OCBC Bank targets annual card billings of s$1 billion in three years with a travel credit card featuring a flexible reward programme
Singapore, 25 August 2019 – OCBC Bank has launched the new OCBC 90°N Mastercard Credit Card for the Singapore market, which is projected to achieve S$1 billion in annual card billings within three years by enrolling 150,000 fresh graduates, young PMETs (professionals, management, executives and technicians) and emerging affluent individuals.
The young PMET segment is replenished each year by an average of 24,000 fresh university graduates who will join the workforce. OCBC Bank defines emerging affluent segment as those in their 30s and 40s with S$100,000 to S$200,000 in investible assets and they make up more than 200,000 in market size
While the card is travel-themed – and so resonating with the many in the target customer pool who are avid travellers – it allows for flexibility by offering not just miles but a combination of all three of the reward types found in the market.
In the market today, there are cards that give instant cashback ranging from an average of 1.5% to 5% (60% of the total market share), cards that earn rewards points for every dollar spent – which can be used to redeem dining and shopping privileges (31% of the total market share) and cards that let you earn miles for flight ticket redemption (9% of the total market share).
Mr Desmond Tan, Head of Group Lifestyle Financing, OCBC Bank, said: "Only a handful of well-established credit cards in the market register annual card billings of more than S$1 billion and we are pleased that both our OCBC 365 and OCBC Plus! Visa cards have achieved that number. Our total card billings has a CAGR of 10% over the past three years from a card base of 2.5 million customers. Given the strength of the OCBC 90°N card benefits, the rising trend in frequent travelling amongst the younger generation and the high percentage of rebates and reward card users who are also keen travelers, we are confident to achieve our target of S$1 billion annual card billings in three years.”
“Statistically, the growing popularity of travel in Singapore cannot be doubted. Our FRANK by OCBC FRANKly Asked Questions survey showed that 73% of respondents view travel as an important part of their lifestyle and 82% of them placed gaining of life experiences through travel as a top priority. Overall, overseas credit card expenditure amongst our cardmembers has more than doubled compared to five years ago, and we continue to see strong growth in this category. All these factors put the OCBC 90°N card in a good position to do well.”
Earn Travel$ to convert to miles, cashback or reward points
With every dollar spent using the OCBC 90°N Card, customers will earn reward points called Travel$. Cardmembers earn 2.1 Travel$ per dollar when they spend in foreign currency, and 1.2 Travel$ when they spend in Singapore dollars.
Miles: One Travel$ can be converted into one mile. So cardmembers earn 2.1 miles per dollar when they spend in foreign currency, and 1.2 miles when they spend in Singapore dollars.
Cashback: Cardmembers can also opt for cashback. 1,000 Travel$ can be converted into cashback of S$10.
Reward points: Those who prefer to use their reward points directly can convert 1,300 Travel$ into S$10 shopping vouchers from various partners.
Easier redemption for miles
Two common pain points that cardmembers often face is the need to accumulate a considerable number of miles before they can be redeemed and the conversion fee that must be paid for every mile redemption. To address this, the OCBC 90°N Card allows users to redeem their miles at a minimum block of just 1,000 miles, instead of the industry norm of 10,000 miles.
On top of that, cardmembers will not need to pay the usual conversion fee of S$25 to redeem their miles. Moreover, all miles earned using the credit card will have no expiry date – a key feature that will give cardmembers more flexibility in planning mile redemption without rushing to meet the expiry date.
In the first six months of its launch, cardmembers will be able to earn eight miles per dollar spent when they book their accommodation with Agoda, Airbnb, Expedia, the Millennium Hotels & Resorts, as well as travel club and curating service, Mr. & Mrs. Smith.
There is also a promotional rate of four miles earned per dollar spent in foreign currency, and four miles per dollar spent when they book their flights with Singapore Airlines, SilkAir, Scoot, AirAsia & Jetstar Asia, as well as for duty free shopping like DFS & Shilla.
With the rising popularity of Netflix and Spotify as travel companions, cardmembers can enjoy four miles per dollar when the subscription fees of their Netflix and Spotify accounts are charged to the OCBC 90°N Card.
As a welcome bonus, new OCBC cardmembers and those who have not owned an OCBC credit card in the last six months will receive cashback of $50 and 7,000 miles as when they spend a minimum of S$5,000 in the first three months from their card approval date. Existing OCBC cardmembers will receive 3,000 miles when they spend a minimum of S$5,000 in the first three months from their card approval date.
The annual fee will be waived for the first year. Subsequently, cardmembers can earn 10,000 miles when they pay their annual fees.
More information can be found at: www.ocbc.com/90n