"Gold Card Life" Magazine

Sponsored by China UnionPay

Discussion on Theoretical Research and Practice

On the afternoon of August 23, Sina Finance The "2018 China Banking Industry Development Forum and the Sixth Bank Comprehensive Selection Awards Ceremony" with the theme of "Credit Card Innovation and Breakthrough" was jointly held with "Gold Card Life" magazine and 51 Credit Card at the Westin Hotel in Beijing Financial Street. Roundtable discussion”. Wang Kongping, executive publisher of the payment industry publication "Golden Card Life" magazine, which is managed and sponsored by China UnionPay, served as the host of this session. The "roundtable discussion" also adopted "off-site interaction", allowing off-site guests to answer on-site questions "from a distance".

Roundtable Discussion

List of guests for the “Roundtable Discussion”:

Mr. Liu Jialong, Secretary of the Party Committee of China Merchants Bank Credit Card Center,

China Everbright Bank Credit Card Mr. Chai Rujun, deputy general manager of the center,

Mr. Jiang Yongjun, vice president of the credit card center of Ping An Bank,

Mr. Tao Rong, general manager of the retail banking department and general manager of the credit card department of China Zheshang Bank,

Mr. Lei Mufa, senior credit card expert of Industrial Bank,

Mr. Sun Haitao, CEO of 51 Credit Card.

Off-site interaction

Guan Chongming, Vice President of the Guilin Central Branch of the People's Bank of China (expressed personal observations in response to questions from commercial banks and does not represent the views of the employer),

Dong Zheng, an independent observer of the bank card industry,

Huang Renjie, Asia Pacific Financial Market Director of Entrust Datacard.

The "Innovation" part of the roundtable discussion

Question 5

Moderator: Let's refine it. The key word of the third topic is "Understand the nature of finance." , that is, establishing credit, using leverage, and controlling risks. "When in a "small-amount, fast, high-frequency, mobile, and localized" payment scenario, users "wave, flash, and touch" their mobile phones and forget to take out the card from their wallet. action. In terms of the growth rate of the number and amount of transactions, from 2013 to 2017, bank card transactions were lower than mobile payment transactions. Taking 2017 as an example, they were lower than 16.65 and 26.13 percentage points respectively. Even in the first half of this year, the above conclusion has not changed.

Applying for a bank card and opening a bank account are one and the same operation, and they correspond closely. Therefore, changes in the payment medium do not change the dependency relationship between the physical card and the account. Since the card base and account are the basis of cardless payment, and barcode payment is only a useful supplement to physical card payment, we must promote bank accounts just like we promote credit cards. Among them, what is the effect of opening and applying bank type II and III accounts?

"Roundtable Discussion" scene

Liu Jialong: Moving from card-based payment to account-based payment, will cards disappear? China Merchants Bank previously proposed to take the lead in eliminating “star credit cards”. Although there will be a trend of account-based payments, cards will not disappear, just like cash will not disappear in life. Cash and cards may be kept in wallets for backup.

We have been working hard to prepare for the migration from card base to account base. Adopting a "mobile first" strategy and using mobile banking and mobile life apps as strategic starting points, the Bank will continue to consolidate and improve its advantages in wealth management, consumer finance, and retail loans. We proposed Retail Business 3.0 and gave App a special meaning. Now, we have entered the "App first, then card" stage.

Chai Rujun: It should be said that the launch of bank II and III bank accounts has created conditions for us to develop some functions in payment. At present, the application of bank type II and III accounts is still in an exploratory stage. How can banks take advantage of the conditions for good account classification to promote the application of bank type II and III accounts in certain areas, such as small consumption scenarios.

Jiang Yongjun: To open a bank Type I account, you have to go to the counter or have bank personnel come to your door for service. The process is relatively complicated. Opening type II and III bank accounts is actually an innovation in banking business and a measure to allow residents to better enjoy financial services. Although it is easy to open an account using Internet technology, if banks do not integrate with some scenarios, it is likely that many of them are empty accounts, which are only reflected in the number of bank accounts and do not create real value.

We need to cater to some scenarios so that customers can open an account at any time, enjoy services and use them conveniently when they really need it.

For example, smart credit card repayment. Credit card customers can click on our "Pocket Bank" to open bank type II and III accounts with one click, bind bank cards from other banks, and transfer funds back on a regular basis. You can automatically buy financial products before the repayment date; when the repayment period comes, the financial products can be automatically redeemed to repay the loan. The convenience of opening an account is one aspect, but more importantly, it must meet the scenario-based needs of customers. Only the type II and III bank accounts opened can play a better role.

Tao Rong: Bank II and III type accounts may be more closely integrated with the bank’s personal business and life.

For example, traveling. My own experience is that I am more willing to wave my bank card than to call out some extra links from my mobile phone. The feeling of passing through the gate is the same as using a transportation card. A rather embarrassing problem is that mobile payments are actually bank cards or bank accounts. However, in actual use, customers are often willing to say "I use 'XXX Bao' to pass the gate" and "I use WeChat Pay to take the bus."

In fact, this situation has changed. Hangzhou is known as the "City of Mobile Payments". Our head office is located in Hangzhou and we have a deep experience. UnionPay "UnionPay QuickPass" can be used on the subway and all bus lines, including various mobile Pay.

In addition, we have seen that UnionPay and banks jointly have relatively in-depth cooperation with Internet companies based on bank type II and III accounts. Therefore, whether UnionPay or bank credit cards have innate "hardware" advantages, I am very optimistic about the development of UnionPay mobile payment.

Lei Mufa: A credit card customer may use "XXX Bao" or WeChat payment many times in a year. I personally believe that this behavior will have a great impact on the entire credit card industry in five years. impact.

For banks, upgrade and improve their apps, build the entire ecosystem, improve bank customer stickiness, and embrace changes in bank account structure based on the premise of adapting to customer needs.

Sun Haitao: I personally believe that online and mobile payments, including card issuance and finally virtualization, will become an irreversible trend. Based on security considerations, the type II and III bank accounts we promote have great application potential. For example, based on the Bank II account, we have cooperated with several banks.

Off-site interaction

Guan Chongming: Bank Type II and III accounts were initially just a measure taken by regulators. As market participants, we will definitely dig out value from them and develop products. This is the charm of market economy. Bank II and III accounts have a good balance between payment security and convenience, especially online remote opening, which has the greatest convenience for customers and also takes into account the greatest security. Faced with numerous payment participants and competitors, as well as low marketing efficiency, the market acceptance of bank accounts continues to decline. All parties must have a sense of crisis. Only with an open and sharing mentality can banks II and III Only by realizing the integration and unification of bank account payments through account-like payment can we achieve a breakthrough. Otherwise, with so many bank apps and various bank account payment products, our own practitioners may not be able to explain them clearly, let alone merchants and consumers? If you refuse to be tortured, you will fall into the arms of payment account payment.

Huang Renjie: The opening of bank type II and III accounts is a direction that banks have vigorously developed in the past two years. This can be seen from banks' continuous efforts in various channels including online banking, Apps, direct banks and self-service machines. This can be seen in the establishment of the function of opening such an account.

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