RHB aims high with dual credit cards

The Sun (Malaysia) - - SUNBIZ - BY EE ANN NEE

KUALA LUMPUR: RHB Bank Bhd yes­ter­day in­tro­duced the RHB Dual Credit Cards, which are tar­geted to in­crease new cus­tomers card ac­qui­si­tion by 30% by the first quar­ter of 2019, from 500,000 credit cards cur­rently.

RHB act­ing head group re­tail bank­ing Nazri Oth­man said the RHB Dual Credit Cards of­fer cus­tomers value-added life­style propo­si­tions with com­pet­i­tive ben­e­fits, through the RHB Cash Back Credit Card and RHB Re­wards Credit Card for both MasterCard and Visa.

“On av­er­age, we is­sue over 10,000 credit cards a month and we ex­pect 60% of new card is­suance to come from the dual cards,” he told a press con­fer­ence af­ter launch­ing the new RHB Dual Credit Cards yes­ter­day.

Nazri said RHB’s fo­cus on the dual cards is based on re­cent in­dus­try sta­tis­tics, which in­di­cate that 50% of mar­ket spend dis­tri­bu­tion spans cat­e­gories that RHB Cash Back card is pro­mot­ing while an­other 30% of mar­ket spend dis­tri­bu­tion are from the cat­e­gories that RHB Re­wards card is pro­mot­ing.

“By con­sol­i­dat­ing the fea­tures of the two cards, we will be able to cap­ture 80% of the credit card spend­ing of an av­er­age cus­tomer,” he said.

RHB hopes to drive the growth of its credit card spend to achieve dou­ble-digit growth at an av­er­age of 15% com­pared with av­er­age mar­ket growth rates of 8%.

The RHB Cash Back Credit Card of­fers cus­tomers up to 10% cash back on ex­pen­di­ture for daily es­sen­tials such as petrol, din­ing, util­i­ties and gro­cery and other re­tail spend, en­abling cus­tomers to earn cash back value of more than RM600 yearly.

On the other hand, the RHB Re­wards Credit Card al­lows cus­tomers to earn re­wards points up to 10 times the amount spent on cat­e­gories, which in­clude pur­chase of movie tick­ets, on­line shop­ping, overseas spend­ing, health and in­sur­ance as well as other re­tail spend.

He said the ben­e­fits of the dual cards, in­clud­ing po­ten­tial cash­back of RM600 a year as well as re­wards, far out­weigh the ser­vice taxes for the cards.

On an­other note, Nazri said the prop­erty crowd­fund­ing scheme an­nounced in Bud­get 2019 is still in its early days and is not ex­pected to sig­nif­i­cantly im­pact RHB’s mort­gage busi­ness.

“This is very much the key de­vel­op­ers that are tak­ing this ini­tia­tive and it’s fo­cused on cer­tain seg­ment of the mar­ket. To­day, when you ask first time house buy­ers to come up with the 10% (pay­ment for the house), not to men­tion other an­cil­lary costs like le­gal fees and what­not, they have dif­fi­cul­ties in do­ing so, let alone the 20% (pay­ment to own a house un­der the new scheme). The ques­tion is how do we go about han­dling that part of the equa­tion?” he asked.

Nazri also ques­tioned the scheme’s eq­uity part on who will own the prop­erty, whether it will be the bank, con­sor­tium or the in­di­vid­u­als.

“In the Malaysian con­text, af­ter five years, you get to see the eq­uity in the prop­erty where prop­erty prices go up. But what hap­pens if the prop­erty prices go down? Who’s go­ing to bear the losses or be re­spon­si­ble for the gap in terms of the fi­nanc­ing in the prop­erty prices? These are the things that re­main unan­swered.”

From left: Visa Malaysia coun­try head Ng Kong Boon, Nazri, RHB Bank­ing head of group cards and un­se­cured busi­ness Sien Vee Loc and MasterCard Malaysia coun­try head Perry Ong dur­ing the launch yes­ter­day.

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