Transition from "scale-driven" to "value-focused" Credit card business presents "Matthew effect" (Note: The "Matthew effect" refers to the phenomenon where the rich get richer and the poor get poorer, based on the biblical passage in the Gospel of Matthew.)

Data from the People's Bank of China shows that as of the end of the second quarter, the total number of credit cards and loans combined was 715 million, which has decreased for 11 consecutive quarters. Compared to the first quarter's 721 million, there was a 0.83% decrease, and compared to the peak of 807 million, there was an 11.4% decrease. In the first half of 2025, the effects of cleaning up "dormant accounts" for credit cards continued to show, with the overall issuance volume of the market and credit card transaction amounts of major banks showing a downward trend. At the same time, banks are changing their strategies from a "scale-oriented" approach to a "value-oriented" approach, and some banks are starting to see signals of a turning point in the bad debt ratio of their credit cards. Industry insiders predict that with increased competition in the industry, the profitability of credit card business for different banks will continue to differentiate, demonstrating a "Matthew effect."