TMB Bank (TMB) plans to double the number of its credit cards in circulation next year and push the figure up to 1 million in the following two years, targeting the bank's existing customer base amid a saturated market.
There are currently 250,000 TMB credit cards following the introduction of the consumer loan product two years.
Of these, two-thirds are existing TMB deposit customers, with new customers accounting for the rest.
Given that half the bank's 5 million existing accounts are active, TMB has more room to broaden its credit card business.
Executive vice-president Kanchana Rojvatunyu said the country's seventh-largest lender by assets expects revenue from the credit card business will reach 1 billion baht this year, increasing to 2-3 billion baht in the coming years.
"We admit the local credit card market is quite saturated, but the bank is focusing on existing customers. We want to be the main bank for existing customers in the business area," she said.
There are currently 17 million credit cards in circulation in the Thai market.
A customer on average has six or seven credit cards, three of which are active at any given moment, and Mrs Kanchana hopes one of the three active cards will be a TMB card.
TMB plans to revamp its plastic card business next year.
Product features and pricing are the main strategies to help the bank's achieve its ambitious plan, said Mrs Kanchana.
The bank's existing credit card, TMB So Good, has attracted customers with its unique zero-rate offering for the first three repayment instalments.
Cardholders earning 15,000 baht or more per month with average spending of 13,000 baht per card per month are the main target group.
Mrs Kanchana said TMB plans to focus on its credit card business next year rather than its two other consumer finance products _ mortgages and personal loans _ as credit cards will better facilitate product cross-selling from the customer base.
Next year it will target growth for two unsecured loan products _ credit cards and personal loans _ at 30% each, with 5% growth in housing loans.
Currently, its total consumer loan portfolio stands at 80 billion baht _ 50 billion baht in mortgage finance and the rest in unsecured loans.
Shares of TMB closed yesterday on the SET at 2.78 baht, up eight satang, in trade worth 915 million baht.