UOB Thailand plans to expand its credit card business next year via the upper-income customer segment and marketing partnerships.
In the first half of 2023, UOB Thailand recorded 15% growth in credit card spending year-on-year, compared with 8-10% for the overall market.
The bank expects double-digit growth this year and 15% expansion in 2024, said head of card business Suporntip Pongsachamnankit.
The growth would be supported by upper-income customers, with a minimum income of 35,000 baht per month, which represents more than 50% of the bank's customer portfolio, she said.
The bank has around 2.4 million credit cardholders.
Partnership is a key strategy to facilitate growth for next year, Ms Suporntip said.
UOB Thailand launched five co-branded credit cards yesterday, expanding its offerings to meet customers' lifestyle preferences.
The co-branded cards were designed in collaboration with five popular domestic and global brands: Grab, Lazada, Makro, Mercedes-Benz and Thai Royal Orchid Plus.
The UOB Grab card is designed for city dwellers, capitalising on the widespread use of smartphones for hailing rides, ordering food and payment.
The bank's credit cardholders make nearly a million transactions on Grab per month.
With the significant shift to online shopping after the pandemic, the UOB Lazada card caters to savvy e-commerce consumers.
The bank's card spending via the online channel has grown 37% year-on-year thus far in 2023.
The UOB Makro card is expected to strengthen the confidence of small merchants and individual customers on the affordability of supplies for their business or daily needs, she said.
The bank's 2023 Asean Consumer Sentiment Study analysed trends in Singapore, Malaysia, Indonesia, Thailand and Vietnam, finding 30% of Thai consumers are worried about their ability to afford essential items, said Ms Suporntip.
The UOB Mercedes card is meant to appeal to affluent customers, contributing more than 40% of UOB's card spending.
The UOB Thai Royal Orchid Plus card is tailored for frequent travellers, as tourism rebounded following the pandemic, with spending on flights accounting for 37% of all spending on the bank's credit and debit cards this year.
She said the travel card offers exceptional benefits, such as a fast track to Gold status in the Royal Orchid Plus programme and the ability to convert spending into airline miles.
With the completion of UOB's acquisition of Citigroup's consumer business in four markets in Asean, the bank now serves around 8 million retail customers across the region.