For credit cards sales, banks focus on internal customers
In line with the fall in discipline of credit card usage, banks are increasingly focusing on their internal customers to sell credit cards and are showing reluctance in targeting new customers outside that circle.india Updated: Aug 27, 2008 20:46 IST
In line with the fall in discipline of credit card usage, banks are increasingly focusing on their internal customers to sell credit cards and are showing reluctance in targeting new customers outside that circle.
In order to secure themselves from the bad behaviour and keep a healthy mix of customer portfolio, banks are now ensuring a complete due diligence of all the applications received.
The eligibility norms have been made more stringent and banks are now asking for more details. Some banks are looking only to tap internal customers while some have decided not to give credit card to a person who does not hold a card.
"We are not targeting customers who neither hold an existing credit card with any bank nor are our bank's existing customer," said Subrat Pani, head credit cards, Kotak Mahindra Bank.
Some banks are looking to add customers with stronger profile and track record. "Our focus is entirely on internal customers," said Sohini Rajola, vice president, credit cards, Axis Bank. "Additionally, we are now focusing more on high-end customers for premium cards."
HDFC that was already focusing on internal customers has enhanced its focus on them for new cards. "Of our total 4.5 million existing customers, 70 per cent have at least one relationship with the bank," said, Parag Rao, head credit cards, HDFC Bank. "That percentage has now gone up to 85 per cent for all new additions."
This is expected to improve the portfolio of credit card holders for the banks. "Better checks will result in better portfolio and will start reflecting by way of a slowdown of bad practices in the coming six to 12 months," said Sachin Khandelwal, head credit cards, ICICI Bank.