Even
as the credit card industry in India went through a rough patch in the last
four years, with their base shrinking, customers, who were in the habit of
using plastic money, were becoming more and more choosy about their issuer
keeping in mind the ease of usage and services rendered to
them.
According to an HT-Mars survey, American Express topped the list of
multinational credit card issuers followed by Citibank, HSBC and Standard
Chartered. Among Indian banks, the HDFC bank's credit cards got the top nod,
followed by ICICI bank. Of a total score of 1000, Amex secured the highest
points at 796, while the HDFC bank card got a score of 762.
In a market characterised by intense competition, while trying to steer away
the risk factors that had led to a default rate touching double-digit figures,
credit card majors are trying to woo genuine customers who use plastic money as
a matter of convenience and habit. But to retain customers and expand their
base carefully, banks and credit card issuers are trying to make all efforts to
satisfy them by offering various freebies and discounts.
As per the Credit Information Bureau (India) Limited (CIBIL), that tracks
the credit history and credit worthiness of customers, over 80% of consumers
today have a good credit history. "All banks are very particular about
checking the credit records of customers and their spending pattern and they
assess CIBIL's scores before sanctioning loans in every case," Arun
Thukral, managing director, CIBIL said.
The survey, carried out in 12 cities, comprised of a total of 2916 credit
card holders who rated their experiences on a variety of parameters, including
benefits and services, rewards and redemption, and billing.
"We believe that we not only offer customers more convenience, but also
more control and choice on a global platform. We continue to research
opportunities on the digital platform that we believe will change the way
payments are made in India," Anand Selvakesari, head, consumer banking at
Citi India said.
An average credit card holder in India made annual purchases of about
R45,000 until March 2011 on her credit card as against an annual R33,335 in the
financial year 2009-10, a growth rate of over 25%, the annual payment card
industry survey 2011 prepared by Atos Worldline indicated. Credit card spends
increased at points of sale by 22% year-on-year, from R61,824 crore in 2010 to
R75,516 crore in 2011, as per industry data.
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