The Industrial Bank recently told the press that the number of credit cards it has issued has now exceeded the 5-million mark. This positions the Bank as a major domestic credit card issuer. In the wake of the global financial crisis, the credit card market has become more complex and the rate of non-performing assts has increased. Despite this, the Industrial Bank's credit cards have maintained excellent asset quality, with the non-performing rate being among the lowest in the industry.
Since last year, the global financial crisis has been impinging on the physical economy, and has exerted a direct impact on the credit card market. In the meantime, the employment situation has worsened and personal financial assets have witnessed major contraction. This has led to a drop in people's ability and willingness to repay debt, which in turn has led to an increase in credit risks. Incidents, such as short-term finance using credit cards, collective cash out and card fraud have also occurred frequently. In this context, the prevention of risks has become a serious issue facing card issuing banks.
The Industrial Bank enjoys one the best levels of credit card issuing quality in the industry. One of the main reasons for this is the Bank's long term commitment to balancing business expansion and risk control. According to the personnel in the Bank, IB has set the objective of improving the quality of clients as it carries out comprehensive management of business risks. Prudent credit appraisal policies have been executed and the control of comprehensive risks involved in card use has been strengthened. Thus, risk prevention comes into the equation earlier, and overdue collection and post-credit management are tackled vigorously. To deal with the issue of cash out with credit cards and credit card fraud, IB has brought its strengths in information systems and personnel allocation into full play in order to crack down on such activities. It has ensured that risks in credit card business can be kept under control as it increases the number of cards issued.
Moreover, the Bank is a step ahead of its rivals in terms of innovation in credit card products and functions. The Industrial Bank issued the Garfield Card in 2005, which was the first credit card in China with a cartoon theme. More than 1 million cards in the Garfield series have been issued. Not only welcomed by users, the cards have also claimed several awards in influential credit card appraisals. In 2007, the Bank released the innovative service concept “Platinum Life and Premiere Family”, for its platinum cards, which received an excellent market response. At the end of 2008, the Industrial Bank launched the Leisure Series of Platinum Credit Cards, which are the first cards in China to be centered on the theme of “Exclusive VIP Services”. This established a new model for high-end credit card services in China. Moreover, a mode for the use of bonus points has been developed. Bonus-point consumption and advanced points, which are original concepts, have gone down well among users for the value and convenience they provide.