BPI, AirAsia tie up for card loyalty program

MANILA, Philippines - Bank of the Philippine Islands (BPI) has entered into a card loyalty program with AirAsia, the largest low-cost carrier in Asia, which is expected to jack up credit card usage by 20 percent.

Richmond Escolar, BPI vice president for card issuing business payments and unsecured lending group, said they expect to increase their credit card base to 1.6 million this year from one million in 2013 as it heightened marketing initiatives such as BPI Express Credit’s exclusive bank partnership with AirAsia BIG in the Philippines.

BPI Family Savings Bank president Jose Teodoro Limcaoco said the retail business of the bank would continuously grow by 15 to 20 percent this year.

In the first quarter of the year, however, BPI Family’s net income was relatively flat at P983 million against the same period last year due to the absence of trading gains.

But loan growth for the first three months went up 16.25-percent. Bulk of the thrift bank’s loan book is cornered by housing loans, 25-percent auto and 25-percent small business/commercial loans.

Limcaoco said he is optimistic the loan growth would still be boosted by growth in auto loans which recorded 40-percent loan releases during the period.

BPI Family’s deposits level for the three-month period stood at P183 billion.

Despite the impact of the higher interest rate regime, BPI Family is hoping to close the year with P3.6 billion in earnings, up from P3 billion in 2013.

Meanwhile, at the BPI/AirAsia loyalty program launch, BPI senior vice president Ginbee Go said BPI cardholders can now convert their Real Thrills Rewards (RTR) points to AirAsia BIG points.  Every three RTR points is equivalent to one AirAsia point.

BPI cardholders can use the BIG points to redeem AirAsia flights and services, among others.

Moreover, AirAsia BIG will give 13 percent bonus BIG points to BPI cardholders who convert a minimum of 300 RTR points (100 AirAsia BIG points) from May 13 to July 13, 2014.

AirAsia BIG CEO Alice Goh, for her part, said AirAsia BIG has over 70 regional partners, representing more than 1,5000 brand retail, finance and tourism.

We recognize BPI’s leadership in innovation and see this strategic alliance as mutually beneficial to both our companies,” she said.

Goh said the low-cost airline company is also planning to expand in the ASEAN market, partnering with Petronas, CIMB Bank in Malaysia, Bangkok Bank and Central in Thailand, Bank Mandiri and Indosat in Indonesia, DBS and Starhub in Singapore.

In the Philippines, she said they are eyeing to tie up with a petroleum player and grocery chain.

The AirAsia BIG Loyalty Program is operated by Think Big Digital Sdn. Bhd., a joint venture between AirAsia and Tune Money.  AirAsia BIG is a global points currency serving AirAsia and the Tune Group.

Under the program, members earn BIG points from AirAsia, Tune Talk, Tune Hotels, and many other partners including Budget, Avis, Starhub, DTAC, Petronas and major banks DBS, Citibank, CIMB, Standard Chartered, Bank Mandiri, BRI,Siam Commercial Bank and Bangkok Bank.