Development status of joint card business

Co-branded cards are one of the most important sub-products of credit cards. They are also the leading products of credit cards and are issued in cooperation with issuing banks and commercial organizations. Compared with ordinary credit cards, co-branded cards are based on the services and equity provided by banks, and they also provide additional services provided by joint companies. In addition to the macroeconomic factors such as disposable income level and price level, on the micro level, consumers' preference for payment instruments and their consumption scale depend to a certain extent on the marketing content attached to the payment instruments. Therefore, the co-branded card showed higher frequency and intensity of consumption than the average credit card. The following is the status quo of business development of co-branded cards:

1. Co-branded cards occupy a major position in credit card products with high activity and consumer intensity

The cooperation between commercial banks and commercial institutions forms a win-win situation. For cooperative agencies, through credit card bonus points, gifts and other service items, driving cardholders to spend more, companies can achieve better returns. For commercial banks, through the launch of co-branded cards to strengthen cooperation with effective market resources, the market share can be effectively expanded. Customer sharing and cross-selling have improved the quality of co-branded card issuance, making co-branded cards the main products of credit cards.

According to the statistics of the 19 new credit card issuing banks in the “2011 China Credit Card Industry Development Blueprint”, in 2011 China’s banking industry issued a total of 183 innovative card products, of which more than half were joint cards. Industry insiders estimate that in the number of credit card products, co-branded card products account for as high as 70%, and in the total number of credit card issuances, co-branded cards account for no less than 40%.

2. Co-branded card partners mainly focus on aviation, insurance, retail and automotive industries

According to the different industries in which the joint agencies are located, the joint name card can be further subdivided into the airline joint name card, retailer joint name card, auto co-branded card, hotel co-branded card, and insurance co-branded card. The aviation, insurance, retail, automotive and other industries have huge customer resources, and the customer financial payment demand has a high correlation with industry demand. Therefore, the customer sharing and cross-selling effect is obvious, and joint card sales in these four industries are more.

(1) Aviation joint card . The aviation co-branded card is mainly for business travelers and mid-to-high-end people. It effectively attracts cardholders by opening cardholder spending points to airline points and providing points for free flights. At present, most domestic airlines have issued co-branded cards in cooperation with issuing banks. The difference between the airline co-branded cards issued by the issuing banks is that according to the agreement reached between the bank and the airline, the "price" of the consumption points and the exchange of airline points are different.

(2) Insurance Co-branded Cards. The issuing bank of the banking industry and the insurance company jointly issued the card, which satisfies the needs of cardholders, commercial banks and insurance companies. From the perspective of cardholders, with China’s current national insurance awareness, it is less likely to take the initiative to insure, but at the same time there is a demand for insurance. With credit card insurance, it just meets their dual needs of financial management and insurance. From the perspective of banks and insurance companies, first of all, cross-selling effectively reduces the cost of obtaining customers from both sides. In particular, for banks, the cost of obtaining a credit card customer from the insurance industry is about 1/5 of the cost of acquiring a new customer from outside the industry. Secondly, it can greatly increase the contribution of both parties' customers. Statistics show that the average activity rate of customers holding insurance co-brand credit cards is 20 percentage points higher than that of ordinary customers who hold ordinary credit cards, and the consumption of active card single cards is more than twice that of ordinary credit card customers.

With the continuous refinement of credit card services, the types of insurance provided with the cards are gradually diversified, allowing cardholders greater choices and maximizing the value-added services of their credit cards. At present, China's credit card market is relatively rich in insurance products. In terms of content, it is broadly classified into four categories: aviation insurance, women's insurance, lost-card insurance, and family insurance. These four types of products basically cover all aspects of cardholders' lives. From a formal point of view, there are several ways of issuing card insurance, bonus insurance, credit card insurance, and cardholder self-purchase insurance, which provide cardholders with multiple options in obtaining insurance.

(3) Retail department store co-branded cards. Compared with the above two types of co-branded cards, the retail department store industry is one of the most frequent and transaction-intensive industries in the daily life of the general public. It can attract cardholders for consumption through discounted promotions and other promotional methods. The issuing banks have jointly launched various retail department stores. A large number of department stores jointly card. The characteristics of these co-branded cards mainly include the following points: First, discounts. In general, discount rates for Puka, Gold, and Platinum cards are different. Second, special services are provided. For example, cardholders can enjoy free baby carriages and disability. People's vehicles, umbrellas, VIP free parking, and many other in-store services; Third, regular points gifts, cardholders can get credit card issuing bank and retail department stores double reward rewards.

(4) Automobile joint card. Automobile co-branded cards are generally credit cards introduced by owners, which can provide certain discount or integral gifts for cardholders in the purchase of auto insurance, fueling, and maintenance. With the increasingly fierce competition in the Chinese auto market, manufacturers must adopt various means to retain old customers and attract new customers. At the same time, the normalization of vehicle sales profits has made after-sales service a major source of profit for manufacturers and distributors in particular. The launch of automotive co-branded cards can attract customers through multiple sales and after-sales service projects, thereby increasing customer adherence. .

Relevant statistics show that China’s car ownership has exceeded 100 million, and there are 14 large and medium-sized cities with more than 1 million cars. With the rapid increase in the number of automobiles, the number of joint car cards has gradually increased, and there is still room for further expansion of the joint car card market in the future.

3, issuing bank multi-party search for cooperation in the field of business

With the continuous improvement of people's living standards, their material and cultural needs have shown a diversified development trend, and the quality of life requirements have gradually increased. The homogeneity of co-branded cards in the aforementioned four industries is serious and it is difficult to meet the diverse needs of cardholders. Under the business philosophy of precision marketing and customer segmentation, most card issuers seek out cooperative merchants in areas such as health care, physical examination, fitness, sports, education, and beauty, and integrate wine tasting, art appreciation, and lifestyle guidance. Child education resources and family travel services.

With the continuous changes in the partners, the joint card business has become more and more detailed, the number of target customers has gradually decreased, and the population has continued to increase. Commercial banks' newly-developed business varieties have become increasingly widespread.

4. More and more Internet Business Credit Cards

With the gradual popularization of the Internet and the rapid development of e-commerce, cardholders’ consumption habits have also shifted from offline to online. Internet service co-branded credit cards have become an innovation hotspot of card issuers. Since 2010, the credit card business has increased cooperation with the Internet industry. The Bank of China and China CITIC Bank have respectively launched the BOC Taobao Campus Card and the Tencent QQ Card. The Construction Bank has issued the Yilong Changlong Dragon Card, and China Merchants Bank has joined the happy network and released a happy one. Card, Guangfa Bank issued the NetEase game card, Industrial Bank issued the Taobao joint name card, commercial bank realized preliminary cooperation with Tencent, Taobao, Netease, eLong and other well-known Internet companies.