Bangkok--12 Dec--Krungthai Card
KTC discloses strategies for the next year. Continued brand building efforts in two directions: being a membership company backed by strong network of partners satisfying diverse requirements of credit card and personal finance clients with bundle offering campaigns to encourage use of card for everyday spending throughout the year; and, pursuing personal finance business more aggressively by attracting more personal finance clients and retaining present clients with a variety of innovative products and services to capture all broads of interests.
Mr. Niwatt Chittalarn, Chief Executive Officer, KTC or Krungthai Card Public Company Limited, said “The Thai economy in 2006 has been in a recess induced by rising oil price and interest rates. Consumers need to spend rather wisely. Fortunately, the country’s economic outlook is beginning to look more promising now with more stable political situation and interest rates as well as lower oil price. One of our long time determinations is to operate in such a manner that consumers are as relieved from burdens as possible. This is achieved through expansion of member base and introduction of attractive marketing campaigns which entitle consumers to more benefits than when they pay with cash. We want to make credit cards a part of their daily life. As for personal finance, we will encourage purposeful spending and practice of financial disciplinary through repayment. We will give clients lacking of financial liquidity a convenient access to a source of funds at reasonable interest rates. We provide refinance service to clients of other financial institutions who have good repayment record as well.”
“The marketing campaigns we have arranged continuously based on in-depth spending behavior analyses to satisfy the requirements of consumers as well as the efforts to enter provincial markets and to promote brand awareness through television and other media have resulted in total revenue for the first nine years of 2006 being 5,766 Million Baht which is nearly the total revenue for the whole year of 2005. We have attracted 450,000 new credit card and consumer finance accounts, a 124% rise from the end of 2005 to 1,642,803 accounts. This is comprised of 1,368,623 credit cards and 270,523 personal finance accounts. We have also discovered that more clients are aware of the KTC brand, decide to use our services over those of other financial institutions and spend more frequently with their cards.”
“With regard to expansion of credit card business in 2006, we have introduced KTC Titanium MasterCard credit card and KTC VISA Platinum credit card to penetrate the high-end market: business people with high purchase power, those whose lifestyle revolves around traveling and spending time in Asian countries, those who are concerned about their health and auto group members. Both were well received by clients and the number of applicants was satisfying. More importantly, we are expanding the promotional campaigns to key provinces such as Chiang Mai and Nakhon Ratchasima to attract more clients and to give cardholders in the provinces the opportunity to enjoy benefits from their use of card as do Bangkok clients. We are also paying attention to a target group of clients which have the potentials but are not yet ready for a credit card or a personal finance service. KTC 24 privilege card is introduced to satisfy the requirements of teenagers aged 18 and above to help them become more familiar with the KTC brand and to earn their trust so that they may start using KTC services immediately once they are ready in the future.”
“It is expected that competition will remain intense in the credit card and personal finance businesses in 2007 which is good for the clients as they will have more choices. Credit card is not only an evidence of financial stability these days. It is a safe financial tool which facilitates daily transactions and a value added one with discounts and privileges. Consequently, credit card promotions focus on everyday spending such as fuel, discount stores, department stores, restaurants, traveling and hospitals.”
“As for the direction we are taking in 2007, we will concentrate on brand building and on maintaining our leading status by the use of marketing strategies that differ us from the competitors. We will continue to work as a membership company and to expand personal finance business along with credit card business using segmentation marketing. For instance, introduction of cards conceived specifically for the elderly, highly individual people and those with metro lifestyle. We are also a trendsetter when it comes to Touch and Go spending with the introduction of MasterCard Paypass and VISA Wave. Starting next year we will issue and accept JCB credit cards of JCB —a world-class payment system service provider.
We will target clients who travel regularly to all cities of Japan, Korea, China, Taiwan and Hawaii. Other than that, we will pursue the provincial markets more aggressively as we see their potentials and the resulting opportunities. We have plans to open offices in key provinces such as Korat, Khon Kaen and Chiang Mai as well. However, we will continue to be careful in our approval, based on the members’ repayment ability. This is to ensure a stable stream of income and a good financial system for the country in the long run. It is expected that we will achieve two million KTC members by next year.”
“We will continue to introduce more marketing campaigns throughout the next year and combine privileges crucial to everyday spending from all partners, taking into account the requirements of the clients. These privileges will cover all categories of spending: auto, shopping, dining, electric appliances, furniture and traveling. For the next year, we will encourage members to use their credit card for their traveling and vacations whether at hotels or ticketing offices. This is to ensure that all clients benefit from products and services we offer, that they enjoy the greatest convenience possible as they spend, and, that they are most impressed by the KTC brand and all services.”
“With regard to the consumer finance business, we will continue to market primarily our ready-to-use products as they show a rising trend over from the previous year. This is because of their minimum payment option which helps alleviate the burdens on the clients well. We will engage more in segmentation marketing because clients have different behaviors of cash withdrawal. Additionally, we will combine privileges offered by partners through KTC Cash Revolve Card and KTC Cash Privilege Card and promote financial disciplinary with privileges, interest discounts and more. These help improve brand loyalty, too.”
“KTC Million is another business which adds value to our company. This is a source of funds for entrepreneurs looking for quick and convenient revolving capital as the approval procedure does not require much time. The marketing strategies for next year will be client portfolio quality maintenance, qualitative rather than quantitative growth of portfolio, and, focus on debtors’ repayment ability. So far these have allowed us to achieve lowest outstanding repayment rate compared to all in the industry. Further, we will still foster a good relationship with KTC Million clients through KTC Million Club and activities which benefit entrepreneurs such as recreational-technical seminar, overseas site visits and business networking at KTC Million Club with associates from their own and other industries. We will give members with good repayment record privileges in the form of discounts. This should entice clients to continue using our services and to contribute to the growth of portfolio in the next year.”
“Lastly, we will give KTC Touch a new facelift for an even more modern and convenient look. More branches will be launched across the country, in populated and business districts of major provinces. This will be done simultaneously with improvement of our own personnel to ensure quick and efficient services and introduction of exciting new products and services which certainly will please the consumers. All of this to stay ahead of all competition.”, said Niwat in conclusion.
For more information:
Public and Corporate Affairs Department
Krungthai Card Public Company Limited
Kandtharat Chermchitphong Tel. 0-2665-5057
Suchada Weerasakulrak Tel. 0-2665-5732
Fax. 0-2665-5046 E-mail: [email protected]