bank consumer loans dropped to "1 digit"
2024-09-13
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since september, consumer demand has increased during the mid-autumn festival and national day holidays, and many banks have launched a new round of consumer loan interest rate discounts. some banks' consumer loan interest rates have dropped to below 3%, entering the "2-digit" range, and some banks have even dropped to the "1-digit" range.
the official account of jiangsu bank suzhou branch recently published an article saying that "jiangsu bank's consumer loan interest rates are greatly reduced". if you use jiangsu bank's consumer loans from august 29 to september 30, you will have the opportunity to enjoy a discount of up to 30 days, calculated at an annualized interest rate of 1.88%.
"the 1.88% interest rate is only available to white-listed customers, and generally has certain requirements for the customer's occupation. currently, the consumer loan interest rate for general customers who are not on the white list is generally around 2.38%." jiangsu bank's telephone customer service staff told the financial times reporter.
"the reduction in interest rates on consumer loans is a marketing strategy adopted by banking institutions to stimulate consumption, support economic growth, respond to policy calls and meet their own business needs. in actual operations, such low-interest consumer loans are usually temporary discounts for specific customer groups, such as employees of high-quality companies or formal employees of civil servants, public institutions, etc., and may need to meet certain conditions, such as paying provident funds and social security for a certain period of time," said ye yindan, a researcher at the china banking research institute, in an interview with the financial times.
in addition to some banks offering interest rates as low as 1%, many banks have recently launched a new round of consumer loan discounts, with product interest rates mostly below 3%. for example, on september 1, china merchants bank beijing branch launched a "flash loan" with an annualized interest rate as low as 2.88%, but it is only for new customers who obtained the credit limit from august to october.
it is worth noting that, judging from the interim report data disclosed by listed banks, the retail business, which is regarded as the "ballast stone" for banks to survive the cycle, is beginning to come under pressure. as credit cards bid farewell to the period of rapid growth and people's consumption habits undergo new changes, which business will become the "top stream" of bank personal loans?
according to statistics, as of the end of the first quarter of 2024, the balance of consumer loans of 21 listed banks excluding personal housing loans was 19.81 trillion yuan, a year-on-year increase of 8.7% and an increase of 37.5 billion yuan in the first quarter.
experts believe that this means, to a certain extent, that personal consumer loans are entering a golden period of growth.
of course, this is related to the increasingly powerful marketing strategies of various banks. and this competition is first reflected in the interest rate of consumer loans. in fact, as early as last year, more and more banks have launched a "consumer loan interest rate war" and quickly entered the "3" era. now, "2-digit" is not uncommon, and "1-digit" is already beckoning.
however, the operating costs and risk management behind the "price war" in consumer loan business are still factors that banks need to consider. lou feipeng, a researcher at china postal savings bank, believes that theoretically, loan interest rates can be seen as a customer screening pricing mechanism, with high-risk customers paying high interest rates and low-risk customers paying low interest rates. however, in practice, it is also easy for high-risk customers to pay low interest rates, which makes banks bear high risks while obtaining low returns.
"the decline in loan interest rates directly affects banks' interest income and puts pressure on their profitability. banks need to balance capital costs, marketing costs and the long-term, comprehensive value of their customers, and consider whether this price reduction strategy is commercially sustainable from the perspective of the overall ledger," said ye yindan.
faced with increasingly fierce competition for market share in consumer loans, what should banking institutions do?
innovation and risk control are key words commonly mentioned by experts.
ye yindan believes that in addition to lowering interest rates, banks can attract customers through product innovation, such as providing more flexible repayment methods and more diversified loan products. at the same time, banks can further improve service quality and provide more personalized and caring services to enhance customer loyalty. at the same time, banks should strengthen the credit approval process and use big data and artificial intelligence technology to improve the accuracy of risk assessment to avoid the increase in the non-performing loan rate of consumer loans.
experts remind that when choosing and using consumer loans, consumers should pay attention to ensure that the actual use of the loan applied for complies with relevant laws and regulations and bank regulations, and should not be used for non-consumption areas such as house purchase or investment. at the same time, consumers should not blindly be attracted by low interest rates and ignore their repayment ability. consumers need to reasonably assess their repayment ability based on their current and future income and expenditure to avoid affecting their daily life and other financial plans due to excessive repayment pressure.
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