Major Banks Trim Down Credit Card Businesses, Industry Enters a New Era of Precision
Recently, the domestic credit card market has been in constant motion. The rights of equity have shrunk, some products have ceased to be issued, and branch closures have become a reality, drawing widespread attention. Specifically, Industrial and Commercial Bank of China (ICBC), Bank of Communications, and Ping An Bank, among others, have announced adjustments to their high-end credit card products' rights and related activities, involving increasing the usage threshold, adjusting reward rules, and reducing high-end privileges; meanwhile, many banks have announced the suspension of certain credit card products, with joint-name cards accounting for a large proportion. Moreover, over 40 bank credit card branches have been approved to cease operations within the year. The trend of transformation in the credit card industry has become increasingly apparent.
Liu Feipeng, a researcher at the Postal Savings Bank of China, told the Securities Daily that these phenomena reflect three major changes in the Chinese commercial banking sector's credit card business: from scale-oriented to value-cultivated, from relying on interest rate differences to ecological manifestations, and from product-centered to customer-focused. This means that the industry has moved from a rough, expansionary stage to a refined, precise one.
In terms of future developments, the focus will be on scenario-based joint-name cards, digital credit card iteration, AI-precise marketing, and customer ecosystem construction. Through dynamic tiered segmentation and scenario-based operations, banks will build new value "moats."
Increase the usage threshold
According to incomplete statistics, since July, many banks, including Agricultural Bank of China, Industrial and Commercial Bank of China, Postal Savings Bank of China, and Ping An Bank, have announced adjustments to their high-end credit card products' rights and related activities. The adjustment contents are mainly focused on three aspects: one is increasing the usage threshold, such as increasing the ratio of miles earned through redemption, setting consumption amount thresholds; two is adjusting reward rules, with some scenarios no longer accumulating rewards or shortening the validity period; three is reducing high-end privileges, replacing airport lounge benefits and upgrading to more practical benefits.
For example, the credit card center of China Construction Bank recently issued a notice stating that from September 1, 2025, the VIP lounge privilege for the "World's Extreme" credit card will be adjusted, with the service provider changed to a local company and unlimited use limited to the primary cardholder.
The announcement from the credit card center of Industrial and Commercial Bank of China states that starting from September 1, 2025, all issued UnionPay-Visa dual-label high-end magnetic stripe cards will be gradually replaced with chip cards, and the classic white gold credit card (hereinafter referred to as "Classic White") will have its annual fee rules adjusted. Specifically, the new chip card Classic White annual fee rules will change from the original "10,000 points exempt from annual fees" to "10,000 permanent points plus additional spending of 180,000 yuan" to redeem the annual fee.
In addition to rights adjustments, credit card products are also undergoing a "slimming" process. This year, Agricultural Bank of China, Industrial and Commercial Bank of China, Postal Savings Bank of China, Ping An Bank, and other banks have successively announced the suspension of certain credit card products, with joint-name cards in the fields of aviation, e-commerce, and entertainment accounting for the majority. From the reasons for suspension, most banks mentioned "business strategy adjustments," "improving service quality," "contract expiration," and "business development needs."
From incremental expansion to depth cultivation
In recent years, the banking industry has undergone significant changes, with a particularly prominent phenomenon being the closure of offline credit card branches. From an industry-wide perspective, whether it's optimizing organizational structures or suspending joint-name cards, adjusting rights and related activities, all indicate that the credit card industry has bid farewell to its expansionary era of rough operations and entered a new stage of refinement.
According to Su Chaoyang, a researcher at Shougang Bank, this intense adjustment is driven by both market environment and bank-specific operational needs. The core logic is that the industry has shifted from incremental expansion to depth cultivation. Banks need to optimize operations through precision marketing, focus on core customer segments, and refine product offerings; meanwhile, consumer preferences are shifting towards high-frequency, just-in-time scenarios, which also drives the industry's transition towards a new stage characterized by "streamlining and optimization."
Su Xiaoyi believes that adjustments arise from the industry's multiple challenges: intensified competition in the credit consumption market, pressure on credit assets, and refined financial regulatory requirements. Internally, the development mode was previously relatively rough, with product innovation capabilities requiring improvement; externally, it needs to respond to the rapid growth of internet giants' credit payment products and their encroachment on scenario traffic. These factors collectively drive the credit card industry towards a more concentrated direction.
Regarding future development directions, Su Chaoyang believes that in the stage of competitive intensity, the focus should be on deep cultivation of existing customers' value: one is to design tiered reward systems for high-value and active users, respectively, through refined operations to activate potential value; another is to strengthen scenario coverage, integrating shopping, travel, entertainment, and other high-frequency consumption scenarios, providing comprehensive financial services; in addition, building a rights loop, linking credit cards with wealth management, private banking, and other businesses to provide comprehensive financial services for high-value customers, upgrading the credit card from "traffic gateway" to "value hub."
Su Xiaoyi states that the current industry is transitioning from "issuing cards to gaining customers" to "precise cultivation of existing customers," shifting attention from quantity to quality and reshaping business logic based on value contributions. At the same time, retail financial development strategies are becoming increasingly refined, with banks linking savings, wealth management, lending, credit cards, and other businesses to enhance high-end customer comprehensive financial services quality, improve their retention rates, and ultimately generate more profits for institutions.