(Yicai) Feb. 20 -- The number of credit cards in use in China tumbled 10 percent at the end of 2024 from the end of 2022, when the government tightened credit card regulations to rein in consumer risk. The credit card business has also entered a more competitive phase, and many banks have closed down their credit card branches to save costs, industry insiders told Yicai.

There were 727 million credit cards in use in China as of December 2024, a drop of 80 million cards from two years earlier, according to official data. The number has declined for nine consecutive quarters.

Banks are changing their strategy from fast expansion to better serving existing customers. Bank of Communications, a large state-owned bank, has shut its four credit card branches in Guiyang, Nanchang, Shenzhen and Lanzhou since the beginning of the year.

Now that it has closed these branches, the bank will carry out marketing and operations using digital methods to save costs and boost efficiency in its credit card segment, said Dong Zheng, a senior credit card salesperson.

In the past, banks would issue a wide variety of credit cards, including fuel cards, airline cards and co-branded cards. This meant that many people would hold multiple types of credit cards from one bank, an employee at an urban commercial bank told Yicai.

“Since the government rolled out tighter regulations in 2022, most banks stipulate that a customer shall not have more than six credit cards,” the person said. “Banks have also cleaned up dormant credit cards that have been inactive for more than 18 consecutive months and have no overdraft balances or overpayments.”

Also, since last year, Minsheng Bank, Shanghai Pudong Development Bank, Huaxia Bank and China CITIC Bank have reduced the benefits on their credit cards, such as by cutting or cancelling the redemption of points on transportation, airport lounge services and consumer discounts.

Editor: Kim Taylor