Co-branded credit cards are a collaboration between a financial institution, like Poonawalla Fincorp, and a business or brand. The advantage? You get a card that not only facilitates regular transactions but also comes with perks specific to the brand. Poonawalla Fincorp, led by Abhay Bhutada, is gearing up to launch co-branded credit cards in Q4 FY 2023-24. With the approval from RBI, co-branded credit cards will be an addition to their financial services. Let’s see how the introduction of co-branded credit cards will help Poonawalla Fincorp.
Why Co-Branded Credit Cards?
When you use a co-branded card, you unlock exclusive perks tied to the partnering brand. This collaboration results in giving rewards, discounts, or cashback options whenever you buy something from the partnering brand. For example, if you have a co-branded credit card for a specific airline, you might get some discounts while booking your next flight with that airline. It’s essentially turning your credit card into a customized experience, making your transactions a bit more rewarding and aligned with your preferences.
Entering the Payment Ecosystem
In a recent statement, Abhay Bhutada, MD of Poonawalla Fincorp highlighted the significance of launching co-branded cards. He stated that the co-branded credit cards will be a welcome addition to their product offerings, complementing the existing product basket. With the increased use of digital payment, co-branded credit cards will make Poonawalla Fincorp an active participant in the payment ecosystem.
Two-Fold Strategy: Existing and New Customer Focus
According to Abhay Bhutada, the strategy for co-branded credit cards is two-fold. Firstly, it involves offering the cards to the existing customer base. This move aims to enhance customer loyalty. It will also provide additional value to those already availing of Poonawalla Fincorp’s services.
Secondly, the co-branded credit cards will be presented as a bundled offering for new customers. It’s not just about attracting new customers, it’s about offering a seamless financial experience from the very beginning.
Transparency as a Core Value
One standout aspect of Poonawalla Fincorp’s approach is its commitment to transparency. Abhay Bhutada emphasizes that they will stick to their value proposition of ‘transparency’ in all offerings to their customers. By transparency, they mean that there will be no hidden charges.
By doing so, they want to stand out for their clear communication and financial openness. This also ensures that every cardholder understands the terms without any unwelcome surprises. It’s a simple yet crucial approach, providing customers with a financial experience devoid of the usual complexities of finance and money.
Enticing Opportunity for Customer Engagement
Abhay Bhutada recognizes that merely offering transparency is not enough; credit cards should be customer-friendly. The co-branded cards from Poonawalla Fincorp will come loaded with attractive features, but the features should be understood by their customer base. Once that is done and their customers start using co-branded credits and availing of the benefits, Poonawalla Fincorp can foster lasting engagement and satisfaction among valued clientele.
Looking Ahead
As Poonawalla Fincorp plans for the Q4 launch of co-branded credit cards, it will be exciting to see how they get integrated with their digital payment systems. Abhay Bhutada’s strategic move reflects not just a business decision but a clear vision for a more transparent and customer-centric financial future.
