Singapore Records Highest Penetration Of Platinum Cards In Asia

By Tengku Noor Shamsiah Tengku Abdullah SINGAPORE, April 13 (Bernama) -- As the classic cards market increasingly becomes saturated, the platinum cards segment is poised to grow, with over seven in ten (71 per cent) cardholders in Singapore holding platinum cards in 2011, up from 68 per cent over the previous year. According to a survey by HSBC on cardholders in general, covering both HSBC and non-HSBC credit cards, Singapore registered the highest penetration of platinum card holders across Asia, followed by Taiwan (56 per cent) and Hong Kong (41 per cent). Singapore cardholders owned the most number of credit cards across the region, with an average of 3.3 cards per individual followed by Hong Kong and Taiwan (both at 2.7). Singapore also has among the highest proportion of multiple cardholders in Asia. Around three in four cardholders in Singapore (73 per cent), Hong Kong (76 per cent) and Taiwan (72 per cent) hold more than one credit card. Despite the popularity of having several cards, the survey observed an increase in proportion of cardholders, who used only one card, from 30 per cent in 2010 to 34 per cent in 2011. Commenting on the survey here Thursday, Paul Arrowsmith, Head of Retail Banking and Wealth Management, HSBC Singapore said: “Our survey points to an emerging trend towards increased take up of platinum cards in the Singapore market." He said the HSBC Visa Platinum is the bank's most subscribed credit card with the widest customer base. It caters to the family segment with cash rebates on day-to-day utilitarian needs such as groceries and petrol as well as attractive reward points. “Credit cards have become an integral part of the consumer lifestyle in Singapore, in particular the mass affluent whose expectations are also rising in tandem with their search for more value from their credit cards such as exclusive privileges, distinctive rewards and a high quality of service. "This is why we have taken pains to understand the evolving needs and preferences of our customers so that we can introduce card features that are most relevant and value-adding to their lifestyles," he said. Arrowsmith said HSBC cards are tailored differently for different segments of the affluent market. Singapore cardholders were the second highest spenders in the region with an average monthly spend of US$1,020 per month, up 19 per cent over the previous year. The highest spenders in Asia were Australian cardholders, with an average monthly card spend of US$1,320 in 2011. Hong Kong ranked third at US$730 per month. Another observation was that fewer Singapore cardholders have taken up merchant-specific instalment plans, a drop from 34 per cent in 2010 to 28 per cent last year. While Singapore cardholders use more than one card, they consolidate 77 per cent of their card spending on their main card, a trend also seen in their regional counterparts - Hong Kong (78 per cent) and Taiwan (77 per cent). On the key drivers or perks influencing Singapore respondents on the choice of main credit card, attractive rewards programme (42 per cent) was perceived as most important followed by attractive usage benefits (14 per cent). The above findings were from the HSBC Credit Card Monitor survey, which aimed gain a better understanding of customers' perception and attitudes towards credit cards. The survey interviewed around 5,000 general cardholders, mostly between the ages of 18 and 54, in eight markets including Hong Kong, Singapore, Taiwan, Malaysia, India, Australia, Indonesia and the Philippines. -- BERNAMA