Maybank Philippines scrambles to grow credit card business

Maybank Philippines is looking to grow its credit card business this year at a more aggressive pace after more than a year since it entered the market.

 

Maybank cards business head Eden Leah V. Estrella said the bank is working to have a 130,000 consumer base by by the end of 2014.

 

Maybank Philippines ended 2013 with a consumer base of around 50,000. It started issuing credit cards on October 11, 2012.

 

"For a starting year, that's actually an achievement. At the same time we're also fixing our back office," Estrella said.

 

"Malaki ang potential to grow in the Philippines... We have to do better than industry. Maybank Philippines is very modest in size," she said.

 

"Other banks had a head start and we're just at our second year," Maybank sales and marketing for cards head Michael S. See said in a briefing in Taguig City.

 

Data from the Credit Cards Association of the Philippines showed credit card circulation is approximately 7 million as of end-2013.

 

This is roughly 7 percent of the 99,081,856 population estimate indicated in a counter on the Population Commission’s website as of Wednesday.

 

University of Asia and the Pacific school of economics dean Peter Lee U told GMA News Online in a phone interview the low penetration rate of credit cards in the country may be attributed to the low income of Filipinos and stringent approval process by banks before issuing credit cards.

 

"Average income in the country is not that high and banks ask for a lot of requirements for credit card application," he said. 

 

"But this should grow as our economy expands," he added. 

 

To grow Maybank Philippines' credit card base, Estrella said the bank is launching aggressive marketing plans and new products this year.

 

"We have plans for acquisition, meaning growing our card base. We also have plans for increasing usage through marketing offers and product development will introduce new card variants and co-branding to increase base and usage," Estrella said.

 

On Wednesday, Maybank Philippines launched its raffle promo for cardholders, saying it will send four winners to see Katy Perry Live at the Arena in London.

 

"We have this marketing and we have two objectives with this, acquisition and usage," Estrella said, noting that the offer is unique to Maybank Philippines and does not ride along with promos of Mastercard and Visa. – VS, GMA News