On June 7, Bank of Communications announced on its official website that in order to further improve its account services, it will concentrate on clearing unit debit cards, and existing accounts will be transferred for balance and cancelled. Customers who have further card needs can apply for a unit settlement card at the Bank of Communications branch. Industry insiders believe that this move can be seen as clearing some bank businesses that already have better alternatives and is conducive to cost savings.
In any industry, there is no exception to the survival of the fittest between new and old business.
On June 7th, Bank of Communications stated on its official website that in order to further improve the account service level, it will concentrate on clearing the unit debit cards, and the existing accounts will transfer the balance and cancel the card.
The announcement shows that starting from June 24, 2024, Bank of Communications will concentrate on the balance transfer and cancellation of unit debit cards. If customers have further card usage needs, they can apply for a unit settlement card at Bank of Communications outlets.
Bank of Communications further stated that "if you have a corporate account at Bank of Communications, the remaining balance (if any) of the unit debit card will be transferred to the corporate account (default priority to the basic account, if there is no basic account, it will be transferred to the newly opened general account); if you do not have a corporate account at Bank of Communications, after you bring the valid identity certificate of the cardholder, the business authorization letter for enterprise transfer with the business license and official seal to the Bank of Communications outlet to handle the transfer business, our bank will transfer the balance according to your instructions to the designated account, only support transfer to the collection account of unit settlement card of the same unit in this bank or other banks."
An employee from a state-owned bank explained to Cailian Press that unit debit cards and unit settlement cards have many similarities and belong to public business targeting enterprises, institutions and other groups.
Simply put, the history of unit debit cards is relatively long and has functions such as transfer settlement, consumption, and inquiry, but sub-accounts cannot be opened. The functions of unit settlement cards are more comprehensive and are suitable for users who have opened unit settlement accounts. They can set up main cards and sub-cards. Generally, they have investment and financial management functions. They support cash withdrawals, transfers, and inquiries through channels such as counters and self-service terminals. They also have multiple security authentication methods.
Cailian Press found that in May 2014, China UnionPay officially launched unit settlement cards in Beijing. UnionPay stated that unit settlement cards are innovative debit card products launched to enhance payment and settlement convenience for enterprise customers. They are issued to corporate customers and support multiple account management. Corporate customers can handle payment and settlement services around the clock through all channels of the domestic UnionPay network, greatly improving the efficiency of corporate fund settlement and financial management, as well as promoting the integration of commercial bank corporate and retail business resources.
In response, a macro analyst from a brokerage told Cailian Press that Bank of Communications' clearing of unit debit cards can be regarded as cleaning up some bank businesses that already have better alternatives, which is conducive to cost-saving.
Cailian Press found that there is no other state-owned bank issuing information on the clearance of unit debit cards recently.