Research On Credit Card Marketing Strategy Of YC Bank Hainan Branch

On June 1,2020,China released the Master Plan for the Construction of Hainan Free Trade Port(FTP)(hereinafter referred to as “the Plan”),which has offered tremendous opportunities for the development of Hainan,especially for the financial industry.The Hainan FTP will open the financial industry wider to the outside world,and inject vitality to marketplaces such as equities,property rights,and shipping.In addition,the FTP will accelerate the process of financial reform and innovation.Specifically,the Plan diversifies the access to financing for industries;attracts more capital funds from foreign-funded enterprises;and underpins the real economy.At the same time,the Plan focuses on innovating financial policies,products,and instruments,in order to adapt to the rapidly-evolving financial industry.By December2020,over 17 banks have settled in Hainan Province.Except for a small number of new local banks,the business of credit cards has become the essential source of income for most banks as an effort to shift to the retail model.As one of the six major state-owned banks,YC Bank boasts wide network distribution,large customer base,and positive corporate image.However,given a short history of its credit card business,YC Bank(Hainan Branch)has a small customer base in this regard.At the end of 2020,the bank had slightly over 200,000 active credit cardholders,which was far fewer than the other five major state-owned banks,and even fewer than joint-stock banks such as China Everbright Bank,China Merchants Bank,and China CITIC Bank.The penetration of YC Bank(Hainan Branch)in the credit card market is less than 3%,with limited market influence.Moving forward,YC Bank(Hainan Branch)needs to widen channels for customer acquisition,strengthen market competitiveness,and expand its market share.This paper delves into the credit card business of YC Bank(Hainan Branch).First,the situation of its credit card business is analyzed,including its credit card issuance scale and card usage.It is found that its credit card business has huge potential.Compared with other players in the province,the bank’s credit card issuance scale is much smaller,leading to a low market share.According to the analysis of the status quo of its credit card marketing,problems are spotted in terms of products,channels,prices,promotion,among others,which requires relevant measures to be taken.Second,the paper examines the strengths and weaknesses of YC Bank(Hainan Branch),especially the challenges and opportunities it will face in the context of building the Hainan FTP.Only by seizing the opportunities can the bank benefit from the various favorable policies.Finally,based on the TP theory,targeted marketing strategies are proposed for the credit card business of the bank from four aspects:product,promotion,price,and measure.Following the proposed suggestions,the bank will enhance its credit card business on a proper marketing path,thus achieving rapid credit card growth.