TEMPO.CO, Jakarta - The Indonesian Credit Card Association (AKKI) noted that credit card growth has slowed in recent years. The association assessed that the situation comes with the change in consumers' behavior along with technological developments.
AKKI chairman Steve Marta said that most consumers now want quick services, which is difficult for card issuers to adopt. The need is answered by fintech, whose "approval process is a lot faster than credit cards' application process," he said.
According to Bank Indonesia's data, credit card transaction value grew 4.52 percent (yoy) to Rp29.3 trillion in October, slower compared to October 2018's growth rate of 9.7 percent.
In the same period, credit card transaction volume also grew at a slower rate of just 1.61 percent (yoy), far behind October 2018's transaction growth of 5.15 percent.
In the long run, Steve said, banks as credit card issuers must adapt quickly. Virtual credit cards can be a solution to keep the credit distribution business in demand.