CIMBT targets younger card users

The bank yesterday formally launched its first credit card in this market targeting upper-income customers with assets under management at the bank of Bt1 million or more. The bank calls this group of customers “CIMB preferred”.

Anchalee Charasyosvuthichai, senior vice president and head of cards and fee-based products, said that as a small bank, CIMBT was positioning its offering as a travel card, by charging a hedging premium of only 1 per cent of card spending to protect against currency-conversion risk. In general, banks will charge 2.5 per cent. In the first year, CIMBT targets 30,000 credit-card holders.

It has adopted near-field communication for its cards, since this technology is a new trend to tap younger people or those preferring to use smart devices for payment. NFC is suitable for micro-payment, which is more convenient for customers who don’t want to use cash to make small purchases. Before going to younger customers, the bank will have to hit the four milestones – spending per head at Bt5,000-Bt8,000, the non-performing loan ratio not exceeding 2.4 per cent, healthy outstanding loans, and sufficient reserves to handle NPLs.

The bank targets the upper-income segment because these people have purchasing power and no problems with household debt.We have invited existing preferred customers using the CIMBT credit card and found that spending per head was about Bt10,000,” she added.