Credit card business as a non-cash transaction payment method is a special industry. It is not only a simple credit trust, but a settlement and consumption method towards the future.
Credit card risk is emerged in the Global Financial Crisis (GFC) and the U.S. credit card crisis. Under a rapid development of credit card business in China, related problems and contradictions are highlighted. Solutions are needed for the problem and the whole business. At the moment, the researches on credit card problems are mainly focused on credit card itself, rather than the development of banks’ credit card business. With a statement of current development status of Chinese banks’ credit card business, this article will discuss the related problems. And the concrete manifestation and relevant impacts will be stressed. Furthermore, a bank’s real case is introduced in the research.
This article stresses on the following three factors in the analysis progress: 1) the volume of credit card issuers and banks’ profits. The correlation between the volume of credit card issuers and banks’ profits will be stated. Additionally, this article will discuss the specific components in the profits; 2) credit card risk. In this part, by the study of the risk factors, an analysis of the potential risk will be introduced; 3) credit card services and marketing. According to the 4P, 4C, 4R Theory, we will specify the operation in the credit card services and marketing. Trough further researches on the credit card market, this article will discuss the relevant risk and risk management solutions, meanwhile, explore what kind of services and marketing methods credit card business should adopt as to bring a positive effect to the business.
