Brother Huang, did you see the recent news about credit cards? Many banks are suspending co-branded cards.

Yes, I saw. This is actually a transformation from 'land grabbing' to 'refined cultivation.' Banks need to eliminate inefficient card types.

Right, now platforms like Alipay and Meituan have stronger consumer scenarios. Credit cards relying only on interest-free periods and reward points are not attractive enough.

Exactly. With installment rates falling and bad debt rising, the balance between returns and risks is off. If banks keep competing on quantity, they’ll lose even more.

So they need to build ecosystems, like integrating credit cards with wealth management, travel, and entertainment to boost user stickiness.

That’s right. For example, China Merchants Bank’s Palm Life app has already become its own traffic hub, not just a tool for swiping cards.

In the future, physical cards may decrease, replaced by virtual cards or integrated mobile services.

Yes, the industry is entering a strategic restructuring period. It’s a challenge for banks, but good for users since services will be more precise and closer to their needs.