According to information disclosed by the China Banking Regulatory Commission (CIRC) recently, in the third quarter of 2020, among the banking consumption complaints received and forwarded by the CIRC and its local offices, 48,406 were related to credit card business, up 43.5% month-on-month and accounting for 56.9% of the total complaints.
Among them, the number of credit card complaints doubled in the third quarter compared with the previous quarter at three banks: China Construction Bank, Bank of China, Huaxia Bank and Hengfeng Bank. In addition, industrial and Commercial Bank, Agricultural Bank of China’s credit card complaints also increased by more than 90 percent month-on-month.
Insiders believe that in the third quarter, banks generally increased credit card collection efforts, installment business marketing and human customer service is not timely, or may intensify the disputes between banks and credit card customers.
Credit card complaints soar
As one of the main personal business types of banks, the number of complaints related to credit cards accounts for more than half of the total complaints.
In the third quarter, credit card business accounted for 53.6 percent of complaints against large state-owned commercial banks, according to information released by the China Banking Regulatory Commission. Among the complaints involving joint-stock commercial banks, credit card business accounted for 82.4 percent of the total. Credit card business accounted for 76.7 percent of the total number of complaints against foreign-funded banks.
According to the report on the operation of the payment system in the third quarter released by the Central bank, 766 million credit cards and credit cards in use in Q3 will be issued in 2020, with a quarter-on-quarter growth rate of 1.29%, which is still lower than the growth rate of more than 3% in the same period of last year, but a new high this year.
Banks, recovering from the first half of the epidemic, increased the rate at which credit card sales were promoted in the third quarter. A member of the credit card department of a joint-stock bank even said that despite the impact of the epidemic, the head office has not relaxed its assessment of the number of new cards issued throughout the year.
According to the data disclosed by the Central bank, the total amount of bank card credit in China has increased by 3.8% month-on-month, not only recovering from the low of 2% in the first two quarters of this year, but even exceeding the growth rate in the same period of last year.
Credit card hairpin quantity and total credit scale both in the recovery growth in the third quarter, after testing the bank credit management, customer management, the ability of the joint stock system bank credit card business, he says, business growth and customer complaints growth is positive correlation, the relationship between credit card users reasonable Suggestions, complaints can also help the problems in the bank credit card product operation in time, improve service quality.
According to the data in the cirC’s statement, the proportion of credit card complaints from joint-stock banks is higher than those from state-owned banks, and there are also base reasons. From the credit card business in the proportion of retail business, joint-stock banks are generally higher than state-owned banks. According to the statistics of “Bank Data View Card”, the data analysis disclosed in the 2019 annual report shows that, from the perspective of the retail credit ratio of credit card business (retail credit ratio = credit card loan balance/retail loan and total advance payment), joint-stock commercial banks are higher than national banks. Joint-stock banks generally in 20% to 30%, the five big state-owned banks this indicator is around 10%.
Changes in credit Card Service
The CIRC’s circular did not disclose a detailed classification of credit-card complaints. But according to a person in charge of a mid-sized bank’s credit card business, overdue payments and interest rates are among the “high-risk complaints” the bank’s customer service department receives.
“The impact of the outbreak is not completely faded, personal income instability caused by the overdue payments, at the beginning of the epidemic according to regulatory requirements, customers have to serious epidemic areas policy, years later, as the return to work and production, the outbreak caused by overdue Banks tightened delay reimbursement policy review, customer emotional friction caused by increased.” The above credit card business personage says, the bank also bears this to collect reimbursement, cancel after verification, depress undesirable pressure.
This year, the Shanghai, Beijing and Shenzhen banking and Insurance regulatory bureaus have issued warnings about the risks of credit card business, which mainly focus on identifying credit card installment business, rational consumption, reasonable debt, not “keeping your card with your card” and protecting personal information security.
The bank not only actively issues cards this year, but also strengthens the marketing efforts in terms of promoting the installment consumption of credit cards and increasing income. However, in terms of installment, cash withdrawal fees and overdue interest fees, the card users are often not clearly informed in the publicity link, which is also likely to lead to disputes in the later period.
When releasing the Index for November 2020, “Silver Digital Watch card” said that this year’s “Double 11”, as the biggest consumption season after the outbreak of the epidemic, began to heat up in mid-to-late October and experienced two peaks of sales. The online transaction scale showed a significant increase compared with the same period last year. With the closing of “Double 11” and the arrival of a series of consumption seasons such as “Double 12”, Christmas and New Year’s Day, residents’ online and offline consumption enthusiasm will continue to rise. For credit card business operation, it is still the key point to promote consumption and transformation through precision marketing.
On the other hand, through the introduction of artificial intelligence technology in recent years, banks generally increase the proportion of “robots” in customer service to save labor costs and improve service efficiency, which is disclosed as a bright spot of science and technology in the annual reports disclosed by many banks. But not long ago, a post “CCB machine customer service is teased by netizens need to go through layers of ‘checkpoint’ before entering the manual service” hit the hot search, in the comment area has caused a lot of netizens resonance.
The above medium-sized bank credit card personnel believe that the current level of “wisdom” of artificial intelligence, regarding the emotional perception of customers, is very efficient in dealing with simple card issuance and card consultation, but sometimes it is not enough to deal with the customer complaints caused by complex post-loan operation, instead, it intensifies customer complaints and escalates. With the increasingly fierce competition among various credit cards, banks also need to think more about the transformation of service processes, timely respond to customer needs, and improve customer experience satisfaction.