The bank is looking to double the current pace of issuing half a million new credit cards every month Parag Rao, Country Head for Payments Business, Consumer Finance, Digital Banking and Marketing. Rao said the firm will announce partnerships in a variety of industries from online retail to food delivery in the coming weeks to drive spending on cards.
recovery for HDFC bank Intensified since the eight-month-long card ban was lifted in August last year, the lender is seeking to move beyond punishment for repeated online blunders that hurt its customers. reserve Bank of India Data showed that the bank captured 29% of India’s total spends on credit cards in October, the highest among its competitors.
“We focus not only on card issuance, which is a distribution game, but also on deeper engagement, ensuring customers get more value in their cards and continue to spend,” Rao said in an interview.
According to Rao, the partnership will also include two airlines and a large hotel chain in the next few weeks. He added that HDFC Bank is in the final stages of developing a new digital credit card to attract young customers.
Banks in the world’s second most populous country are set to benefit from a surge in online shopping where customers use their credit cards for purchases. Bain & Company Inc. According to a report, 200 million to 300 million Indians are expected to spend $50 billion on online retail this year.
Part of the push into HDFC Bank will be linked to its merger Housing Development Finance Corporation, which will give it access to the mortgage lender’s customers, Rao said. The two companies agreed to enter into one of the largest global deals this year to accelerate home lending and consumer spending in India. According to Rao, beyond the partnership, the bank also wants to attract customers who use credit cards from India’s local retail payment system known as RuPay. He looks at the recent rules that allow linkage rupees Credit cards for a widely used government-backed payment interface, expanding the market for these cards.
“The credit line for such customers will be small, but they will be future customers who can upgrade to other cards as they grow,” Rao said.
And while peers are offering rewards on multiple products to gain customers, HDFC Bank is eschewing this strategy.
“We have never had the best discount in the market, nor do we want to be known as the card with the highest discount,” Rao said.