Hyderabad, India – City Union Bank (CUB) has unveiled a strategic partnership with the iconic Chennai Super Kings (CSK) cricket franchise, launching a co-branded credit card designed to merge financial convenience with exclusive fan experiences. This move, announced Monday, aims to bolster customer loyalty and expand CUB’s financial product offerings.
A Winning Partnership: Financial Flexibility Meets Cricket Passion
The City Union Bank – Chennai Super Kings Co-Branded Credit Card promises to deliver a unique blend of financial flexibility, rewarding benefits, and unparalleled fan experiences. The partnership leverages CSK’s immense popularity, particularly in Tamil Nadu, to attract and retain customers.
“We are excited to bring our fans a state-of-the-art credit card that blends the energy of CSK with the financial services of CUB,” stated Dr. N. Kamakodi, MD and CEO of CUB, emphasizing the synergy between the two brands.
Vijay Anandh, Executive Director of City Union Bank, highlighted the visual appeal of the new card, stating, “By this strategic partnership with CSK, our customers will be happy to receive the yellow-colored co-branded credit cards with CUB and CSK logo.”
K.S. Viswanathan, CEO of CSK, echoed the sentiment, saying, “With the launch of the co-branded credit card, we can now offer an additional way for our fans to celebrate their passion for the team while enjoying special benefits.”
Addressing a Market Gap: Customer Retention Strategy
CUB’s decision to launch a credit card stems from a recognized need to retain its liability customers. Dr. N. Kamakodi explained that a significant number of existing customers were opting for credit cards from other banks, posing a risk of customer attrition.
“We found that a significant number of our existing liability customers were taking credit cards from other banks, increasing the risk of losing them. To bridge that gap, we identified credit cards as a missing product in our portfolio,” Kamakodi stated.
The collaboration with CSK is a strategic move to capitalize on the franchise’s strong regional brand appeal and drive adoption among its target audience.
Strategic Focus Remains on Secured Retail Lending
Despite the launch of the co-branded credit card, CUB maintains its commitment to secured retail lending. Kamakodi clarified that the credit card product is primarily a customer retention tool, not a pivot towards aggressive expansion into unsecured lending.
“The credit card portfolio will remain under 1% of the bank’s overall loan book, with at least 80% of the cards issued to existing customers,” he emphasized. This approach underscores CUB’s prudent strategy of leveraging the credit card to strengthen customer relationships within its existing framework.
