Kolkata, May 16 (IBNS): SBI Card, one of the country`s leading credit card issuers, has grown its cardholder base to over six million by garnering fastest ever growth in its card volume, officials said on Wednesday.
The company added over one million customers in 6 months, between September 2017 and February 2018,thus consolidating its position as the second largest credit card issuer in the country and expanding its market share to16%.
The company had achieved a customer base of 5 million in September 2017, by adding 1 million cards between October 2016 and September 2017. The growth rate has since doubled. The average monthly card spends have increased to Rs 7000 crore plusas compared to Rs 4000 crorea year ago.
Speaking on the development, Hardayal Prasad, MD & CEO, SBI Card said, “The remarkable growth we have experienced is a result of our customers` continued trust and support. Our commitment to deliver innovative, industry leading products, backed by excellent service and a strong ethos of trust and transparency, has resonated with our customers making us a preferred brand for millions across the country. Over the past few years, we have consistently grown at over 40% CAGR on card spends, against the industry growth rate of around 25%. Our market share on both number of cards and spends has risen steadily.”
On the company`s vision and future he added, “We believe there is great potential for further growth and innovation, as India rapidly goes digital. We will continue to innovate and invest in technologyto develop best in class payment solutions and enrich customer experience. We are excited to leverage the potential of Artificial Intelligence in driving the next level of digital transformation and enhancing customer experience. We believe the millennial consumer segment presents the next big opportunity for us. We already have unique products for these consumers and our efforts will be to keep building new partnerships, products and offers to cater to the needs of these new generation customers. Through continual value creation for our customers, we look forward to strengthening our position as a leading cards issuerwhile contributing to the development of the payments ecosystem in India.”
In the last one year from FY 17 to FY 18,the company witnessed over 75% YOY growth in average monthly card spends which is nearly double the industry growth rate.Market share on customer base has risen from 15% to 16% plus while share on card spends has risen from 13% to 16% plus from FY 17 to FY 18.
SBI Card`s steady growth has been driven by various factors.The company has built a robust premium portfolio which contributes significantly to spend. SBI Card ELITE is the top end premium product while SBI Card PRIME caters to urban, young affluent customers. SBI Card has been at the forefront of innovation and has been the first to meet evolving needs of specific consumer segments through unique products such as SimplyCLICK SBI Card for the young online generation, Doctors` SBI Card etc. The company`s co-branded card portfolio which is the widest and most diverse in the industry, has also been a significant growth driver. SBI Card recently expanded its strong partner portfolio with the BPCL SBI Card – the country’s most rewarding fuel co-brand credit card. The company continues to grow its cashback program with alliances across categories and regions.
Technological advancements to enhance customer experience and security have also been instrumental in driving growth. The company is continually integrating new age technologies such as AI and Host Card Emulation to bring customers a seamless payment experience.
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