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Credit-card sector on recovery path

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Hang Seng and ICBC (Asia) unveil expansion plans to tap potential growth

The credit-card market is set for a full rebound, according to industry experts.

MasterCard vice-president and Greater China business manager Danny Cheung Wai-kin estimated that credit-card spending in the fourth quarter of last year experienced at least 30 per cent year-on-year growth.

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He said there were signs that people were using their cards to draw cash, a practice that had been in decline in recent years.

'It's probably too early to make any predictions based on what we just saw since we still have to look at the few months down the road. But if the increased number of cash advances is sustainable, then it can be a strong indication that consumer confidence is recovering,' Mr Cheung said.

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In view of the potential growth, two major banks have unveiled plans to expand their credit-card businesses.

Hang Seng Bank, which has 1.1 million card accounts, yesterday announced the relaunch of its Fortune MasterCard.

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