App consolidation sweeps banking sector as lenders streamline digital services

by JIANG Yiman

A surge of discussion swept Chinese social media on Monday after "banking app shutdown wave" trended on Weibo. The shutdown reflects what analysts describe as a new phase of digital decluttering, with banks abandoning underused applications amid mounting compliance and cost pressures.

Bank of China recently announced it will gradually phase out its BoC Life credit card app, integrating all its functions into the main Bank of China app—becoming the first state-owned lender to shutter a standalone credit card app. Other lenders, including Beijing Rural Commercial Bank and Bank of Bohai, have taken similar steps since late 2023, migrating card-related services into their principal mobile banking apps.

At least 10 regional and city banks removed independent credit card apps in 2024, with another six—among them Jiangxi Bank and Sichuan Rural Credit Union—doing so in the first 10 months of 2025. The trend has also extended to direct banking apps, which began disappearing even earlier. Since 2023, at least 21 banks have closed such platforms.

Industry experts say standalone apps once helped banks attract users and boost activity data, but most failed to retain engagement. Many of these apps were downloaded once and rarely opened again. As competition shifts from expansion to retention, redundant apps have become liabilities—creating fragmented data systems, privacy risks, and rising maintenance costs.

The wave also underscores deeper challenges in the credit card business. With structural economic adjustments and softer household spending, the sector has entered a contraction cycle marked by shrinking issuance and lower transaction activity.

According to the People's Bank of China, the total number of combined credit and quasi-credit cards fell to 715 million in the second quarter of 2025—down by 6 million from the previous quarter and 12 million from the end of 2024, and 11.4% below the 2022 mid-year peak of 807 million.

By the end of 2024, total bank card credit lines stood at 22.9 trillion yuan, up about 1%, while outstanding balances edged up 0.25% to 8.71 trillion yuan. The average credit limit per card was 31,400 yuan, with utilization at 38.03%, extending an 11‑quarter downtrend.