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CITIBANK N.A. said it will increase the number of credit cards it
would issue this year by targeting the “emerging segments” to
maintain its market leadership.
In an interview, Be Tan, Citibank vice-president
and credit-card business director, said the company would have
issued 1.5 million cards by the end of this year as it now looks
into areas or segments it does not traditionally tap like
professionals in the manufacturing, pharmaceuticals, banking and
medical professions.
This is a 20-percent growth from last year’s
number, which grew by 40 percent year on year. Citibank is targeting
at least 30 percent in sales growth and receivables. By increasing
its market presence, the firm hopes to capture 30-percent market
share by year-end.
In support of this growth, Citibank is also
strengthening its sales force with more training and wider
geographical reach by establishing a presence in the country’s key
cities nationwide.
According to Tan, the increase in consumption of
durable goods also helped the company in growing its business
especially with its younger clients’ increasing appetite for
electronic gadgets like cellular phones and iPods. Older
professionals are buying more home appliances like televisions and
home theater set ups.
Credit-card companies are also benefiting from
the ongoing airline battle since budget airfares made people
scramble for cheap airfares and holiday deals on top of the rise in
the travel industry’s reliance on Internet bookings, forcing
clients to use credit cards for online transactions, Tan said.
With the increasing client base, the Citibank
executive said the company managed to keep its payment defaults to a
“manageable” single digit level owing to its strict risk
management.
Tan said the business process outsourcing
industry is producing more young professionals who have a lot of
disposable income, which they normally use to purchase the latest
electronic gadgets.
In a recent survey it released, Citibank said
financial literacy among Filipinos remains low, with only few of
those surveyed having ample savings in case of a downturn.
-- Likha C. Cuevas-Miel
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