This is how banks can win Asia’s credit card clash

DBS, CIMB, and RCBC reveal their trade secrets in the credit card business.

ABF: An affluent person may have 3-4 cards in his wallet. On which basis should he decide which card to use? How can a bank set itself apart from competitors?

CIMB Bank: Renzo Viegas, Group Deputy Chief Executive Officer and Head of Consumer Banking
Top tier premium customers will typically choose a credit card which provides him the best personalised services. For example, CIMB Enrich World MasterCard’s customers will have a dedicated relationship manager to assist them in their credit card needs and total banking solutions. For the mass market segment, however, users are often value-seekers and will use the credit cards they believe will provide the most value to suit their lifestyle.

Banks that aim to succeed in the cards business will need to utilise the available data and research such as customers’ spending behaviour, demographic and credit data to develop targeted attractive offerings. These offerings are more likely to prompt consumers to favour one credit card to another as it is specifically targeted and highly relevant to their consumption needs.

RCBC: Ismael Sandig, Senior Executive Vice President - Retail Banking Group
Based on observation, customers want more of instant gratification for promos and privileges, while efficiency of service can be the game-changer. Customers are willing to pay for good service.

DBS Bank: Jeremy Soo, Managing Director and Head, Consumer Banking Group (Singapore)
Customers should select a card that offers him both convenience for day to day transactions such as contactless payment for micro payments if he prefers to go cashless and rewards that matches his lifestyle. For example, if he/she is a frequent flyer then a card like DBS Altitude, one of the fastest ways to earn miles in town, would appeal to the customer. For trendsetting customers, they may go for cards such as DBS Insignia Visa Infinite card or DBS Black card that offers them access to exclusive events or venues.

Other than benefits, DBS sets itself apart from the other providers by bringing customers greater convenience through innovative offerings such as mobile payments and mobile rewards – DBS Rewards mobile app allows cardmembers to track their rewards usage and use the built-in augmented reality feature to search for nearby participating DBS merchants for instant redemption.