The increase in wealth in semi-urban and rural markets is a big potential for the banking industry, and Axis Bank is looking to acquire a larger portion of the country’s credit card market, according to a top corporate executive on Monday.
Consumer spending in India is rapidly increasing, and by 2026, it is predicted that two out of every three transactions would be conducted using digital forms of payment, according to Axis Bank Managing Director and Chief Executive Officer Amitabh Chaudhry.
“India is headed for interesting times, it is one of the fastest growing economies in the world and is well on the journey to becoming a USD 5 trillion dollar economy. Also, we have been seeing some rapid fundamental shifts, especially in the banking and financial industry like consumerism and disruption etc. “And that is why large private banks like us have made investments to improve their operations and modernise the technological architecture. Also, I believe the real differentiation would come from being distinctive and developing exclusive customised products led by innovation,” Chaudhry said on the launch of the co-branded credit card with Samsung and payments solution provider Visa.
He stated that the national government and RBI have made several attempts to transform India into a digital economy. The RBI’s introduction of a central bank digital currency, as well as innovations like UPI payments, are all moves in the right direction. All of this, together with simpler client onboarding, more consumer knowledge, and broader acceptability, reinforces the industry’s opportunity, according to the official.
The country’s third-largest private sector bank by asset size has a 16% market share in UPI transactions and a 22% market share in UPI P2M transactions (payments to merchants). It is the fourth-largest participant in the credit card industry, with over 17% additional market share in the past six months and 12% at the conclusion of the first quarter ended June current fiscal.
The bank’s credit card acquisition during the June quarter increased fourfold over the previous year, totaling over 1 million (10 lakh) cards. Sanjeev Moghe, President and Head-Cards and Payments, Axis Bank, explained the partnership with Samsung by stating that it is one of the largest brands in the business and that the bank has always prioritised innovation and new items.
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