AU Small Finance Bank making credit card cornerstone to attract new customers
AU Small Finance Bank is fast expanding its credit cards business, competing with some full-service commercial banks as well as the new generation of fintech companies that are trying to grab a share of this growing segment.
Within two years of starting its own cards business, the bank currently has more than 600,000 credit cards in the market and sees it as a tool to attract new customers. Its competitors include Federal Bank (650,000 cards) and SBM India (940,000 cards), both full service commercial banks which too have scaled up their credit cards businesses recently.
While SBM India and Federal Bank have strong co-branded partnerships, AU Small Finance Bank has built its own distribution franchise.
Interestingly, credit cards are usually not the product banks look to scale up at the beginning of their journey.
AU Small Finance Bank received its banking licence in 2016.
Entering the third year in its credit cards business, the small finance bank is looking to build strategic co-branded partnerships with new-generation internet companies to scale up distribution further. It is working on a deal with a major travel company to launch a co-branded credit card soon.
“The co-branding initiative will also empower the bank in enhancing its new-to-bank customer acquisition through credit cards,” said Mayank Markanday, head of credit card business at the bank.
The bank has issued its ‘Lit’ cards meant for young consumers to more than 250,000 users in the last year alone.
These cards are flexible in their features and can adapt to the needs of young consumers, he said.
AU Small Finance Bank caters to a large number of customers from beyond the top 20 large cities in India. It has leveraged its presence to distribute its credit
