The credit card business is likely to end the year with satisfactory growth, similar to other types of retail loans. Toward the year-end, competition of the credit card business is characterized by active campaigns and special promotions presented by commercial banks and non-bank operators to boost people's spending during the festive season.
According to a KResearch's survey on credit cardholders' behaviors in the Bangkok Metropolis, the respondents planning for special spending during the long holiday and New Year celebrations have expected to have higher credit card spending by 1.8-2.5 times their normal amounts. Consequently, the aggregate spending of credit cards issued by commercial banks and non-bank operators may grow at least 12 percent YoY, beating the 6.0-percent growth recorded in 2017. Meanwhile, the outstanding credit card loan of the overall system will likely continue to increase by 7.0 percent, although this year's “Shop Chuay Chart" economic stimulus measure of the government is somewhat different from those implemented in the last two years.
In 2019, around 71.2 percent of the surveyed cardholders view that their spending plan will likely be not lower than the figures of 2018. However, the opinion given by a group of 28.8 percent of the respondents reflects their increasing caution due mainly to their concerns on future income amid greater expenditure burdens.
KResearch expects that the outstanding balance of commercial banks' credit card loans may sustain growth at 7.0 percent in 2019, close to the 2018 record. Meanwhile, credit card spending will likely grow 8.0 percent amid intense competition with respect to promotional campaigns to expand their customer base, improve customers' satisfaction and stimulate the use of the credit limit of the cards.