Political impasse diminishes number of foreign visitors and credit card spending: KBank

[webfact]

Political impasse diminishes number of foreign visitors and credit card spending

BANGKOK, 29 Jan 2014 (NNT) - According to the Kasikorn Bank (KBank), the political impasse has negatively affected the credit card spending both in terms of goods purchasing and advance cash withdrawal.

Mr. Chartchai Payuhanaveechai, Executive Vice President, revealed that spending through KBank credit cards has grown 19% since the beginning of this year, a sharp drop from last year's 30%. Meanwhile the overall credit card usage in the market has grown 13% which is considerably lower than the bank has anticipated, he said.

The Executive Vice President said the credit card spending has so far reached 14 billion baht, a small rise compared to 11.8 billion baht in 2013. He said advance cash withdrawals this month stood at 1.59 billion baht versus 1.38 billion last year. The KBank Executive Vice President said the figures signify the increase in cash spending among the consumers in order to avoid creating household debts.

According to the bank, tourism and precious gems sectors were hardest hit by the political impasse and the decline in credit card spending. The former took a deep plunge as statistics show this year's growth has so far been only at 9% compared to 52% last year.

Hotel accommodations so far have no expansion at all, the bank indicated, adding that restaurant's growth will drop to 19% in 2014 from 26% in 2013, while the fuel sector drops from 23% growth rate in 2013 to 14%.

Nonetheless there are businesses that have brighter credit card spending outlook this year such as furniture, super market and life insurance.


-- NNT 2014-01-29

[NongKhaiKid]

" Brighter credit card future spending outlook for life insurance " ?

A comment like that opens the door to all sort of comment especially with the current situation.

[Prbkk]

Well, K Bank....there is a prefect opportunity for you to adopt a "real world" policy for issuing credit cards to credit worthy foreigners living in Thailand. If you and other banks had any sense, you would scrap the "jumping through hoops" lunacy of the current policy ( to the extent it could be called a policy) and start competing for a very large chunk of business. Foreign banks permitted to enter this market for retail business would blow you right out of the water.

A few hippies have absconded leaving debts but rather than factor that into the cost of business, Thai banks make life difficult for those who are credit-worthy, long-term residents. Slightly off topic but a pet peeve

[Costas2008]

"Nonetheless there are businesses that have brighter credit card spending outlook this year such as furniture, super market and life insurance."

He forgot to mention the Bar girls.

[bigbamboo]

So people here are spending more on life insurance. I wonder why.

[NongKhaiKid]

So people here are spending more on life insurance. I wonder why.

Wonder what the surcharge would be for coverage against an ' extra-judicial killing ' ?

[tomross46]

I have stopped using my credit card, because I do not know if the system is safe. There is no guarantee that the systems have not already been hacked. If they can get to Target and Niemon Marcos in the States, why should I feel that the hotels or shopping centers are safe.

[oldthaihand99]

I have stopped using my credit card, because I do not know if the system is safe. There is no guarantee that the systems have not already been hacked. If they can get to Target and Niemon Marcos in the States, why should I feel that the hotels or shopping centers are safe.

There are alternatives to using the plastic card "system".

Street beggars & bank robbers deal in cash.

[mrmicbkktxl]

Well, K Bank....there is a prefect opportunity for you to adopt a "real world" policy for issuing credit cards to credit worthy foreigners living in Thailand. If you and other banks had any sense, you would scrap the "jumping through hoops" lunacy of the current policy ( to the extent it could be called a policy) and start competing for a very large chunk of business. Foreign banks permitted to enter this market for retail business would blow you right out of the water.

A few hippies have absconded leaving debts but rather than factor that into the cost of business, Thai banks make life difficult for those who are credit-worthy, long-term residents. Slightly off topic but a pet peeve

If all foreigner have a Thai credit card then who pay the 150 or more baht?

[diehard60]

the people from the south and from Bangkok can thank their beloved suthep for this. he need sto be put behind bars What he is doing is worse then anything Thaksin has ever done aginst Thailand.

[Suradit69]

Well, K Bank....there is a prefect opportunity for you to adopt a "real world" policy for issuing credit cards to credit worthy foreigners living in Thailand. If you and other banks had any sense, you would scrap the "jumping through hoops" lunacy of the current policy ( to the extent it could be called a policy) and start competing for a very large chunk of business. Foreign banks permitted to enter this market for retail business would blow you right out of the water.

A few hippies have absconded leaving debts but rather than factor that into the cost of business, Thai banks make life difficult for those who are credit-worthy, long-term residents. Slightly off topic but a pet peeve

"Well, K Bank....there is a prefect opportunity for you to adopt a "real world" policy for issuing credit cards to credit worthy foreigners living in Thailand"

If a foreigner has such stellar credit worthiness, wouldn't he/she already have plenty of credit cards when he settled in Thailand. I have two US based cards, which is probably two too many, for emergencies and unexpected "opportunities" and a PayPal account. Rarely use any of them, but do consider them a convenience and safety net. Would not want any more. Don't really see why I would want a Thai based card, especially since they have (I believe) unlimited liability for fraudulent use.

Anyway the "real world" offering of credit cards and loans seems to have bitten western banks in the butt ... even those that managed to survive the recent financial crisis with government bail outs. I doubt the fraudulent use of credit cards by a few hippies is what makes Thai banks risk averse when it comes to offering credit to foreigners.

If you just want to carry less cash, Thai banks offer debit cards that draw on your bank balance I believe. I was offered that or a credit card option when I opened my bank account many years ago ... I think. I declined whatever it was they were offering. If you want to borrow money to finance your lifestyle beyond your income level, why not use credit from your home country ... out there in the "real world."

Real world banking:

Edited January 29, 2014 by Suradit69

[3NUMBAS]

aw shed a tear for the gem stone scammers selling worthless rubbish at high prices ,at least the shutdown has shut them down at last after 30 years of bliking unwary tourists ,so thats one good result

[taony]

They are complaining about 19% growth??

[allan michaud]

I thought this might be interesting but instead it is total and utter rubbish. The figures given are completely meaningless, clearly the journo wasn't listening or didn't understand what was being said, or the translation was <deleted> as usual.

The editor is equally responsible for putting out such utter drivel.

Muppets!

[whoisyourdaddy]

Has the bank brain ever thought that possibly people just do not want to use credit cards?

[winstonc]

that will be the thai wives/gf getting that life insurance...just to be safe you understand..im only thinking about you honey.....

[belg]

so one can conclude that protest rallies are good for the national debt, if people spent less on crap they dont need, just for face