The basic function of a credit card —— the credit limit —— is a key service feature that credit card customers pay close attention to. What if the limit is insufficient? How can one apply for a limit increase? What is the difference between a temporary limit and a fixed limit? Such limit-related issues have an extremely important impact on customer service experience, the transaction volume of credit cards, as well as the operational and profitability performance of credit cards.
      In recent years, the Credit Card Center of Industrial Bank has placed great emphasis on the planning and implementation of quota management strategies. It has introduced emerging technologies such as big data, AI-driven decision-making, and internet technologies into quota management and operations, achieving remarkable results. As a result, the comprehensive operational capabilities of Industrial Bank's credit card customers have significantly improved.
  Efficiency first, enhancing the level of quota services
      For any customer seeking a limit adjustment, their expectations for quota services generally boil down to the following: fast, sufficient, and satisfying.
      Fast —— means providing timely quota services to customers; sufficient —— means offering an ample credit limit to meet customers’ normal consumption needs; satisfying —— means ensuring a good experience through user-friendly quota service channels. Based on these enhancement goals for service experience, Industrial Bank has focused its efforts on the following aspects to improve the level of quota services:
      In terms of channel development, by expanding self-service functions for applying for limit adjustments via mobile terminals such as WeChat and mobile banking, the convenience of applying for limit increases has been brought right to customers’ fingertips; in terms of the form of limit adjustments, by allowing customers to receive limit increases in the form of “limit red packets,” the process gives customers the thrill of “opening a red packet”; in terms of system architecture, by building an efficiently operating account decision-making system to promptly process customers’ applications for limit increases; in terms of organizational support, by establishing a quota management team that proactively raises limits for customers who meet risk criteria and require adjustments, thereby shortening the cycle time for fixed limit increases through process optimization and resource integration. This has reduced the execution period of single-batch limit adjustment projects by nearly 60%, effectively improving the efficiency of limit adjustments; in terms of quota strategy, based on assessments of customer risk and card usage habits, customers with higher consumption needs may be granted larger limit increases, ensuring that high-quality customers have sufficient available credit.
       According to Industrial Bank, from January to October 2018, quota services had been provided to approximately 15% of existing customers, which is six times the level during the same period last year. The improvement in limit adjustment efficiency has directly led to increased customer satisfaction with card usage and a reduction in transaction failure rates. According to data from the “Mastercard Authorization Report June 2018,” Industrial Bank’s credit cards ranked third in cross-border transaction success rate among industry peers.
  Precise management, identifying the right targets for quota services
       As a form of small loan service offered by banks, credit card limits also come with certain costs. Should every customer requesting a limit increase be granted one indiscriminately? The answer is no. Providing quota services to customers requires not only pre-assessment but also tailored solutions, adhering to the principle of providing just enough credit. For example, adopting a quota control strategy for customers with lower limit needs can reduce the risk of fraud or unauthorized use. So how does the Credit Card Center of Industrial Bank approach these limit adjustment principles?
       First is the summary of historical experience. By analyzing customers with a history of limit adjustments, providing limit increases to those with potential needs results in higher responsiveness and better outcomes. For customers with relatively low credit demand, efforts are made to guide them toward controlling their limits through marketing initiatives such as “safe limits.” For customers deemed higher risk by the bank or those showing suspected cash-out behavior, measures are taken to forcibly reduce their limits, thereby effectively safeguarding the bank’s asset security.
       It is worth mentioning that Industrial Bank has introduced a customer segmentation mechanism, and further established data models such as total consumption amount and limit elasticity to accurately map out the marginal benefits of customer limit adjustments. Through continuous testing, multiple iterations, and optimizations, the bank has identified optimal strategies for selecting adjustment targets and determining appropriate adjustment amounts.
  Marketing synergy, creating business opportunities in quota management
      When providing limit adjustment services to customers, Industrial Bank fully leverages communication opportunities with customers to create new marketing scenarios, even using limit adjustments as rewards for meeting certain marketing criteria. In doing so, the bank has discovered new business opportunities and continuously carried out corresponding initiatives:
      After a limit adjustment is completed, customers are promptly informed about Industrial Bank’s latest marketing campaigns, ensuring that every customer whose limit has been raised is kept up to date with promotional information, further strengthening their willingness to use the card. When customers apply for installment services, the bank proactively assists them in applying for a limit increase, thereby boosting their willingness to opt for installments. For customers receiving batch temporary limit increases, a mechanism is applied whereby “qualifying transactions” can be converted into permanent limits, encouraging customers to actively utilize their temporary limits and make more purchases.
       Through improving the efficiency of quota management and strengthening refined management methods, the Credit Card Center of Industrial Bank has achieved significant results in pursuing the endogenous development of credit card operations, and its accomplishments are remarkable. As of the end of October 2018, Industrial Bank had issued over 40 million credit cards cumulatively, with 9.62 million new cards issued between January and October, a year-on-year increase of 23.9%. The cumulative transaction volume reached 1.2263 trillion yuan, up 58% year-on-year. The effective implementation of Industrial Bank’s quota management strategy has driven a steady improvement in the overall operational capability of its credit card business.