Private sector lender Federal Bank on Wednesday announced a strategic alliance with OneCard and launched a mobile-first credit card that aims to provide a seamless digital experience to the young, tech-savvy population across the country.
With OneCard, Federal Bank will target the young working professionals between 23 to 35 years, primarily representing the millennials and Gen Z.
The digitally native cohort is open to experimenting with new apps and have considerable disposable income.
According to the latest report by Deloitte, millennials and Gen Z alone comprise more than 35 per cent and 27 per cent respectively of the Indian population.
Shalini Warrier, Executive Director and Business Head of Retail at Federal Bank, said the lender has always believed in the strength of partnerships to expand reach to customers.
"OneCard comes with a strong customer proposition, backed by state-of-the-art technology and analytics. We are confident that this partnership will see the bank and OneCard scale new heights in the credit card business."
As of March 31, there were 62 million credit cards in the system which moved up to 62.4 million by the end of May.
The government's vision of a cashless society, digitalisation, developments in e-commerce and growth in POS infrastructure has encouraged the use of credit cards.
Credit card spends have expanded robustly, growing at a CAGR of 25 percent from fiscal 2016 to fiscal 2021, and growth is expected to continue to reach Rs 15 lakh crore in total credit card spends for fiscal 2024.
OneCard has been launched by FPL Technologies -- a fintech start-up which aims to digitally revolutionise credit and payments in India.
The company earlier launched the OneScore app in 2019, to empower people to monitor and manage their credit health in a simple, secure manner without any spam. The scoring platform is widely popular and has acquired more than 6 million users within just two years of its launch.
( With inputs from ANI )
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