Kotak Mahindra Bank Limited, a leading private sector lender, wants to emerge as the preferred credit card product for every Indian and is looking to grow the market share of its unsecured business, especially credit cards, in a big way, said Ambuj Chandna, President – Consumer Assets, Kotak Mahindra Bank.
The growth in market share would come from its strategy to forge new partnerships and target millennials and Gen Z through digital offerings, Chandna told BusinessLine here.
The ongoing focus on technology, curating products for the underserved, and building strength around data and analytics will help Kotak Mahindra Bank realise growth in credit cards market share in days to come, he added.
Grow market share
Currently, KMB is ranked seventh in terms of credit cards outstanding with the total number of cards in force at around 65 million in the country.
“We would like to replicate our home loan strategy where we have dramatically increased market share in recent days and will gradually achieve Kona Kona Kotak Credit Card (Kotak card in every corner) in days to come,” Chandna said.
The heart of Kotak strategy is that customers should find value in whichever product is sold to them, Chandna said.
This value proposition will be largely realised through partnerships (like the latest co-branded card with Indigo) that Kotak Mahindra Bank will forge, and through technology investments made by the bank.
“We are now working on several partnerships — both in our credit cards business and otherwise — which Kotak Mahindra Bank will announce soon. The idea is to provide value through partnerships, to use partnerships as a stepping stone for growth,” he said.
Supply entire spectrum
He also maintained that Kotak Mahindra Bank would not prefer to be straitjacketed into a few customer segments in credit card space, but rather deliver value for the entire spectrum. “We will cater to all segments and not confine ourselves to ultra high net worth or HNI or mass affluent alone,” Chandna added.
Chandna said that Kotak Mahindra Bank has now “pressed the accelerator” on unsecured products and is confident that credit cards as a product will continue to stay, although form factors may change due to technology developments and changes in consumer behaviour.
“The idea of individuals wanting a credit line will stay. They may or may not use the plastic. That does not matter. The application has already gone digital. The card business is here to stay and is something we are invested in,” he said.
Going forward, Kotak Mahindra Bank also plans to invest more in Buy Now Pay Later (BNPL) given the potential in that area.
Meanwhile, asked if Kotak Mahindra Bank would look to create a separate legal entity to house its credit card business, Chandna replied in the negative.
“There is no such plan. The card business will continue to be part of the bank”, he said.
Kotak White Card
Credit card customer may have heard about the ‘Black Card’ in the credit card industry and its premium orientation. Now, Kotak Mahindra Bank is looking to bring the same value proposition to the premium segment in India through its “Kotak White Card”.
Keeping HNI consumers’ requirements in mind, Kotak White Card would do away with the traditional rewards points system and make rewards simpler to understand, giving customers more clarity and control over their rewards. On reaching specific spend milestones, Kotak Mahindra Bank customers can directly claim vouchers of their favourite brands and enjoy luxury brand vouchers, Chandna said.