Chinabank sees Landers card boosting consumer lending push

MANILA, Philippines — China Banking Corp. expects its new premium credit card partnership with Landers Superstore to support the continued expansion of its consumer lending business, as demand for credit cards remains firm despite shifts in household spending patterns.

Niña Reynoso, vice president and officer-in-charge of its cards and personal loans group at Chinabank, said the bank’s consumer business, including credit cards, has become one of its fast-growing segments over the past five years as it broadens its traditionally corporate-focused franchise.

“The consumer side of Chinabank is a growing business. The consumer business, including credit cards, is growing fast over the past five years,” Reynoso told The STAR on the sidelines of the launch of the CBC Landers Executive Visa Signature powered by Chinabank.

“So cards are actually a great contributor already to the bank. We’ve already introduced several card products over the past five years. Hopefully, we can tap all the markets as we grow,” she said.

The lender’s latest push comes through its first white-label credit card partnership, a two-in-one membership and credit card designed exclusively for Landers Executive Members.

The CBC Landers Executive Visa Signature card offers up to seven percent rebates on Landers purchases, two percent rebates on dining transactions and one percent rebates on qualified retail spending worldwide. It also comes with no annual credit card fee and carries the full features of a Landers Executive Membership.

The card also provides Visa Signature travel, dining and lifestyle privileges. Customers who reach P1 million in accumulated spending will be upgraded to a metal “Millionaire’s Card,” which Chinabank and Landers described as a premium loyalty milestone for cardholders.

Reynoso said the product is geared toward Landers Executive Members, particularly business owners and entrepreneurs who tend to have stronger spending capacity and better payment behavior.

Reynoso said the card has already seen brisk take-up as Chinabank had issued nearly 10,000 Landers cards as of May 11.

For its overall card business, Reynoso said Chinabank has issued more than 50,000 cards so far this year.

The bank is entering the lifestyle-linked credit card space at a time when consumers are becoming more selective in their spending as inflation and economic uncertainty reshape household priorities.

Still, Reynoso said Chinabank has not observed a slowdown in credit card activity, only a change in spending mix.

“Actually, (credit card activity) is still good. Because there’s just a shift in terms of spending. People are geared toward more on the basic expense, which is actually Landers’ grocery portion, the retail supermarket portion,” she said.

“So this is actually a very good partnership. But in terms of spending, we did not see any slowdown in growth. Just a little bit of shift. And overall, we have a positive outlook still,” Reynoso added.

Landers deputy CEO Bill Cummings said the partnership was designed to deepen the value proposition for members who already incorporate the warehouse club into their regular spending.

“At Landers, we’ve always focused on giving our members a premium experience backed by real value,” Cummings said.

“With the CBC Landers Executive Visa Signature powered by Chinabank, members can enjoy stronger rewards, exclusive privileges, and a more elevated shopping experience that fits naturally into how they already live and spend.”

The launch adds to Chinabank’s efforts to widen its retail banking footprint as it pursues growth beyond its core corporate and commercial lending operations.