The Indonesian office of the Hong Kong and Shanghai Banking Corporation (HSBC) says it wants to expand its premium segment with the launch of a signature card this year.

The multinational company would rely on strong economic growth and domestic consumption to reach its target, according to HSBC executives.

HSBC introduced its first signature card aimed at the local market, the HSBC Visa Signature, on Wednesday in Jakarta, in partnership with Visa.

The card was aimed at HSBC’s more affluent customers at the upper level of its premium customer base, according to HSBC retail banking and wealth management head Siddarth Baidwan.

HSBC currently has 800,000 credit card customers, 40 percent of who are in the premium bracket with a monthly income exceeding Rp 30 million (US$3,079). The new card supplements existing credit card products, ranging from classic to platinum.

“With the emergence of a strong affluent class in Indonesia, we realize that there is an opportunity in the market to serve that higher segment,” Baidwan said.

Based on its research, HSBC determined that there had been a shift among high-end Indonesian clients looking for exclusivity, Baidwan said.

The bank would provide privileges including travel perks to boost its premium credit card business, he added.

HSBC customer value chief Vira Widiyasari said that the bank expected that the signature card would attract enough new clients to increase its number of premium customers, who she expected would comprise 60 percent of HSBC’s total number of credit card customers within two to three years.

“Indonesia has about 2.3 million potential premium customers,” Vira said. “It will be good if we can grab 5 percent of that figure as our signature clients. With current economic growth, I do not think it will take us very long to achieve our target.

HSBC also planned to offer to upgrade existing platinum card holders to boost business, according to officials.

At the moment, credit cards comprise almost half of the consumer banking business of HSBC, which claims about a 10 percent market share of the local credit card industry.

HSBC’s average transaction value has been estimated to 60 percent higher than that of the industry average, and the company has announced plans to book 15 percent growth this year in total transaction volume.

According to Indonesian Credit Card Association (AKKI) general manager Steve Marta, there are currently more than 15 million credit cards circulating in Indonesia.

Their aggregate average transaction value stands at around Rp 17 trillion per month, with 16.5 million to 17 million transactions recorded.

“Even though competition in the high-end segment is not yet as tight as that of in the mass market segment, banks will continue to create new programs to encourage their affluent customers to increase their credit card usage,” Steve said.

“In this segment, the banks generate their income more from transaction fees than from interest,” Steve said during a telephone interview.

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