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After China's entry into the WTO, China's financial market has been further opened, and the competition among customers in the financial market has been unprecedented. The quality of financial assets in domestic financial industry is generally low, and the ability to grasp customers is weak, especially the means to attract individual customers are basically passive and short-term behaviors. By virtue of its abundant financial strength, advanced technical means, mature management and flexible operating mechanism, foreign banks will have a great impact on the various businesses of state-owned commercial banks in China. As a modern and popular financial product, bank card will surely become the focus of domestic and foreign banking competition. Therefore, an objective analysis of the advantages and disadvantages of domestic and foreign competitors will help us to accurately position ourselves in the future competition, calmly respond, and keep the initiative to adapt to the impact of the wave of reform and opening up.
Based on the existing research results in recent years, this paper analyzes the present situation and existing risk problems of China's bank cards by using the methods of data and comparative analysis and the theory of economic globalization, and draws lessons from foreign successful experiences, puts forward countermeasures and finds out solutions.
First, the general theory of credit cards and the risks in their development
(A) the general theory of credit cards
1. The concept and characteristics of credit card
Bank card refers to a credit payment tool issued by domestic commercial banks (including postal financial institutions) to the society with all or part of the functions of consumer credit, transfer settlement, cash deposit and withdrawal, etc. Bank cards include credit cards and debit cards. Credit card refers to a credit payment tool provided by banks or non-bank financial institutions to their customers with the functions of consumer credit, transfer settlement and cash deposit and withdrawal. It is made of special plastic and embossed with the card number, name, expiration date and other information of the cardholder. Cardholders can use their cards to shop directly at special merchants or to deposit and withdraw money and transfer money at designated institutions and equipment.
Simply put, credit cards are universal, safe, convenient and fast, including the following three aspects:
(1) From the issuing bank's point of view, banks can use this as a means to expand store sales, provide services to cardholders, and get a certain percentage of commissions and transaction fees. If the credit card holder fails to repay on time, he can also increase certain interest income.
(2) From the customer's point of view, cardholders can get goods and services without paying cash, which avoids the inconvenience and risk of customers carrying a lot of cash, and is also very convenient and safe to go shopping and travel.
(3) From the point of view of merchants, credit cards closely link issuers, cardholders, special merchants and correspondent banks, forming a circular chain debt relationship, and the establishment and development of this relationship depends on the credit provided by each other. Commercial companies or service companies can recover the payment from the bank in time under the guarantee of bank credit, expand sales at the same time, and avoid the debt chain caused by commercial credit, so they can provide goods or services to cardholders without worries.
2. Functions and uses of credit cards
Credit cards have five basic functions, including:
(1) direct consumption function, which is the most basic function of credit card. Cardholders can use credit cards instead of cash in special merchants marked with credit cards, including shops, hotels, restaurants, entertainment places, airports, hospitals and other places.
(2) Savings deposit function: the bank will calculate the interest of deposits, imprest and other deposits in credit card accounts according to the stipulated interest rate, which is regarded as savings deposits.
(3) Usually deposit and withdrawal function, with a credit card, you can deposit and withdraw money at any bank's business office during working hours, or you can withdraw money at the ATM 24 hours a day.
(4) Transfer settlement function. With this card, the cardholder can transfer money from his own account in the banking institution, or transfer the funds from the credit card account to other accounts through ATM or telephone banking.
(5) Overdraft credit function. Cardholders can overdraw within the limit allowed by the issuing bank, but they must repay the overdraft as soon as possible.
(B) risks in the development of credit cards
"One card in hand, travel all over China", a word tells the charm of credit cards. Today, with the rapid development of society and technology, credit cards have been accepted and recognized by more and more people, and have made great progress. However, risks are always accompanied by convenience. While enjoying the convenience of credit card, people also bear the risks brought by credit card, including the following five risks:
1. Credit risk, first of all, the risk of malicious overdraft. For card-issuing banks, malicious overdraft is one of the most common credit card risks. Some cardholders maliciously overdraw, evade debts and breach contracts, which at the same time do great harm to the capital security of issuing banks. Some cardholders with ulterior motives engage in malicious overdrafts to achieve the purpose of withdrawing funds from the issuing bank, such as 1995. /kloc-more than 0/200 people were maliciously overdrawn by a bank's credit card, with an overdraft amount of more than 8.5 million yuan, resulting in direct economic losses of more than 7 million yuan. Through public security organs, courts and other departments, 56 people were traced for their unrecovered sentences; Other uses of false certificates, forged identity documents, guarantee materials, etc. Defrauding bank credit; Others use black cards and fake cards to steal bank funds. Secondly, there is the risk of cardholders' accidents. Some cardholders may be in good financial condition and have strong repayment ability when receiving their cards, but due to time or other unexpected reasons, cardholders may not be able to fulfill their obligations in the credit card business, resulting in bank losses, such as: the cardholder's death or economic deterioration, unable to repay the overdraft; Contact with the issuing bank is interrupted, and the issuing bank cannot control the use of its credit card; The unit card is due to the change of enterprise structure, enterprise closure, property freezing or litigation preservation. This illegal possession of bank credit funds constitutes the credit risk in credit card business and brings us huge economic losses.
2. Operational risks. Credit card business belongs to electronic business, which requires business personnel to carry out various operations. A little carelessness will bring great risks. First, the risk of improper operation of special merchants is mainly manifested in the cashier's failure to check the identity documents and reserved signatures according to the operating regulations, which leads to the loss of credit control; Secondly, there is the risk of bank staff making mistakes. Take the transfer as an example. If the payee enters the wrong account, the funds will be transferred to another account, and it is not so easy to transfer the money back from another account. Not long ago, it was reported by the media that a cardholder's account suddenly increased by more than 20 billion yuan. One is the misoperation of bank operators, and the other is the risk of crime, which mainly exists inside the bank. Relevant business personnel use their powers to commit crimes internally, or collude with criminals in society to commit crimes, such as forging or modifying vouchers, illegally authorizing, stealing cardholder information and punching cards. These cases are often hidden deep and the amount is huge, so they are given. It can be seen that operational risks cannot be ignored.
3. Technical risks. The hardware and system software used in China's credit card business are imported products, and the core part is mastered by foreign countries. Once there is a problem, the system will face great threats. Secondly, China's credit card business application software development basically adopts two modes: self-development and program outsourcing. Because of the high mobility of talents, both modes will undoubtedly leave security risks: developers use their full understanding of applications to destroy systems or steal bank funds for some purpose. Third, the credit card business depends on the Internet, and hacker attacks and network viruses bring technical risks to the credit card business.
4. Legal risk, that is, fraud risk. Some criminals often use other people's lost credit cards or even forged credit cards to defraud the issuing bank of funds. In fact, credit cards have always been the prey of criminals all over the world. For example, in Germany, in the late 1980s and early 1990s, credit card crimes were almost synchronized with credit card consumption. Mainly manifested in fraudulent use of lost credit cards, fraudulent use of stolen credit cards, forged purchase orders by special units, forged credit cards, etc. In the credit card business, although the "Two Highs" (the Supreme People's Procuratorate, the Supreme People's Court) and the National People's Congress have issued the notice of "Decision on Punishing Crimes of Disrupting Financial Order", due to the unclear legislation on the relationship between the responsibilities and rights of all parties in the credit card market, there are great legal risks in the credit card business, and some business regulations and operational norms cannot be followed at present.
5. Market competition risk. Credit card business attracts a large number of domestic and foreign competitors with its rich profits and broad development prospects. Institutions involved in credit card business will inevitably face the market competition risk of "survival of the fittest". For credit card institutions in China, the first thing they face is the competition from their domestic counterparts in market share, technical talents, service quality, scientific and technological content and so on. Secondly, facing the challenge of foreign banks, European and American credit card companies have advanced business philosophy and rich management experience, as well as excellent professionals and mature network technology, which have great competitive advantages. Now, China has joined the World Trade Organization. It can be predicted that the competition in China's credit card market will be unprecedented after the opening of bank retail business.
Second, the causes of credit card business risks
Credit card business risk refers to the possibility that card issuers, cardholders and special units suffer abnormal economic losses during the use of credit cards. China's credit card is essentially a quasi-credit card, that is, it must "deposit first, then consume", but at the same time it has the function of goodwill overdraft, that is, when the cardholder urgently needs money, he can apply for a credit line from the bank to solve the urgent need. Due to the wide coverage of credit cards, a little carelessness in the use process will lead to risks, which are generally caused by the following reasons:
1. The relationship between credit card business and law is complicated.
The legal relationship involved in credit card business is very complicated and sometimes changes. For example, according to the credit card regulations, the relationship between the cardholder and the issuing bank is actually a loan relationship. When the cardholder makes consumption, the issuing bank advances the money in advance, and then collects the principal and interest of the cardholder. However, due to the complexity of cardholder composition and the instability and limitation of income, the risk is greater. Therefore, if the credit card overdraft in good faith is not strictly controlled in the approval, management, collection and other links, once the cardholder can repay for free, it will cause risks or bad debts to the bank.
The cardholder didn't keep his credit card properly.
As a credit certificate issued by the bank, cardholders can directly use it to handle deposit and withdrawal or consumption transfer business. If it is improperly kept and used by criminals, it is easy to cause losses to cardholders, mainly in the following points:
(1) Careless storage, failing to separate the credit card from the identity document. Credit cards should be kept as carefully as cash and valuables, and should not be placed at will, giving thieves an opportunity. In handling the credit card business, the ID card is the certificate that the cardholder must show when withdrawing cash or transferring money, and it is also the standard for the bank to confirm the identity of the cardholder. If the cardholder only has a credit card without an ID card, the bank will not accept the business (except color photo cards). Therefore, credit cards and ID cards should be kept separately to prevent them from being lost together and being easily used by criminals.
(2) Lend or transfer credit cards at will. According to the relevant provisions of the credit card charter, the credit card can only be used by the cardholder himself, so that the issuing bank and the special unit can control the credit. However, some cardholders will lend their credit cards to others for use without authorization, which will not only bring difficulties to the credit control of issuing banks and special units, but also cause great risks to cardholders if borrowers or transferees use credit cards with ulterior motives.
(3) If passwords or documents are not kept properly, credit cards generally have ATM cash withdrawal function (except company cards), and each credit card has a specific password. Documents in credit card business are documents that record the cardholder's business and record the relevant information of the cardholder. If the cardholder's password and certificate are improperly kept and stolen by others, it will bring insecurity to the cardholder and even cause greater risks.
3. The management of card issuers is not perfect
Credit card business has high technology content, wide coverage and high risk. China's credit card business started late, and there are some shortcomings in management, which are mainly manifested in the following aspects: the quality of employees is not high, which is manifested in the lax or impossible grasp of the applicant's credit investigation and approval process, which leads to credit out of control; Merchant personnel training is not in place, resulting in the inability to handle normal business; Carelessness or internal and external collusion in authorization business leads to immeasurable risks; In business processing, there are risks caused by untimely liquidation and cross-billing, such as cross-billing in deposit and withdrawal, transfer business, and even misreading of accounting amount, which leads to the cardholder who should have the balance being unable to sign the bill, but the cardholder who has overdrawn will withdraw money as usual.
Although the existence of risks has its contingency, people can reduce the incidence of risks and reduce the losses caused by risks as long as they take various preventive measures in advance and strengthen risk management.
Third, credit card risk prevention and control.
(A) the role and significance of credit card risk management
1. The role of credit card risk management
Credit card risk management refers to a series of management work that card issuers take preventive measures against possible risks and take remedial measures after risks occur. The main functions of credit card risk management are as follows:
(1) Maintain the existence of card issuers. In order to prevent card issuers, individuals and families from suffering devastating losses due to the incident, maintaining survival has become the most basic and important goal after loss risk management. Under the sudden attack of risks and accidents, we can be fully prepared economically, materially and psychologically in order to survive when risks arise. Only by maintaining the existence of the company can there be future recovery and development. Therefore, we say that survival is the primary purpose of risk management of card issuers.
(2) Achieve stable income and sustained growth of card issuers as soon as possible. After the risk appears, through risk management, on the one hand, it can help the card issuer to resume business through economic compensation, thus ensuring the continuity of business; On the other hand, it can provide additional funds for institutions, make up for all kinds of adverse consequences caused by risk losses, and help card issuers to restore profitability before risks appear. The implementation of risk management can not only make the card issuers recover to the original operating level after the risk loss, but also urge the card issuers to take corresponding countermeasures to catch up after the damage and achieve sustained growth.
(3) Reduce anxiety and enhance cardholders' sense of security. The existence and occurrence of credit card risks will not only cause losses to card issuers, but also bring worries to cardholders, special units and payees, which seriously hinders the development of credit card business. Implementing risk management can provide people with psychological security and a relaxed environment conducive to credit card operation. Therefore, reducing people's worries about credit card risk is another important role of credit card risk management.
2. The significance of credit card risk management
It is not only necessary but also very important for the stable development of credit card business to effectively prevent the risk loss of credit card business and control the possible risks.
First of all, credit card risk management is the need to ensure the security of card issuers' funds and customers' funds, reduce the loss rate of card issuers' funds and improve operational efficiency. Only by taking effective risk prevention and control measures, strengthening risk management and plugging all kinds of loopholes can we ensure the safety of state property, enterprise property and customer property, reduce the loss rate and improve the yield.
Secondly, credit card risk management is the need to maintain the credibility of credit cards and their issuers. Only by strengthening the risk management of credit card business can we ensure the stable development of business and lay the foundation for business development.
Thirdly, credit card risk management helps to strengthen the correct concept of risk. Credit card risk may not only make the card issuer unable to recover the money, but also cause the loss of funds of other credit card special units or cardholders. There is no doubt about the degree and severity of its harm, so we should strengthen the correct risk awareness.
(B) credit card risk prevention measures
1. Accelerate the legislative process and severely crack down on credit card crimes.
65438-0999, the People's Bank of China issued the Measures for the Administration of Bank Card Business. However, when it comes to legal issues, this method has some shortcomings. Therefore, the government must speed up the process of bank card legislation and formulate supporting policies and measures to ensure the healthy and orderly development of bank card business. At the same time, financial institutions should cooperate closely with the departments of industry and commerce administration, public security and justice to crack down on various criminal activities such as counterfeiting, embezzlement, fraudulent use and extortion of bank cards, and purify the market environment of bank cards.
2. Improve technical prevention and strengthen technical management of credit cards.
(1) Increase investment in hardware. With the rapid development of information technology, the criminal means of bank cards have become increasingly sophisticated. Card issuers must keep up with the latest technology, improve the level of technical defense and increase investment in technical defense.
(2) Strengthen bank card supervision and standardize business operations. The state has issued a series of business norms and technical standards for bank card business. As the supervision department of bank card business, the People's Bank of China must supervise the card issuers to strictly implement the technical standards of bank cards, promote the networking and resource sharing of bank cards, strengthen the supervision of bank card business operation norms, and urge bank cards to operate strictly according to procedures to avoid and prevent risks brought by illegal operations.
3. Build brand, deepen reform and create a good environment for card use.
(1) Join forces to build a bank card brand. After 17 years of development, China's bank card market is still in a state of decentralized management and fragmented management. Mastercard international said: "When foreign banks enter the China market, it is most likely that they will compete with their counterparts in China in bank card business." . We should make great efforts to improve the card environment and improve the service quality. Improve service means, optimize acceptance environment, dredge service marketing channels and improve service level; Vigorously promote the special services of key customers and improve the professional level of bank card services; Establish a domestic personal credit joint credit information system to prepare for the development of credit card consumer credit. Networking has become the only way for China bank cards to avoid risks and seek development after joining WTO. Although all the card-issuing banks have participated in VISA or MASTER international organizations and attached to the name of international organizations, they have not achieved the goal of unifying merchants and internationalizing product performance. On the contrary, there is a Sanda situation of disorderly competition in the domestic market development and operation system. All walks of life are engaged in.
① Bank card:
The pursuit of small and comprehensive technical equipment, serious duplication of construction, lack of cooperation. With the popularization of "UnionPay" identification card, it has gradually realized the universal use of bank cards in 100 cities nationwide, and the "UnionPay" identification card has been fully implemented in 40 cities. Only when China's bank cards are United and strong, and create their own brands, can they be in an invincible position in international competition.
(2) Deepen the reform of bank cards and introduce market mechanism. In the past, bank cards in China belonged to traditional commercial banks. To further develop bank card business, we must deepen the reform of bank card management system and introduce market mechanism. On the basis of foreign successful experience, combined with China's reality, we will thoroughly study the reform plan of bank card management system, actively and steadily promote the intensive operation and centralized management of bank card business, and promote the development of market-oriented and professional service system.
(3) Create a credit environment and adjust the bank card structure. Developing credit cards is an effective measure to promote consumption and develop economy. The issuance and use of credit cards depend on a good social credit environment. We will truly establish the business philosophy of market-oriented, customer-centered and benefit-oriented, realize the transformation of business development mode to intensification and efficiency as soon as possible, realize the synchronous growth of business scale and economic benefits, and make all preparations to meet the challenges of foreign-funded card issuers. At present, the credit mechanism in China has not been established, and our current credit concept is single, static and quite one-sided. For example, "the economic credit rating of cadres at or above the division level in state organs, institutions, military units and institutions of higher learning or those who have deposits of more than 50,000 yuan in our bank or are guaranteed by large and medium-sized state-owned enterprises can be listed as A", which is the customer credit rating standard of most domestic banks at present, and other lower grades can be analogized. Facing the dynamic evaluation criteria that can objectively and comprehensively reflect the real credit of customers, such as transaction type, transaction frequency, repayment ability and consumption growth ability, they are ignored, especially the comprehensive credit status database of customers, which can be used as the basis for appraisers' operation, is almost blank, which greatly limits the bank's risk control ability and credit grasp degree to customers. It is difficult to grasp the evaluation standard of customer credit rating. In order to change this situation and adjust the structure of bank cards in China, we must strengthen the construction of social credit system and create a good credit environment. With a good credit environment, banks can increase credit and promote the rapid development of credit card business. The reason why foreign banks can accurately judge the credit degree of each customer and avoid risks in the vast sea of people, provide them with targeted service varieties and methods, and then choose to master excellent customer groups depends on the long-term and extensive accumulation of customer credit status databases.
Credit card business has become an increasingly important way because of its advantages of more flexible and convenient transactions. China's bank card industry is in the ascendant, with broad development space. At present, domestic commercial banks have gradually realized the necessity of reform and embarked on the road of joint development. Credit card business is a typical retail financial business with great profits and risks. Therefore, we must identify the risk points in the development of credit cards and prevent, control and clear them. We must have enough service outlets, machines and terminals to meet the needs of customers. These electronic machines and tools are the most important carriers of credit card business channels. Therefore, it is the most important for all card issuers to broaden the channels of use, enjoy service terminals and effectively guard against credit card business risks. In March 2002, the establishment of China UnionPay Co., Ltd. effectively promoted the process of universal networking of bank cards of commercial banks nationwide, and laid a solid foundation for the development and growth of China's bank card industry and the challenge of foreign banks.
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