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For giants like Ping An Bank, CITIC Bank, and Industrial & Commercial Bank of China (ICBC), the pressure is mounting. A combination of factors has resulted in a decline in credit card transaction volumes and associated fees. While mortgage lending continues to see growth in overall volume, its quality is increasingly questionable. Rising delinquencies and non-performing loans have cast a long shadow over this crucial segment.

Banks are forced to adapt, shifting gears to navigate the turbulent waters of retail business. The "three highs" strategy—a reliance on high interest rates on loans, high-risk practices, and competitive deposit offerings—is being replaced with more sustainable models. The push for quality credit growth is gaining momentum.

Ping An Bank has pledged to prioritize individual customers over mass market segments. They're adopting a new direction by reducing interest rates on savings accounts and prioritizing customer experiences. Meanwhile, CITIC Bank emphasizes building robust lending frameworks that focus on high-quality borrowers and bolstering their existing loan origination capabilities. ICBC seeks to increase their engagement with the middle class through targeted campaigns and initiatives aimed at boosting customer loyalty.

Even as they navigate these challenges, banks are keenly aware of the potential pitfalls. The risk of increased delinquencies and non-performing loans looms large, casting a shadow on the future. Navigating this tightrope walk requires a combination of prudent credit management, effective marketing strategies, and astute financial planning.

In the coming months, the success of these strategies will be closely watched as banks strive to strike a balance between growth and risk management in the ever-evolving world of retail lending.