(Yicai Global) Feb 17 – Standard Chartered China is optimizing its credit card application process and will resume accepting applications once procedures are completed, the British lender said on Feb 15 after an earlier suspension of service sparked concerns. market concerns. it was withdrawing from the Chinese credit card market.
No new credit card applications will be accepted from Feb. 20, Standard Chartered China said on Feb. 14. The lender had already suspended its online application channels early last month. Existing users will not be affected, he added.
Standard Chartered launched its credit card business in China in 2014 with two products aimed at the middle to high income bracket. Since then, no new products have been released.
“Standard Chartered’s credit cards are not widely used in China, and perhaps the scale of their business is not large, so it is understandable that the bank decides to suspend this business,” Dong said. Zheng, credit card market analyst, at Yicai Global.
A number of other foreign banks are also facing problems in China’s credit card market. In April last year, US lender Citibank announced it was quitting retail banking in 13 markets, including China. And British bank HSBC has cut the number of credit card products it has in China to eight from 20 a year ago.
Foreign banks tend to target mid- to high-end customers, which have a limited consumer base, and this is a segment where local banks are already established, Dong said. This means their customer acquisition costs are high. Additionally, many international banks are not sufficiently localized and use global business strategies, resulting in services that do not adequately cater to local customers, he added.
Editor: Kim Taylor