BankBazaar reports 95% YoY growth in credit card issuances

RBI data shows that the number of active cards has doubled since 2018 and tripled since 2016.

BankBazaar reports 95% YoY growth in credit card issuances
BankBazaar attributes this growth to the quality of customers taking these credit cards. More than 90% of customers have a credit score of above 750.

BankBazaar, India’s largest fintech co-branded credit card issuer and online platform for free credit score, has reported a 95% year-on-year increase in credit card issuances in Q1 of FY23 by partner banks on its platform. The company aims to achieve 3 million co-branded credit cards in force over the next three years.

BankBazaar attributes this growth to the quality of customers taking these credit cards. More than 90% of customers have a credit score of above 750.

Adhil Shetty, CEO, BankBazaar.com, said, “Post pandemic, the market turned risk-averse and there was tightening of eligibility criteria. This made BankBazaar’s value proposition even more attractive to our bank partners and customers alike. Customers were successfully able to build and manage their credit score with our CreditStrong, and we were able to connect our partners with customers who had a proven credit history and score. This right product-customer fit meant our customers were able to access credit when they needed it most and our partners were able to reach the right quality of customer base. And the result was the fastest co-branded credit card business growth in funding winter.”

The trend at BankBazaar reflects the larger trend of the resurgence in credit cards in India as post-pandemic demand rises. RBI data shows that the number of active cards has doubled since 2018 and tripled since 2016. It has grown to 76.87 Mn as of May 2022, up from 62.39 Mn in May 2021. That’s a yearly growth of 23% and the highest ever since 2019.

Also Read: How much will a Rs 5 lakh gold loan cost you? Check EMI, latest interest rates

This trend is also strongly reflected in credit card spends, which saw 118% year-on-year growth in May 2022. “Credit cards have moved on from being an aspirational product to an essential payment tool especially for the 150 million Indians with a credit score of 700+. As the importance of online shopping continues unabated, co-branded credit cards from BankBazaar and partner banks have been driving innovations, and today, online-friendly cards that offer no-cost EMIs special offers and customised discounts are becoming our key USP. As a licensed and well-regulated product, credit card is also one of the safest products to use and one that brings significant benefits to the users when used wisely with on time and full payments or usage of EMI features,” said Shetty.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos