‘EveryDay’ plastic
Newly listed East West Bank has long identified lending to the consumer as a key strategy to be a “progressive” and “forward-looking” bank—one that plays a significant role in the banking system and whose brand resonates across households.
In the past, it made inroads in credit card lending by offering the lowest revolving interest rate and longest repayment terms, thereby rolling out the most affordable card in the market.
But the Gotinanun-led bank has since launched an array of credit card products catering to various market segments, from the newbie borrower to the most affluent. The latest card—Eastwest “EveryDay” Mastercard—was recently unveiled to harness consumers’ growing spending power.
“Others have a special credit card for gasoline, another for drugstore, another for grocery. This is for everything. We’re not tied up with them (merchants); we just give straight-up rebates,” said EWB president Antonio Moncupa Jr. during the launch of the new “EveryDay” credit card.
This new card offers up to 5 percent rebates on “essential” spending—or those spent for grocery, gas and drugstore purchases.
Rebates are also offered for nonessential spending or those outside of grocery, gas or drugstore.
The higher the discretionary spending swiped using this card, the higher the rebates offered.
For nonessential spending below P5,000, the rebate stands at 0.5 percent; for P5,000 to below P10,000, the rebate increases to 3 percent; and for nonessential spending worth P10,000 and above, the rebate rises to 5 percent.
The credit cardholder does not need to redeem cash rebates as they will be automatically credited to his “EveryDay” Mastercard account for every P200 worth of cash rebates accumulated.
“You differentiate through the features of the card, not the brand,” said Moncupa.
Such differentiation, he said, allows the bank to have a product for every segment, from the “beginner to the affluent to the super-rich.”
The “EveryDay” card, he said, is for those in between gold and platinum cardholders.
Other features of the card are as follows:
— All purchases, whether local or international, will be billed and paid in Philippine pesos to allow consumers to keep their foreign currency intact;
The cardholder has the option to pay the minimum payment due, the total settlement balance or any amount in between on or before due payment due date. If an amount less than total statement balance is paid, a finance charge of 3.5 percent per month is applied.
— Cash advances of up to 70 percent of the credit limit may be obtained from any EWB ATM, over the counter, any EWB branch or any ATM displaying the Mastercard and Cirrus logos.
— There is an option to convert high-ticket, shopping and travel expenses to installment payable in six, 12, 18 or 24 easy payment terms at low monthly add-on interest rates.
Zero interest-rate installment plans are available at selected participating merchants.
Hassle-free payment of utility, telecommunications and insurance bills are offered to those enrolling in its quick bills facility.
EWB to date has almost 800,000 cards in force and aims to breach the one million mark in the next few years. “We’re trying hard,” Moncupa said.
About 70-80 percent of EWB’s cards are active, said EWB executive vice president and consumer lending head Jacqueline Fernandez.
To date, the credit card business accounts for a little more than half of EWB’s consumer business. In the first quarter, EWB’s consumer portfolio grew by 25 percent, aided by the credit card and auto lending businesses.
“We’re hopeful that the trend will hold,” Moncupa said.
