Aeon Credit to focus on boosting e-money card usage

From left to right: AEON Credit Service (M) Bhd Chief Strategy Officer Ajith Jayaram, Chief Financial Officer Lee Kit Seong, Chairman Ng Eng Kiat and Managing Director Yuro Kisaka at the AGM.

KUALA LUMPUR: AEON Credit Service (M) Bhd is tapping into the five-million strong loyalty card membership database under the Aeon group of companies to boost usage of its e-money card in Aeon malls and expand the company’s business.

The Aeon Member Plus Visa Card, introduced in November last year, has already secured 700,000 cardholders, while its new e-wallet has recorded over 200,000 downloads.

Aeon Credit chairman Ng Eng Kiat said the group’s focus this year would be on consolidating the Aeon group database and to integrate the loyalty member programme to its Aeon Member Plus Card.

The e-money card, he added, was on target to hit one million cardholders by November this year – one year after the launch.

“We also want to expand the M40 segment of our customer base and the key segments expected to drive this growth are personal finance, vehicle financing and credit cards,” he told reporters after the group’s AGM yesterday.

The non-bank financial services provider had posted a 18.5% rise in pre-tax profit of RM472.2mil for the financial year ended Feb 28, 2019 (FY19) from RM398.3mil a year ago.

Net profit rose by 18.2% to RM354.6mil from RM300.1mil during the period while revenue grew by 10.6% to RM1.37bil.

The better FY19 performance was supported by its ongoing efforts to improve customer loyalty through new product offerings targeted at the B40 segment – its biggest market – and the M40 segment. At the moment, the group’s customer base is at a 65:35 ratio of B40 to M40, with Aeon Credit looking to boost the M40 segment to achieve a 60:40 ratio over the next two years.

Chief strategy officer Ajith Jayaram said the group was looking at partnerships for its e-wallet and e-money card, but would focus on expanding its memberships first.

The potential partners, he said, could be in areas of telecommunications, transportation or petrol companies in order to add more value for customers.

We have identified potential partners but have not begun talks at the moment,” he said.

Moving forward, CFO Lee Kit Seong said while the business was “fairly stable”, external factors such as global trade tensions could impact growth. “We expect to be able to maintain our financial performance this year,” he said.

On capital expenditure, he noted the company was on track for its planned investment of RM150mil between FY18 and FY20.

This year, he says the investments would be focused on executing improvements to its IT infrastructure as well as fintech and digital solutions.

The company also announced the appointment of its new MD, Yuro Kisaka, who was previously MD of Aeon Microfinance (Myanmar) Co Ltd. He takes over from Kenji Fujita who has taken on a new role in Aeon Thailand.

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