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November 30, 2023

“Total relationship banking" — a way for banks to connect their disparate business lines — is key to customer lifetime value. It is especially important in China, where unbanked people are becoming fewer and banks are competing in a “retention” economy.

A retention economy occurs when the addressable market has been largely captured. The best way to thrive is to increase customer lifetime value through meaningful customer engagement. China is known for its “super apps” and “lifestyle ecosystems,” but how should banks meaningfully engage customers when financial products are mostly low frequency?

In partnership with Harvard Business Review China, this report includes an extensive survey of customers and executives in the banking industry, and interviews three presidents of credit card departments in China and the division president of Mastercard Greater China.

In this report, we delve into:

  • The results of our customer survey on the opportunities of total relationship banking

  • Challenges for banks when executing total relationship banking

  • How banks can tackle challenges and thrive in a retention economy

  • The outlook for future customer engagement strategies

Raj Seshadri, president of Mastercard Data & Services, and Lynn Wang, Vice President at Mastercard, discuss the challenges and opportunities of China’s “retention” economy and potential solutions based on other leading banks’ experiences.

Download the Harvard Business Review report

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