MILLENNIALS’ increasing preference for online shopping has led to a 26% rise in credit card spending among cardmembers aged between 26 and 35 years old in the first six months of 2016, according to recent data from United Overseas Bank (M) Bhd. This is compared with the same period the year before.
The UOB Malaysia data on the spending habits of the bank’s millennial cardmembers showed a 38% growth in online spending over the same period.
The data also showed that as digital natives who grew up with the Internet, the millennials mainly used their credit cards online to buy airline tickets and book hotel accommodation for their travels.
They also used their credit cards to purchase goods from fashion and retail stores over the worldwide web.
Overall, UOB Malaysia’s millennial cardmembers spent more online compared with other age groups.
In the first six months of 2016, they spent 1.4 times more on online purchases compared with other age groups.
UOB Malaysia managing director and Personal Financial Services country head Ronnie Lim said millennials’ spending habits would dictate and shape the consumer market as they will soon make up the largest demographic of consumers in the country.
“Millennial spending currently accounts for more than one-third of overall credit card spend across our customer base.
“They are also spending at a faster rate than other age groups.
“The volume of credit card spending among millennials was five times higher than that of customers above the age of 35 in the first six months of 2016 compared with a year ago.
“We aim to grow this base of our customers by 20% within a year by focusing more on how we can meet the banking and lifestyle needs of these millennials through carefully calibrated products,” Lim said.
UOB Malaysia’s first such product for millennials is the UOB YOLO credit card.
The essence of the card is encapsulated in the millennial mantra “You only live once”.
In line with the mantra, UOB aims to enhance millennials’ lifestyle choices and preferences through a host of cash-back offers and exclusive deals.
Recognising that millennials are spending more online, the UOB YOLO helps to make their money work harder for them with up to 6% in cash rebates on all online purchases and up to 3% rebate for dining.
Additionally, UOB YOLO cardholders will enjoy exclusive deals at leading food and beverage stores and GSC cinemas.
The UOB YOLO also features South-East Asia’s first “quick read” card face, designed to make customers’ e-commerce experience more convenient.
Instead of the 16-digit card number laid out in a horizontal line, the card numbers are laid out in a four-by- four stack on the top right hand corner of the card, making it easier for customers to read when conducting online transactions.
“The UOB YOLO is part of the bank’s larger strategy to meet the lifestyle needs of young professionals in Malaysia.
“It demonstrates our commitment to enhance their experience with us.
“Most 18 to 35 year olds are just starting out in their careers and in pursuit of their life’s goals.
“To help these millennials live out their lifestyle choices while making their money go further, we introduced UOB YOLO.
“Through its range of cash-back offers, rebates and vendor discounts, we hope to encourage a culture of wise spending among this group of customers,” concluded Lim.