Bundit Cheevadhanarak, the bank's senior executive vice president, said more than one million customers would be targeted.

Although most Thanachart customers already have credit cards with other banks, it will try to offer more attractive promotions.

Currently there are 17 credit-card providers in Thailand. The maximum interest rate is 20 per cent per year. Only Bangkok Bank and Siam City Bank still maintain their rates at the previous ceiling of 18 per cent.

"As they [Thanachart customers] are our clients, the bank will provide them with better conditions than other card-issuers, both in terms of services and pricing. Around 98.4 per cent of our auto-loan customers have good records on debt payment," Bundit said.

Credit cards will provide more convenience to customers, while the cross-selling ratio is expected to increase to about three products per customer, which would support the bank's fee income, he added.

Bundit believes next year will not be too late to launch the credit card as there is still enough room to grow the business. He says it is the right time for the bank to operate this business, which is suitable for its assets.

The bank aims to have 100,000 cardholders within one year.

With about 6,000 staff at 142 branches and Scotiabank's support, Thanachart will be well equipped to sell the new product, Bundit said.

The bank is unlikely to outsource sales of the card and will set up a new unit to oversee the product.

Thanachart signed a memorandum of understanding with Scotiabank in March. The Canada-based bank will acquire a shareholding of 24.99 per cent, and

the deal is expected to be completed by June. The new foreign partner will mainly support the small bank in corporate loans, treasury business and trade finance. Thanachart expects the deal to help it grow its assets from Bt270 billion to Bt450 billion over the next few years.

Meanwhile, Shoke Na Ranong, chairman of the Credit Card Club, estimated that spending through credit cards would grow by 15 per cent this year, compared to 20 per cent last year.

Somruedi Banchongduang

The Nation