4 Metrics UAE Banks Compete On for Credit Card Rewards
We dove into the data to uncover which banks are standing out and how their offerings stack up.
The credit card market in the UAE is as competitive as ever. Here are the key insights you need to know:
🔥 1. Card Feature Heatmap
Our heatmap of card features highlights significant differences in offerings like travel perks and lounge access. Certain banks are leading with feature-rich cards, while others focus on niche categories.
Why it matters: Customers are drawn to differentiation. Adding high-demand features like travel or strong local dining benefits often become the deciding factor in which card to choose.
✈️ 2. Spend and Rewards Required to Justify Fees
When it comes to earning back annual fees through airline miles, cards vary significantly in the required spending thresholds. We take a look taking into consideration welcome rewards.
Why it matters: Customers are savvy. Simplifying rewards and reducing "break-even" spending thresholds could improve uptake.
💳 3. Rewards vs. Annual Fees: Are Customers Getting Value?
We compared Estimated Rewards Rates (a proprietary calculation across all reward types) to Annual Fees for major credit cards. The data shows that while some banks offer high rewards for premium cards, others might struggle to justify their fees.
Why it matters: Banks that optimize rewards-to-fee ratios are winning customer loyalty. If your cards fall short here, it might be time to rethink pricing or perks.
🏦 4. Minimum Income Thresholds
Income requirements reveals clear segmentation:
Platinum and Infinite Cards: Targeting high-income customers.
Islamic and Standard Cards: Lower entry requirements, appealing to broader demographics.
Why it matters: Ensuring your card portfolio aligns with customer income brackets is key to increasing accessibility and conversions.
These insights are just the tip of the iceberg. Want to know more about how competitor cards stack up? Let’s chat on LinkedIn.
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-Ralph