Wave of mass market credit cards erodes foreign majors’ base
Foreign majors like Standard Chartered and DBS Bank India experienced significant contractions in their credit card bases, with falls of 28% and 29% respectively, in June. Corresponding expenditure on these cards also declined by nearly 18%, indicating a notable shift in the competitive landscape of India's mass market credit card segment.
What this means
This trend suggests that local banks and fintechs are effectively capturing market share in the mass-market credit card segment, possibly through tailored offerings or aggressive acquisition strategies. Foreign banks may need to reassess their product positioning and customer engagement models to retain relevance.
Most affected: Retail banking, Credit card issuers
Key takeaway: Evaluate market segmentation strategies and product features to address evolving consumer preferences and intensify competition from domestic players.
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