CHIANG MAI : The consumer credit giant Krungthai Card is confident that it can successfully build on its leadership in the niche market for tourism and wedding credit cards.
The company, a unit of Krung Thai Bank, is spending 45 million baht in marketing activities in the first quarter, 20 million of which is going to its International Balloon Wedding Fair, a special campaign held over this past weekend in Chiang Mai in co-operation with MasterCard.
KTC plans to stage similar travel and wedding fairs later this year to build up its leadership in the segment.
''It's our first step to becoming the leader in credit cards tied with weddings,'' said Staporn Sirishinha, a KTC senior executive vice-president for leisure marketing.
He noted that card spending at the International Travel Fair last month was 200 million baht, or up tenfold from the previous year. Visitors increased fourfold to 400,000. Sponsorships and promotions at special fairs and exhibitions represent a key strategic initiative for KTC.
KTC reported 2007 net profit of 521 million baht, up 19% from 2006. Revenue rose 32% to 10.7 billion baht. Its member base rose 10% to 1.94 million accounts, including 1.46 million credit cards.
Meanwhile, Thawatchai Thitisakdiskul, another KTC senior executive vice-president, said the Bank of Thailand should be more flexible on current interest rate restrictions on consumer credit companies to help boost market competition.
The central bank currently caps interest rates for credit cards at 20% per year and personal loans at 28%.
But consumer finance operators say the caps only limit their ability to set pricing based on risk and result in many low-income consumers being cut off from credit.
Many turn to underground lenders who charge usurious interest rates.
news source : http://www.bangkokpost.com/Business/10Mar2008_biz35.php
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