Credit cards out of favour
Applications for credit cards have fallen because of political uncertainty and consumers' caution about spending, said Kasikornbank.
In January, the bank's number of applicants fell by about 10 per cent year on year due to several risk factors affecting consumer sentiment. These included an increase in lending rates, the New Year's Eve bombings in Bangkok and the sufficiency-economy philosophy. "People have realised about the sufficiency economy, so they are concerned about spending and have more financial discipline," Kasikornbank's first vice president Anchalee Charasyovuthichai said. However, monthly spending on the bank's cards increased in the first two months from last year. Currently, it stands at about Bt11,000 per card per month and it is expected to grow by 17 per cent this year. Kasikornbank aims to expand its card base by 13 per cent this year from about 1.01 million cards presently. New applicants for Siam City Bank's credit cards also decreased in the first two months compared with December, said executive vice president Pravit Ongwatana. "Applications dropped by about 10 per cent from late last year to about 2,000 per month," he said. The bank's rejection rate this year has exceeded 30 per cent, up from about 20 per cent last year.
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