The competition for social security card customers has intensified as the second half of the game unfolds. Since the national promotion of the third-generation social security card began in 2021, banks from state-owned to urban and rural commercial banks have launched a full-scale competition to open accounts, securing customers through various means such as appointments, discounts, and gifting rights.
The intention behind the banks’ self-funded subsidies is to acquire low-cost liability funds and expand business scenarios through the entry point of people’s livelihoods. The smoke from four years ago has not dissipated even by 2025. In May of this year, the Beijing Municipal Human Resources and Social Security Bureau initiated the third batch of centralized card replacement for the third-generation social security card, targeting insured units in Dongcheng District, Chaoyang District, Mentougou District, and Miyun District, involving more than 3 million working staff; almost simultaneously, several banks represented by the Beijing branches of the six major banks, including Industrial and Commercial Bank, Agricultural Bank, Bank of China, Construction Bank, Bank of Communications, and Postal Savings Bank, all issued card replacement guidelines, attracting customers with rich rights such as fee reductions, physical prizes, and lotteries. Compared to the heated situation in Beijing, the competition for card replacement in other regions that started earlier has evolved into a normalized, smokeless war. On one hand, the six major banks, with their branch layout and resource advantages, occupy a core position in the issuance of social security cards. Xingye Research Think Tank points out that to promote the marketing and promotion of social security cards and other investments with a significant output cycle exceeding the assessment cycle of branches and their heads, many banks have mobilized special funds from the headquarters. The think tank selected 12 cities with a permanent population of more than 10 million and an urban population exceeding 6 million, finding that 10 cities cooperated with the six major banks, and 5 or more cooperated with banks such as China Merchants Bank, Everbright Bank, CITIC Bank, Shanghai Pudong Development Bank, and Guangfa Bank. By the end of 2024, the number of social security card holders in China reached 1. 389 billion; among the disclosed data of the major banks, the effective card volume of Agricultural Bank, Bank of China, and Construction Bank was about 565 million, accounting for about 40%. On the other hand, local banks have also formed barriers in the regional market. For example, urban and rural commercial banks have established advantages in county and urban segmented markets through ‘local service + policy inclination’. Loudi Rural Commercial Bank’s market share in local social security cards reaches 70%, and Xinhua Rural Commercial Bank’s card issuance volume ranks first among local cooperative banks. At present, the competition for the third-generation social security card is crucial: in addition to obtaining long-term, low-cost funds, the third-generation social security card, which connects more financial services such as digital currency, may become an entry point for credit cards, wealth management, and other products, bringing more imagination space for retail business. By the end of October 2024, the cumulative number of third-generation social security card holders reached 487 million, accounting for about 35%; and the Ministry of Human Resources and Social Security has clearly proposed to basically achieve a ‘national one-card’ for social security card resident services by 2027.This implies that in the next one and a half years, various industries will need to employ their unique strategies to capture approximately 60% of the market share. “Now, social security cards are no longer a short-term requirement,” stated an employee of a state-owned major bank’s South China branch. “Social security cards, enterprise occupational annuities, and individual pension targets are all included in the performance assessment of retirement finance.
They are policy demands and also the banks’ own needs.” A responsible person from a state-owned major bank’s South China branch indicated that with most social security cards in the area having already been updated, “the social security card business is becoming increasingly difficult, but it remains a very important and popular business.” Risk warning and disclaimer: The market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and has not taken into account individual users’ specific investment goals, financial conditions, or needs. Users should consider whether any opinions, views, or conclusions in this article match their particular circumstances. Responsibility for investment decisions based on this article lies with the individual.
