Since August, credit card centers of many banks, such as Agricultural Bank of China, China Construction Bank, China Merchants Bank, Xingye, Ping An and China Everbright, have issued announcements one after another, demanding that credit cards of real estate developers be tightened. Some banks limit the amount, while others prohibit trading. Many banks actively expand credit card business. The fundamental reason is that the profit rate of credit cards is very high.
At present, debt is a very common thing. Consumption in advance is a common feature of many young people. Many people have low incomes, but there are not a few who live on credit cards. It is also in this market environment that the credit card business is developing rapidly, and it is expected that there will be a lot of room for growth in the future, so the credit card is a very big cake, which can bring huge profits to banks continuously. Due to the huge profit margin of credit card business, many banks attach great importance to credit card business and try to expand its scale.
Many banks continue to reduce the annual fee for credit cards. Among many credit card charging items, the annual fee is the first charging item, but the credit card business market is obviously not as hot as before. Recently, the "20 17 China Bankers Survey Report" issued by China Banking Association shows that only 45.8% of bankers choose credit cards as the focus of personal financial business development, less than 50%, which is the first time that credit card business has been out of the top three concerned by bankers.
The credit card center of a joint-stock bank also admitted that the credit card business only has business days for installment payment, which is better. Due to the decline in credit card attention, banks made concessions on the first item of annual fee in order to attract customers.