AEON Credit banks on new card to stay competitive

By Adeline Paul Raj
Published: 2009/09/14

AEON Credit Service (M) Bhd's (ACSB) (6599) move to come up with a new credit card was "necessary" for it to compete and stay relevant in the credit card industry, analysts said.

The new card allows it to tap on sister company AEON Co (M) Bhd's huge JCard loyalty cardmember base of more than 800,000 people.

AEON Co operates the Jusco department store and supermarket chain in the country.

ACSB managing director Naruhito Kuroda acknowledged this, saying that the credit card industry in Malaysia had become very competitive in the last few years.
There are 21 issuers currently and about 10 million credit cards in circulation, based on the approximately two million eligible credit cardmembers in the country, he noted.

"The AEON group's strategy as a retail and service conglomerate ensures that our consumer financing products offer card services. This is a unique business model as we are working closely with the retailer (AEON Co) and also the niche market," Kuroda said.

He added that ACSB would continue to find ways to further increase its cardmember base.

"Our target for 2012 is about 350,000 cardmembers and about two million JCard members."

ACSB is controlled by Japanese parent company AEON Credit Japan.