KTC making more local partnerships to attract upcountry spenders

The company is partnering with 17 local department stores, offering free instant premiums such as cash-back offers. It has found that upcountry customers are more likely than Bangkokians to use their credit cards if enticed by instant offers.

About 20-30 per cent of total credit-card spending in provinces is with local merchants, a figure KTC hopes to increase through its joint campaigns with local operators, Suwat said.

At present, 45 per cent of spending with KTC cards is outside Bangkok, of which 20 per cent is in 14 main provinces.

In the first five months, KTC credit-card spending in provincial markets grew by 12 per cent year on year, representing Bt25 billion, while spending in Bangkok grew by 10 per cent.

Average spending per head in the 14 provinces is Bt7,000, against Bt6,500 in Bangkok, while overall spending in provincial markets averages Bt6,100-Bt6,200.

Further, the delinquency rate of credit-card holders in the provinces is lower than in Bangkok.

Even though the spending growth in provincial markets in the first five months outstripped Bangkok, it remained behind the target of 15 per cent, and the third quarter is the lowest spending season for the credit-card business. Hence the company decided to launch a new campaign, "KTC Go Go Maldives and Hong Kong", to keep the momentum going upcountry, especially in the 14 main provinces.

In general, credit-card spending in the third quarter is 10 per cent lower than in the previous two quarters.

Pittaya Vorapanyasakul, the company’s executive vice president for credit-card business, said KTC credit-card spending in the first five months nationwide grew by 11 per cent, while the target for the whole year is 15 per cent.

Meanwhile, KTC’s approval rate for new credit cards has dropped as the company tightened its criteria.