KBank offers universal debit card for young adult spenders
Kasikornbank is issuing a universal debit card with attractive features to respond to the requirements of customers aged 18-35.
"We believe the universal debit card will reinforce our retail lifestyle banking concept and drive spending," Pakorn Partanapat, executive vice president of KBank, said yesterday.
Customers in this age group, sometimes referred to as "Generation Y", are the top debit-card spenders. They have various lifestyles. Cardholder behaviour is becoming more functional and emotional, so debit-card features should be improved, he said.
The character of a debit card and its features must be attractive to make cardholders willing to pay the annual fee.
K-Max universal debit card provides privileges ranging from up to Bt200,000 in personal accident insurance to medical coverage of a maximum Bt5,000 per accident.
The K-Max card contributes high non-interest income, as its annual fee is Bt550, compared with Bt250 for character debit cards.
The bank this year plans to issue 4 million debit cards, up from 3.4 million new cards last year. A about a million will be character cards including the Doraemon card launched yesterday.
The bank plans to boost fee income from this business by more than 25 per cent.
Of the 40 million debit cards in the Thai market, 8 million are KBank cards. Of the Bt57 billion in overall spending on debit cards last year, Bt28 billion was on KBank cards.
About 80-90 per cent of debit-card usage is cash withdrawals from automated teller machines and 20 per cent is payments, but card spending is gradually increasing, Pakorn said.
E-commerce and application stores from international outlets account for 90 per cent of spending and air tickets and hotels for 10 per cent. KBank's promotions for debit cards are aimed at these activities.