Krungthai Card (KTC), a prominent credit card issuer, anticipates a surge in credit card spending in the wake of the state’s tax rebate scheme and the festive spirit of the Chinese New Year. Despite a sluggish domestic consumption trend, KTC’s card spending has seen a remarkable 10% year-on-year growth since the beginning of the year. This growth is attributed to the government’s reinstated tax rebate program, known as the Easy E-Receipt, and the ongoing Chinese New Year celebrations. Pittaya Vorapanyasakul, the president and chief executive of KTC, emphasized the positive impact of these initiatives on the company’s performance.
The Easy E-Receipt program, which kicked off on January 16 and will continue until February 28, allows eligible purchases of up to 50,000 baht to be deducted against personal income tax. Ms. Pittaya highlighted that the surge in spending has been primarily fueled by middle- and upper-income cardholders. However, she noted that the increase in spending is selective, reflecting the varying purchasing power of different customer segments. She stated, “Credit cardholders whose purchasing power has not yet fully recovered due to the uneven economic recovery tend to make smaller-ticket purchases.”
Despite the challenges posed by the uneven economic recovery and subdued domestic consumption, KTC remains optimistic about achieving its target of 10% spending growth for the first quarter. The company aims to issue 250,000 new credit cards this year and sustain a 10% year-on-year growth in card spending. As part of its strategic endeavors, KTC has appointed Wilaiwan Nopparat as the new head of information technology (IT). Nopparat will spearhead the company’s digital transformation program and oversee the restructuring of its core payment system, setting the stage for sustainable business expansion in the long run.
In the rapidly evolving digital landscape, consumer behavior is evolving swiftly, necessitating companies like KTC to adapt rapidly to meet the changing needs of clients. KTC’s plan to strengthen its infrastructure across people, processes, and digital technology, with a specific emphasis on artificial intelligence, underscores its commitment to staying ahead of the curve. The company has allocated a substantial budget of 1 billion baht for its digital transformation initiative this year. This strategic move is geared towards offering financial products and services that align more closely with customer needs, while also bolstering cybersecurity measures to mitigate the growing cyber risks in the digital realm.
As KTC propels forward with its digital transformation journey, the company is poised to leverage enhanced technology capabilities to identify and acquire target customer groups, enhance asset quality management, and expand its sustainable loan portfolio over time. Ms. Pittaya’s vision for KTC’s future underscores the company’s unwavering commitment to innovation and customer-centricity in an ever-evolving financial landscape.
