Financial Services Association, September 11 (Reporter Cao Yunyi) Recently, Shanghai announced that it will step up efforts to promote trade-in of consumer goods, with consumer subsidy funds as high as 4 billion yuan. On the basis of government subsidies, a number of financial institutions have once again increased their concessions and launched activities such as trade-in vouchers and spending discounts. In response to car replacements, banks are also introducing initiatives such as issuing interest-free vouchers to give interest concessions on loans and introducing direct passenger car installment products exclusive to low-term trade-in credit cards.

With the recent official launch of the Shanghai Home Appliance and Home Consumption Subsidy Campaign, the Shanghai Municipal Commission of Commerce said that consumers in Shanghai can receive 8 types of home appliance vouchers in the Cloud QuickPass App Policy Implementation Zone. Each category includes 1 and 1 Level 2 energy efficiency discount voucher. The subsidy campaign ends on December 31. Starting September 15, consumers will also be able to collect it on Alipay and WeChat apps.

A Financial Services Association reporter learned that on the basis of subsidies at the national and Shanghai levels, China UnionPay also provides consumers with an additional promotion of 5,000 yuan to enjoy a 50 yuan phone bill red envelope. In the future, commercial banks will also use the “multi-voucher superposition” tool within the Cloud QuickPass app to help consumers shop and spend green.

For example, the Bank of Shanghai recently announced that it and UnionPay have launched a trade-in campaign to issue vouchers. On top of government vouchers, they will increase the Bank of Shanghai's exclusive vouchers for household appliances and carry out activities such as immediate consumption reduction. Furthermore, since September 10, the Bank of Shanghai officially launched the “Consumption Renewal Season” series of activities and launched a total of 9 initiatives, including measures such as granting interest concessions to customers who have successfully applied for credit consumer loans to buy home appliances, household goods, car replacement or home decoration by issuing interest-free vouchers, and introducing direct customer car installment products exclusive to low-term trade-in credit cards. According to the Bank of Shanghai, Credit Loans, which originally had an interest rate of 3.2%, can enjoy a minimum interest rate of 2.98% after receiving the vouchers.

In terms of consumer promotion, the Shanghai branches of several banks have launched credit card activities for daily consumption, people's livelihood, etc. For example, Tyrone Bank Shanghai Branch and Family Convenience Stores jointly issue “Collective Alliance” credit cards. The bank's credit card also launched a full reduction campaign with Minsheng Software such as Ruixing, CNPC, 12306, and Flying Pig to jointly provide residents with consumer discounts. In addition, Tyrone Bank collaborated with restaurant merchants to carry out a number of full reduction activities; a full property fee reduction project to provide discounts for residents of the community to pay property fees, etc.; Bank of Ningbo Shanghai Branch and Jiading Town Street launched the “Lianqi” co-branded card to provide benefits packages in various areas such as catering, health, education, and entertainment.

In response to demand such as new energy vehicle loan investment and used car trade-in, the Shanghai branches of several banks have also introduced preferential policies. The Financial Services Association reporter learned from the Shanghai branch of the Bank of China that in order to cooperate with the trade-in subsidy activities of the national and Shanghai government, the bank cooperated with various automobile, home improvement dealers or brands such as Yongda Group, FAW, Audi, Porsche, Jiyue, Zhizhi, Ideal, Shang Zhe, and Shengdu Decoration to launch trade-in financial consumption policies and products through offline test drives and diversified methods such as entering park enterprises.

“We are introducing faster and more convenient business processes and policies for installment customers with replacement needs for automobiles, home improvement, etc., including optimizing the internal application acceptance process, and introducing online tool support during the business processing process to promote more high-quality durable consumer goods into residents' lives. “A relevant person from the Shanghai branch of the Bank of China told the Financial Federation.

A relevant source from the Bank of Shanghai said that the bank's new energy vehicle companies within the United Nations have launched auto loan and credit card installment products with special interest rate discounts, collaborating with the new energy conversion process of traditional fuel vehicle companies' products, improving product policies, optimizing services, increasing interest rate preferential margins for high-quality customers, and increasing financial penetration. The second is to increase the supply of credit for high-quality used cars, support exclusive financing plans, and support the full upgrading of residents' travel tools for trade-in.

“Automobiles are a major consumer, which is clearly driving the (bank) credit business. Overall, the risk/benefit ratio of the automobile consumer loan business is also favored by banks and other institutions.” Zhou Maohua, a financial researcher at Everbright Bank, said that boosting auto finance can also help banks acquire customers and actively expand other financial service businesses through the car loan business.

Su Xiaorui, a senior researcher at Suxi Zhi Research, told CFA reporters that under the impetus of the policy, a large number of demand for “trade-in” will emerge. The three major consumption scenarios will focus on deployment, namely carrying out car trade-in, promoting the trade-in of home appliances, and promoting the “renewal” of home furnishings, kitchen and bathroom.

“This consumer renewal is based on the above background. It not only fully responds to the policy, but also provides real discounts to consumers with renewal needs. It is conducive to promoting consumption upgrades while further expanding the scale of consumption in shopping malls, business districts, etc., and providing strong support for the healthy development of the real economy.” Su Xiaorui said.