens of millions, and change the current situation that the traditional anti-fraud operation platform needs to rely on the increase of manpower to improve the overall production capacity of the operation platform, and has the ability to provide services for the audit of various credit products.
Throughout the past five years, Ping An Credit Card has been in the channel of rapid development. Since 214, the number of credit cards issued by Ping An Bank has soared from 16.43 million to 51.52 million, and the transaction amount has climbed from 615.1 billion yuan to 2.7 trillion yuan. Under the situation of sustained high-speed growth, the risk of bad credit cards has been reduced from 2.77% to 1.34% (of which bad credit cards were reduced to 1.18% in 217). Although since 218, due to the rectification of cash loans, P2P explosion and other factors, the risk of * * * debt has spread, and the NPL ratio has rebounded by .14 percentage points in fiscal year 218, compared with the bad rebound of the card industry from 217 to 218, the slight rebound of .14 percentage points is still significantly better than the industry.
in 218, which one will earn more?
in developing business, we should always give consideration to benefits. With the deepening of the retail transformation of banks, the proportion of retail business income in the whole bank has been increasing, and the income contribution from credit cards has contributed a lot.
In terms of income contribution, China Merchants Bank and Shanghai Pudong Credit Card lead the way. This ranking is not unexpected, and the ranking is basically consistent with the loan balance above. (Although Ping An Credit Card has not published income data in its annual report, we can speculate that its income is also among the best according to its second-ranked credit card loan balance. )
In this ranking, it is worth paying attention to the Shanghai Pudong Development Bank, which ranks among the best. Although the bank's card issuance volume is not high in the "Five Little Dragons" and the loan balance is only in the middle reaches, at the annual report conference, Pan Weidong, vice president, said that the credit card business has performed well in intermediary business income such as handling fees in the past year. In 218, Shanghai Pudong Development Bank recorded a fee and commission income of 46.25 billion yuan, of which the contribution of bank card fee was as high as 5.6%, which was 23.39 billion yuan.
It is reported that in the multi-polar development of Pudong Development Bank's retail transformation around the strategic goal of "first-class digital eco-bank", wealth management and liabilities are the first pole, credit cards are set as the second pole, retail credit is the roof of the world, and private behavior is the fourth pole.