Wed, Jan 22, 2014 - Page 13 News List

Taishin, RT-Mart extend credit-card partnership to 2020

By Crystal Hsu  /  Staff reporter

Taishin International Bank (台新銀行), the banking arm of Taishin Financial Holding Co (台新金控), has extended its credit-card partnership with hypermarket operator RT-Mart (大潤發) with the aim of adding 300,000 new customers by 2020, an executive said yesterday.

The renewed alliance came as major local lenders are seeking to increase their clientele through strategic alliances with hypermarket operators.

Cathay United Bank (國泰世華銀行) is teaming up with Costco Taiwan, CTBC Bank (中信銀行) with PXmart (全聯福利中心) and E.Sun Commercial Bank (玉山銀行) with Carrefour Corp Taiwan (家樂福) to court their customers.

“We have renewed the partnership with RT-Mart for another six years in the hope of adding 50,000 new customers each year and raising per card spending to NT$5,500 (US$181.78) a month from NT$3,000 at present,” Taishin retail banking executive Oliver Shang (尚瑞強) told reporters.

As credit cards gain importance as a payment tool rather than a borrowing medium, their direct contribution to fee and interest income is falling, Shang said.

However, the cards may allow Taishin Bank to sell wealth management and offer other financial products and services to new customers, indirectly lifting the bank’s overall profitability, he said.

Taishin Bank ties with E.Sun Bank for third place in the local credit-card market after CTBC Bank and Cathay United Bank, Shang said.

However, the number of active credit cards matter more, he said, adding that Taishin Bank is aiming to boost the rate of active cards to 70 percent this year, from 65 percent last year.

RT-Mart has 1 million members across Taiwan and customers may also use credit cards issued by other banks, RT-Mart public relations official Jerry Chang (張富堯) said.

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