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Informist, Tuesday, Aug. 18, 2026

NEW DELHI – The public sector banks will focus on co-branded cards and technological improvements over the medium term to achieve scale and momentum in the credit card business. During the two-day-long seminar on the banking sector, the public sector banks dwelled on end-to-end digital customer onboarding, usage of artificial intelligence for fraud detection and tapping premium as well as micro, small and medium enterprise customers.

The senior executives of banks believe smaller state-owned banks can partner with larger peers having card capabilities to issue co-branded cards by leveraging each other's customer base and distribution network. On Monday, Department of Financial Services Secretary Sanjay Lohia had said that banks need to reimagine the credit card business as customer behaviour, technology, and competition are changing rapidly. Public sector banks need to examine how they can build stronger propositions in the credit card business while maintaining responsible underwriting, customer protection, and appropriate risk controls, he had said.

Banks will also work on improving the financial literacy among first-time users who face difficulty with understanding credit card terms and conditions as this increases the risk of unintended financial stress for the segment. The banks may look at mandating small informative videos in regional languages before card activation.

In order to overcome inadequate transaction data availability, banks will also tap customers through goods and services tax and unified payments interface transaction data for pre-qualified differentiated card propositions. Banks may also use spending patterns to customise reward system and develop multiple variants of cards to suit the needs of different customer segments.  End

Reported by Priyasmita Dutta and Sagar Sen

Edited by Deepshikha Bhardwaj

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