HSBC: Credit card sector in RP still has enough room for growth

The immature market for credit card usage in the Philippines has given Hong Kong Shanghai Banking Corporation (HSBC) a huge opportunity for growth, while the bank is strengthening its niche in the credit card business.

Although HSBC is not the number one credit card issuer in the Philippines, it claimed that it is the fastest growing issuer in the country, said HSBC senior vice president for marketing and product development Suresh Nanoo.

Last year, this global banking powerhouse, hit the 500,000 number of credit card membership, a 35 percent growth over the previous year.

This year the bank is aiming for more accelerated growth of 50 percent in this particular business, as the Philippine credit card market still offers huge opportunity, Nanoo said.

Just like any credit card issuer, Nanoo said HSBC has also past due problems, but it minimal and it is able to control is delinquency problem.

"In the Philippines we see our growth in the credit card business," Nanoo said in an interview recently during the unveiling of the bank's newest promotion in celebration of its 130 years in the Philippines.

Just like any bank operating in the Philippines, HSBC is strengthening its offer in the consumer banking feature.

"We've always been known in the corporate banking, now we are accelerating our business in consumer banking," Nanoo said.

In the last five years, HSBC had directed its focus on several backbone products, such as wealth management, cards, and installments.

However, he said the credit card business in the Philippines has become the bank's growth engine for the entire consumer banking operation.

He said the bank is able to widen its consumer base through the credit card business, and reach out to broader market aside from corporate, because of the fast moving credit card trade.

"We are going forward to project higher growth rate. This year we aim to grow at least by 50 percent in the credit card business," Nanoo said.

In the Philippines he said huge number of consumers is still using cash purchase, unlike in the developed countries.

Amid the financial difficulties, he said Filipinos just have to be well oriented on how to use credit card wisely in order to avoid problems.

In celebration of its 130th years in the serving the Philippine market, the bank is giving a chance for any Filipino, depositor of HSBC or not, to travel around 77 countries (of their choice) through an electronic raffle campaign via text message.

Roundtrip tickets for two, hotel accommodations and US$2,000 pocket money are in store for 10 lucky Filipinos.

"Anyone can join. That's the best thing about this offer. Whether it's a trip to a favorite place or a new exotic get-away, Filipinos have 77 destinations to choose from. From Mauritius to Mexico, Canada to China, Brazil to Bahrain, Mauritius, or the UK and USA, this is surely a once-in-a-lifetime treat from HSBC," Nanoo said.

The nationwide promotion is one from October 7 to November 20 this year.