UOBT aims for the heights
United Overseas Bank Thailand (UOBT) sets to raise its number of credit cards to 1 million in the next two years while maintaining double digit percentage for card spending.
Approximately 730,000 UOBT credit cards are in the market compared to last year with an amount of 700,000. The bank’s plastic card spending growth of 18.9% for the first half of the year was double the industry’s growth rate of 8.5%. The upper income customers are the bank’s strongest spending credit card users.
Mr Tearavath Trirutdolokkul, the executive director said that the bank aims for its card spending growth to be around 16-18% this year. He claims that aggressive business strategies would be a great boost to the bank. Also, the Singapore based bank is doubling the marketing budget for its credit card business this year. The bank’s focus for this year are two upper-income customer segments; Privi Miles and Prefer Platinum cardholders.
50,000 baht per month is the minimum income for Privi Miles card holders while Prefer Plantinum is 30,000 bhat. Both cards together account for more than 30% of the banks total credit cards. It is a ratio that set to increase to 40-50% by 2018.
However, currently both cards are account for 40% of the bank’s total card spending.
To capture young professional client, UOBT plans to launch a new card with a minimum income of 30,000 baht per month in the fourth quarter. To high net-wort customers who have minimum assets under management of 50 million baht or spend over 2 million baht per month in the second quarter next year, the bank will offer a new credit card.
In the first half year, the bank had kept non-performing loans for its credit cards at 2.3%, up from 2.2% in the same period last year.
With a 50% approval rate for new credit card applications, the bank maintains a strong risk management regime for its unsecured loan business.
Picture Source: Central Festival Phuket