General Card Services has elevated its credit card portfolio through strategic foresight and adaptability to market dynamics
Thailand’s credit card market has undergone significant transformations recently, driven by technological advancements, evolving consumer preferences and external factors like the Covid-19 pandemic. Financial institutions are now grappling with the challenge of meeting consumers’ demands for diverse features and innovations in credit cards.
General Card Services (GCS), a subsidiary of Thailand’s Bank of Ayudhya (Krungsri), has strategically invested in promoting card usage among higher-income segments.
Operated by GCS, the Central The 1 (C-T1) credit card is a co-branded card from Krungsri and the Central Group that was launched as a part of GCS’s broader strategic plan initiated in Q4 2022. This initiative has significantly contributed to GCS’ growth in 2023 as the market returned to normalcy and expanded.
Consistent growth
As of August 2023, the C-T1 credit card is one of Thailand’s most extensive co-brand portfolio, excelling in card base, spending volume and portfolio asset size.
Since 2022, C-T1 has been on an upward growth trajectory, consistently achieving double-digit growth across key performance indicators. Breaking its records set in 2021, C-T1 reached the highest net earning assets of THB25.3bn ($791m) with a substantial 13% year-over-year growth.
The annual total usage volume surged to THB96.6bn ($3.0bn), reflecting a 27% year-over-year growth.
GCS has strategically refocused on its entry-level product, REDZ, which now constitutes approximately 92% of the total card base and captures about 97% of new acquisitions.
Strategic initiatives
The revamped product, branded as C-T1 REDZ (Limited), is a targeted initiative with two main objectives. Firstly, it aims to increase penetration into the younger demographic, positioning it higher than most credit card portfolios.
By introducing C-T1 REDZ (Limited), GCS seeks to drive incremental acquisitions, attract younger individuals entering the workforce and rejuvenate the bank’s overall portfolio. To align with the preferences of this demographic, GCS has introduced new features to C-T1 REDZ (Limited) to include merchant tenants within shopping centres owned by local retail property developer Central Pattana.
GCS has also developed several marketing strategies to increase awareness, incorporating branding exercises, communication efforts and public relations activities. Notably, the bank has appointed Thai superstar Kao Supassra Thanachat as its official brand ambassador to enhance reach and engagement.
GCS also developed a new digital payment solution through QR codes in 2023. This initiative aims to make the C-T1 credit card a preferred payment choice, allowing cardholders to make payments through mobile apps using QR technology linked to the card. The success of the C-T1 card underscores a blend of strategic foresight, adaptability to market dynamics and innovative approaches.
General Card Services has been recognised as the winner of the Best Credit Card Initiative award at the Annual Retail Banker International Asia Trailblazer Awards 2024.