Although the co-branded card has the advantage of cross-selling, due to its own product characteristics and the limitations of its development stage, there are still many problems.

1. Banks tend to cooperate with national enterprises and chain industries, and homogeneity is serious

At present, domestic issuing banks issue co-branded cards tend to choose national enterprises and chain industries, over-emphasizing the scale of customers of cooperative enterprises, and the intention of staking enclosures is very obvious, resulting in serious homogeneity of joint cards, which is more serious among cardholders. There are many gaps in the areas of high consumer demand and local characteristics.

2. Single partner business, high commercial risk

Co-branded cards generally take the form of co-branding between the issuing bank and a single merchant. On the one hand, the circulation cannot be compared with ordinary credit cards. On the other hand, if the co-operative merchants choose to make mistakes, it may result in high issuance cost of the co-branded cards and low card-sending rate, making it difficult for issuing banks. gained profit.

From the perspective of co-branded cardholders, the disadvantages of a single cooperation method are also obvious. For example, if you want to enjoy the benefits of several merchants, you must deal with different joint cards separately, resulting in waste of resources and failing to achieve the purpose of “one card at most,” instead increasing the burden on cardholders and limiting their choice of products. And get service space.

3. Radical and profit-sharing profits are difficult to achieve sustainable development

In order to maintain market share in the competition for homogenization, some card issuing banks have significantly increased their service content and adopted aggressive concessions to achieve the purpose of retaining customers. This actually dilutes the profits of card issuing banks and joint-name units, making it difficult to achieve long-term business objectives. .