ICBC Takes Lead in Issuing 100 million Credit Cards in China
OREANDA-NEWS. January 14, 2015. With credit cards issued in China exceeding 100 million, ICBC remained as the biggest credit card issuer in Asia Pacific and the third biggest credit card bank globally.
Since issuing its first Phony card on 15 October 1989, ICBC has seen strong growth in credit card issuance. Specifically, it was the first to reach the mark of 10 million, 50 million, 80 million and 100 million credit cards issued in China respectively in 2006, 2009, 2013 and 2014. A quarter of credit cards issued in China is with ICBC. Currently, annual spending with ICBC credit cards has reached RMB 1,883 billion, 84 times bigger than Phony Card Center was initially established; and the loan balance increased sharply by 263 times than in 2002 to RMB 366.2 billion.
In addition to leadership in credit card scale, ICBC has been well received by the market and users due to product innovation, customer experience and service quality, among others. So far, ICBC has 66.97 million credit card customers, and the rate of credit card activation and active credit cards leads the banking industry in China.
First, ICBC has accelerated product innovation to lead internet finance. As the first full-brands credit card issuer in China, ICBC has continued to develop new products in favor of customers to meet their diversified requirements. The Bank launched the world’s first multi-currency credit card and the first global travel credit card, saving consumer cost by exempting currency conversion fee for overseas consumption. Besides, it ushered in Easy Loan Corporate Card for Micro and Small Merchants, the first of its kind in China purely based on big data to provide unsecured financing requiring no mortgages for micro and small merchants. In response to the trend of internet finance, ICBC has utilized big data technology in a series of product innovation. In September 2014, ICBC was the first to roll out online POS leveraging the highly-reliable safety certification technology to provide customers with easy and smooth payment experience under the idea of “Pay with One Click”. Furthermore, ICBC has developed digital credit card, HCE cloud payment and other emerging payment products for smarter, more stylish and convenient mobile life.
Second, the Bank has optimized card use environment and built an extensive payment network. With POS as the link, ICBC has built a stable, safe, efficient and convenient payment network across almost all sectors such as catering, shopping, travelling, education and transportation. To bring more benefits and convenience for customers, this network is all inclusive, covering not only grand hotels, large department stores and hypermarkets but also convenience stores, gift shops and coffee houses. ICBC has launched large-scale promotions at home and abroad to encourage card-based consumption. Rather than restricted to an area or a certain period, the promotion is based on regular, systematic and global initiatives. In China, ICBC selects 10,000 high-quality merchants to launch various promotions such as bonus points for cash and lottery upon swiping cards. Overseas, ICBC works with card organizations and famous foreign online shopping portals to build the promotional brand “I GO Global", transforming the Bank’s resources into customers’ consumption.
Third, ICBC has established a system to benefit customers and improve service quality. Over the past few years, ICBC has spared no effort to establish a service channel integrating telephone, SMS, internet banking and WeChat as well as a customized service system for high-end customers. More than 90% of the calls to the Credit Card Call Center could be answered within 20 seconds, well above the level of its Chinese peers. In terms of service content, ICBC is the first Chinese commercial bank that cancels full-amount default interest. Customers have various options for repayment date to enjoy the longest repayment term and the maximum preference in repayment amount. Furthermore, ICBC also offers value-added services such as discount for car cleaning and rental, and bonus point activities, which has won tribute from cardholders.
ICBC credit cards has harvested outstanding achievements in 2014. ICBC became the first Chinese bank to issue more than 100 million credit cards; it received the “2014 Best Asia-Pacific Risk Control Award” from the Visa International Service Association, becoming the first Chinese bank to win this title; it was granted the Global Finance “Best Commercial Corporate Credit Card”; it was selected as the “No. 1 Credit Card Brand in China” by the Ministry of Industry and Information Technology. Based on the mark of 100 million credit cards, ICBC will continue to fulfill the idea of “All for Cardholders” and “First We Do” to overcome the change in market environment and the challenge of internet finance and speed up for the strategic goal of the “World’s Largest Card Issuing Bank and China’s No.1 Credit Card Brand” .
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