In a bold move, China has banned banks from offering free dolls, appliances, or any promotional gifts to attract new customers. The decision came after a viral campaign by Ping An Bank in Shenzhen, where customers were offered trendy “Labubu” dolls for depositing around $7,000.
Regulators swiftly stepped in, calling such marketing tactics illegal and damaging to fair market practices. The National Financial Regulatory Administration (NFRA) stated that these gimmicks inflate customer numbers without improving service or profitability.
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The ban also aims to curb rising competition and operational costs, especially as banks struggle with shrinking profit margins following interest rate cuts by China’s central bank.
Officials warned banks to focus on real financial services rather than consumer gimmicks, promising strict monitoring and penalties for those who break the rules.
