OCBC Bank has unleashed a new travel credit card called OCBC 90°N that it expects will rack up $1 billion in annual billings within three years.
It aims to enrol 150,000 fresh graduates, young professionals, managers, executives and technicians, as well as a group known as emerging affluent individuals. The bank defines these as consumers in their 30s and 40s with $100,000 to $200,000 in investible assets.
The new card allows miles to be earned for flight tickets, but also offers two other reward types.
One is instant cashback ranging from an average of 1.5 per cent to 5 per cent, and reward points per dollar spent that allow dining and shopping privileges to be redeemed.
The 90°N card will let users earn 2.1 Travel$ per dollar spent in foreign currency and 1.2 Travel$ per Singapore dollar spent. Travel$ is the reward point that can be converted into one mile per point.
Card holders will also be able to redeem their miles at a 1,000 miles minimum block, compared with the industry norm of 10,000 miles, OCBC said yesterday.
There will be no conversion fee and no expiry date for miles earned.
Users can opt to convert 1,000 Travel$ into $10 cashback, while 1,300 Travel$ can be converted to $10 shopping vouchers from various partners.
Mr Desmond Tan, OCBC's head of group lifestyle financing, said overseas credit card expenditure overall has "more than doubled" in the past five years with continued strong growth.
"Only a handful of well-established credit cards register annual card billings of more than $1 billion and we are pleased that both our OCBC 365 and OCBC Plus! Visa cards have achieved that number," he added.
Mr Tan noted that OCBC's total card billings have had a compound annual growth rate of 10 per cent over the past three years from a base of 2.5 million customers.
It estimates that the new card's benefits and the rising trend of frequent travelling among younger people will allow OCBC to achieve its $1 billion annual card billings target in three years.