The 2.68% Flash Loan coupon has been issued. This is the third time Xiaochen has received a consumer loan marketing message from China Merchants Bank this year. In April last year, the interest rate of this consumer loan product was still in the "3" range, and in less than a year, the interest rate has decreased by more than 50 basis points. This is a microcosm of the increasingly fierce competition in the consumer loan market. Under the business strategy of promoting retail transformation and the policy orientation of promoting financial consumption, consumer loans, as a "small-scale decentralized" business, have become one of the goals of many banks' incremental markets. The interviewee believes that while the consumer loan business is experiencing growth opportunities, banks and other institutions should continue to optimize the supply and service experience of consumer loan products, while paying attention to risk management behind business growth. From the current perspective, nationwide joint-stock banks with strong retail business are the main participants in the competition of the consumer loan market. For example, the latest marketing information from China Merchants Bank shows that the bank's online loan product "Flash Loan" offers a preferential annualized interest rate (single interest, the same below) starting from 2.78% for new customers, and the promotion period is in March. At the same time, some customers of the bank who apply for "lightning loans" can have an annualized interest rate as low as 2.68%. The interest rate has significantly decreased compared to the previous "three letter head". Pudong Development Bank's online credit consumer loan "Pudong Flash Loan" focuses on marketing with interest rate coupons, interest deduction coupons, a maximum term of 5 years, and a maximum limit of 1 million yuan. According to the marketing information released by the bank, from January 1st to March 31st, during the "good start" period, the bank launched various equity activities such as the "Pu Shandai" new customer building amount redemption gift, 2.88% interest rate coupon, and 50 yuan deduction coupon (which can be used to offset loan interest). At the same time, many city commercial banks and rural commercial banks are actively participating in the consumer loan market. On March 8, the marketing information released by the Bank of Jiangsu's WeChat official account showed that new customers of its consumer loan products could enjoy preferential annual interest rates starting from 2.58% for a limited period of time. The approved amount could be up to 1 million yuan, and the loan term could be up to three years. It is reported that the related products have the characteristics of online application, real-time approval, and on-demand borrowing. Another rural commercial bank has launched a consumer loan for public officials with an annual interest rate as low as 2.80%. Overall, highlighting low interest rates, high credit limits, and long maturities is the main customer acquisition strategy for banks. A bank credit officer told Securities Daily reporters that the final approved loan interest rate, term, and amount may vary among different customers due to differences in qualifications and other factors. Banks are making efforts in consumer loan marketing. On the one hand, they are actively using financial policies to promote consumption, and on the other hand, they are seizing opportunities to release domestic consumption momentum and expand business growth. Previously, the People's Bank of China issued the Report on the Implementation of China's Monetary Policy in the Fourth Quarter of 2024, which mentioned that we should continue to do a good job in the "five major articles" of finance and further increase financial support for scientific and technological innovation and consumption promotion. In fact, banks' efforts to provide consumer loans not only reflect their strategic choices in response to short-term market changes, but also reflect the deep challenges of the industry's long-term development. Xue Hongyan, a special researcher at Su Shang Bank, told reporters that "we are currently in the peak season of credit investment in the first quarter, and with the expectation of interest rate cuts for the whole year still in place, banks are accelerating their lending pace before the interest rate reduction, which can lock in high-quality customers and asset returns in advance to cope with the impact of narrowing interest margins on profits in the future. At the same time, the banking industry is still facing a clear shortage of high-quality assets. Consumer loans, due to their small amount of diversification and relatively controllable risks, are an important lever for banks to fill the asset gap." Du Yang, a researcher at the China Banking Research Institute, believes that compared to corporate loans, consumer loans, especially short-term consumer loans, usually have lower risk weights and occupy less capital of banks, which can improve capital utilization efficiency and achieve greater efficiency under capital constraints. High returns; Meanwhile, consumer loan business is often closely related to banks' retail businesses such as credit cards, payments, and wealth management, which can increase customer stickiness, drive cross selling, and improve comprehensive financial service revenue. Industry insiders believe that relying solely on homogeneous competition of "low interest rates+high credit limits" is difficult to form customer stickiness in optimizing products and services. Once the discount ends, some borrowers may turn to other banks, making it difficult to convert marketing investment into long-term value. Therefore, banks and other financial institutions need to optimize their products and services from multiple aspects. Du Yang stated that in order to promote financial consumption and achieve business growth, banks and other financial institutions should make efforts in promoting product innovation, strengthening digital construction, enhancing risk management capabilities, and strengthening brand building. Specifically, one is to expand the boundaries of consumer finance business. Banks need to have a deep understanding of customer needs, create user profiles, and meet the needs of different types of customers. The second is to accelerate the digital transformation of consumer finance. Improve the quality and efficiency of customer communication, simplify business processing procedures, and continuously enhance the experience of consumer finance services. The third is to strictly control consumer finance risks. Establish a sound risk warning system and risk constraint mechanism, prioritize customers, closely monitor market changes related to lenders, manage and review customer qualifications before loans, monitor loan flow during loans, and conduct regular follow-up research after loans. The future breakthrough direction of bank consumer loans needs to shift from 'price competition' to 'value cultivation'. Firstly, scene embedding is the key to breaking the deadlock. The essence of consumer loans is to serve specific consumer behavior. Banks should break away from the logic of simple lending and actively connect with consumer trends and scenarios; Secondly, carry out customer segmentation and regional sinking, develop targeted products for different customer groups, and enhance differentiated competitiveness; Finally, we will continue to focus on financial technology to improve risk control while optimizing user experience. The ultimate goal is to integrate consumer loans into the physical consumption chain and achieve a transformation from scale expansion to quality and efficiency improvement through a differentiated service system Xue Hongyan stated. (New Society)