‘Credit cards has changed lifestyle, consumer behaviour’

Credit cards have changed how people manage their finances, make purchases and interact with the economy, leading to significant changes in lifestyle and consumer behaviour, said Md Mostaque Ahmed, the deputy managing director and chief emerging market officer of Dhaka Bank PLC, during an interview with The Business Post.

How is your card changing people's lives and impacting lifestyles?

Card transactions have changed people's lives by making them more convenient and secure. They have fuelled e-commerce and promoted financial inclusion by providing access to banking services. Card providers offer online platforms and reward programmes to encourage usage.

Not just using at home, credit cards have become an important tool for visiting abroad. Cards help us to make online payments at home and abroad including payment of various fees. However, cards can lead to increased spending if not managed responsibly.

Overall, cards have transformed how people manage their finances, make purchases and interact with the economy, leading to significant changes in lifestyle and consumer behaviour.

How can users manage credit cards wisely, as it involves our monthly expenditures as well?

To manage credit cards responsibly, you should create a monthly budget, allocate funds for necessities and discretionary spending, monitor transactions regularly, pay balances in full each month, and set up automatic payments.

Avoid impulse purchases and finance items beyond your means. Familiarise yourself with your card's terms and conditions, including interest rates, fees, grace periods and reward programmes. Avoid cash advances unless absolutely necessary. By following these tips, you can effectively manage your monthly expenditures and avoid the pitfalls of credit card debt.

How do you think one can become a wise and sustainable credit card customer?

To be a wise and sustainable credit card customer, follow these strategies: select a card that aligns with your financial goals, consider factors like interest rates, annual fees and reward programmes, and carefully review the terms and conditions of your card agreement.

Only use your card for planned expenses, pay it off in full each month, monitor your spending regularly, pay your bill on time, and set up automatic payments. Be mindful of fees associated with your card, such as annual, foreign transaction and cash advance fees, and minimise them by choosing a card with low or no fees.

How is Dhaka Bank doing when it comes to credit cards? Is the number of customers growing?

We have recently launched MasterCard and Visa co-branded credit cards with several reputed companies, associations and social clubs for the first time in the market. We are getting a huge response to these.

Apart from this, customers have great interest in our cards as they have various offers. These initiatives are playing a vital role in growing our business rapidly. We have arranged for card issuance among Dhaka Bank's payroll customers and deposit and loan customers and employees of our corporate clients by receiving a few documents quickly.

We have an efficient sales team and a network of more than 150 branches. We have also taken measures to increase the sale of cards through various marketing campaigns.