Citi Thailand aims for a low double-digit growth in its credit card spending this year, well above the industry's estimate of mid-single digits.
The bank expects its credit card spending growth will be 10-11% in 2018, compared with industry gains of 5-6%. The number of Citi plastic cards is projected to increase by 9% compared with a 6% growth forecast for all industry cards, said Sandeep Batra, head of credit cards for Citi.
Based on its credit card business growth year-to-date, it feels it can hit the target, he said.
There are 21 million active credit card accounts in Thailand, and spending improved in the first half, said Mr Batra.
Credit card spending in the second half is expected to grow at a faster pace than the first half because of seasonal factors.
Lifestyle categories, particularly travel and shopping by affluent cardholders, dominate total credit card spending. Wealthy cardholders' spending growth doubled from total card spending in 2017.
On average, a cardholder in Thailand had 6.6 trips per year over the past two years compared with a 4.6-trip average for those in Asia-Pacific.
Thais' credit card spending increased by 51% year-on-year compared with 46% in Asia-Pacific and 36% globally. Thais travel and spending overseas also showed strong growth, he said.
To capitalise on rising spending, Citi Thailand yesterday launched a new lifestyle credit card, Citi Premier, targeted at affluent customers. It requires card spending of at least 30,000 baht a month, but the bank has not set a minimum income for cardholders.
Mr Batra said the bank aims for 120,000 Citi Premier accounts this year, with the new card supporting the bank's card base and spending growth for 2018.
Thailand is the first country in Asia to launch the Citi Premier credit card.
Citi Premier seeks to fill the void in Thailand's credit card market from cards offering customer benefits tied to certain department stores or retailers, he said.
Citi Premier offers shoppers a host of benefits when they make purchases at several retailers at home and abroad, including leading supermarkets and duty-free shops worldwide, said Mr Batra.
"Spending per Citi credit card exceeds the market average. Moreover, our active cards represent 90% of the bank's total credit card base," he said.
