In order to target first-time credit card users, banks are mulling have partnerships with e-commerce and digital entities to offer instant credit cards to customers, based on their spending patterns.
Sources said HDFC Bank, which is believed to have largest credit card base, is one such player contemplating such tie-ups.
“We want to tap those customers who are spending a sizeable amount every month for their daily requirements. As an instance, if a person is coughing up Rs 5000 for paying a particular taxi app, we can tie up with the company and assess that person’s spending. Since I already have the address and spending patterns, with a tie-up I can offer them an instant credit card with a limit of Rs 10,000. And, later once the customer is part of the system, we can look at upgrading them,” an official explained.
The move is aimed at targeting customers who are not yet credit card users and make payments through their debit cards or pay in cash. By targeting such customers, banks are looking at expanding their credit card base in a market that has become fairly competitive. Also, by offering a credit card of a limited amount initially, banks believe the risk will be limited.