"This is a way to grow the credit-card business in a greater-opportunity market," said executive vice-president Pittaya Vorapanyasakul.
While the upcountry credit-card base now represents 40% of the company's 1.6 million cardholders, spending with cards in the provinces is just 15% of total spending at
KTC does not set specific ratios of card base and spending between
Purchasing power upcountry has risen significantly in line with economic growth and greater business activity in the larger provinces.
The personal financial behaviour of consumers in the provinces has changed in a way similar to their big-city counterparts, with growing comfort in spending through plastic cards instead of cash.
"Even though a lot of credit-card providers are paying attention to the growing provincial market, it still has room to grow," Mrs Pittaya said.
"KTC is ready to go to 13 strategic provinces nationwide in order to boost both the card base and spending."
With the support of parent
KTC sees great potential in Chon Buri, Phetchaburi, Prachuap Khiri Khan,
For the upcountry market, KTC plans to focus on middle- and upper-income customers earning 40,000 to
The market segment represents 80% of the total card base.
Mrs Pittaya said KTC will launch a new credit-card offering in August focused on high-income customers earning more than
The goal is to issue 50,000 cards under the new product.
Despite plans to expand further in the credit-card market, KTC wants to keep non-performing loans from credit cards at the existing level of 2.2% this year.
(c)2014 the Bangkok Post (Bangkok, Thailand)
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