Clarification: This "State-Owned Bank Shutting Down Credit Card App" is Not the "First"

Recently, a wave of discussion emerged online regarding Bank Of China Limited's official announcement to shut down its "Colorful Life" credit card app by the end of June. Various interpretations surfaced, with the most common being the labeling of this shutdown as the "first among major state-owned banks." However, this characterization is incorrect.

Bank Of China Limited issued a notice last September stating it would halt new registrations for the "Colorful Life" credit card app, gradually phase it out, and migrate all its functions and services to the main "Bank of China App." New user registration and card binding functions were stopped at the end of March, with an official announcement on May 13 confirming the full shutdown by June's end.

While many online sources uniformly described this as the "first shutdown among state-owned banks," this is a misconception. The actual first credit card app to be shut down by a state-owned bank was China Construction Bank's "Palm Dragon Card" app, which was discontinued around 2017 and migrated into the main CCB App. Traces of this earlier shutdown can still be found online.

Among the six major state-owned banks, China Construction Bank and Agricultural Bank of China do not operate standalone credit card apps. Following Bank Of China Limited's move, apps from Industrial and Commercial Bank of China, Bank of Communications, and Postal Savings Bank of China remain operational. The label "first among state-owned banks" is therefore based on misinformation.

Credit card apps are essentially "non-essential." With the rise of the mobile internet around 2010 and to adapt to digital trends, major banks launched credit card apps. A wave of apps, exemplified by China Merchants Bank's "Palm Life," emerged to extend user services, facilitating the shift of credit card service systems from PCs to mobile devices.

During the growth phase, these apps allowed users to apply for cards anytime, anywhere, and enhanced user stickiness through offered services and benefits. Undoubtedly, they played a role in establishing mobile systems for credit card businesses.

However, as mobile applications, credit card apps are evaluated on metrics like downloads, daily/monthly active users, and usage frequency/duration. Since they focus solely on credit card services, and user needs typically revolve around checking statements, making payments, applying for installments, checking points, and security features—functions not required daily—usage is often sporadic.

This inherent nature means credit card apps cannot achieve the constant engagement of apps like WeChat or Douyin. It's hard to imagine users frequently opening a finance-focused credit card app without a specific need. In contrast, mobile banking apps are essential financial tools that banks must provide, representing a core need for depositors.

Statistics show that among 18 state-owned/joint-stock banks, 11 offer independently operated credit card apps, while 8 out of city/commercial rural banks do the same.

As the credit card industry shifts from growth to managing existing customers, the market has changed significantly. Last weekend, the central bank disclosed the Q1 2026 payment system report, showing the number of active credit cards decreased by 9 million from the end of 2025. Over three years, the total reduction reached 120 million cards, with no signs of this trend slowing. Concurrently, credit card business metrics for major banks declined across the board in 2025.

As financial mobile applications, credit card apps are not merely software projects. They require a full suite of development, testing, daily maintenance, and financial-grade cybersecurity protection, each step involving significant investment. With the overall downturn in credit card business, the operational costs of these apps have become a burden.

In this context, integrating credit card apps into mobile banking apps has become an irreversible choice. This is not just a strategic simplification for banks but also an adjustment in operational philosophy. After transitioning to a focus on existing customers, banks have already reallocated limited resources towards high-value customer groups by extensively adjusting user benefits.

Credit card apps face a similar fate. From the banks' perspective, there is a need to concentrate more resources on developing the mobile banking app into a powerful, all-encompassing "super portal," enhancing its ecosystem and user experience.

When various media analyzed the removal of Bank Of China Limited's credit card app, their perspectives varied widely. In reality, shutting down the app only removes a single service entry point, not the "services themselves." All functions of the "Colorful Life" app have been migrated to the "Bank of China App." Users can now handle deposits, withdrawals, wealth management, and all credit card services through a single application.

Given the limited space on users' phone screens and the overwhelming number of available apps—which can lead to confusion and a fragmented experience—this adjustment to credit card apps represents a strategic evolution. The focus is shifting from "pursuing numerous, comprehensive functions" to "emphasizing refined operations and professional services."

Looking ahead, aside from some top-tier banks that may continue offering standalone credit card apps, most banks will likely consider retaining only one mobile banking app. This app would integrate diverse functions including deposits, loans, credit cards, wealth management, bill payments, and even some government services.

Meanwhile, a large number of high-frequency, lightweight service scenarios could be directly accessed through platforms like WeChat Mini Programs or UnionPay QuickPass. The trend may be moving away from requiring users to download a dedicated credit card app, towards "appearing right when the user needs it."

These are the insights gained from observing Bank Of China Limited's adjustment to its credit card app strategy.