Moderate Growth Approach
- RBL Bank is adopting a moderate growth strategy for its credit card portfolio.
- Instead of aggressively expanding, the bank aims for up to 15% growth, even if the industry grows by 20-25%.
- The focus is on unit economics, customer engagement, and cross-selling other products to existing clients.
Focus on Returns & Customer Relationships
- Rather than prioritizing growth, RBL Bank is focusing on earning “reasonable” returns on its capital.
- The bank is also working on deeper customer relationships by cross-selling products like personal loans.
- No aggressive customer solicitation; loans are offered to existing clients or those seeking products at branches.
Multi-Pronged Credit Card Strategy
- RBL Bank is using a multi-pronged approach to boost its credit card business:
- Expanding its field team to promote bank-branded cards.
- Partnering with state-owned companies like IRCTC and IOCL for co-branded cards.
- Collaborating with consumer brands such as Patanjali.
- Forming partnerships with fintechs and non-bank lenders.
Competitive Fuel Category
- The fuel category is highly competitive due to its frequent use.
- RBL aims to make its products stand out by offering sharp benefits, making it the card of choice for fuel transactions.
- Currently, fuel spending makes up 10% of RBL Bank’s overall credit card spending, up from 7-8%.