Major banks have stepped up campaigns to boost fee income from their credit card units as private consumption is expected to drive the economy in the second half amid signs that external demand is slowing.
HSBC Bank (Taiwan) Ltd (匯豐台灣商銀), a subsidiary of London-based HSBC Holdings PLC, Taipei Fubon Bank (台北富邦銀行), the banking arm of Fubon Financial Holding Co (富邦金控), and Taishin International Bank (台新銀行) under Taishin Financial Holding Co (台新金控) have recently rolled out campaigns aimed at frequent travelers, shoppers, diners and other affluent customers.
Standard Chartered Bank Taiwan Ltd (渣打銀行) and Citibank Taiwan Ltd (台灣花旗) have also demonstrated an aggressive interest in the sector, with the government forecasting that private spending will grow 2.78 percent to NT$7.87 trillion (US$248.2 billion) this year. Both provide their cardholders with bonus credit points for consumption at home and abroad, limited free airport pickups and parking, and dining and shopping discounts.
The promotions coincide with a high season for spending, as Taiwanese celebrate the Mid-Autumn Festival on Wednesday and the Republic of China’s 99th birthday on Oct. 10, with anniversary sales set to begin at major department stores next month.
The special municipality elections on Nov. 27 are also expected to boost spending as candidates organize activities to rally support.
Brian Chou (周郭傑), vice president of Taishin Bank’s credit card department, said customers are most attracted to bonus points, while convenience also ranks high among their list of concerns.
Taishin Bank, the nation’s third-largest credit card issuer, joined forces with MasterCard Worldwide on Thursday to launch a titanium card that offers its holders up to a 1 percent cash rebate upon point-of-purchase at select venues. The bank’s credit card business jumped 28.9 percent to NT$879 million in the first half from a year earlier, accounting for 24.07 percent of its net fee income.
Fubon Bank and Sogo Taichung Department Store (廣三SOGO百貨) launched their own titanium card on Thursday, aimed at consumers in central Taiwan. Cardholders could receive NT$500 worth of gift vouchers by charging purchases of more than NT$500, Fubon said in a statement.
Fubon’s credit card unit generated NT$170 million earnings, or 14.25 percent of the bank’s NT$1.19 billion net income for the first six months of the year.
HSBC Taiwan issued a joint credit card earlier this month with China Airlines Ltd (華航) to take advantage of the fast-growing cross-strait air travel.
Cardholders may enjoy greater frequent flier benefits, ticket discounts and other services, the bank said in a statement.
The move aims to boost incomes for both HSBC and the airline after the number of Chinese tourists visiting Taiwan reached 969,208 in the January-to-July period. Chinese tourist arrivals are expected to reach 1.5 million this year, up 54.31 percent from the 972,123 who visited last year.
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