HONG KONG, June 14, 2016 /PRNewswire/ --
Credit card customers in Hong Kong show financial discipline when using their cards, with 86% of cardholders indicating they pay off their credit card bills in full every month, according to the inaugural J.D. Power 2016 Hong Kong Credit Card Satisfaction StudySM, released today.
Cardholders in Hong Kong are significantly more disciplined in terms of debt avoidance than their counterparts in the United States, where 57% of customers pay their credit card bills in full each month, Australia (56%) and Singapore (80%).
Yet even as Hong Kong cardholders fare well in avoiding debt, their levels of understanding of credit card terms are contrastingly low. The study finds that nine in 10 cardholders say they do not fully understand their cards' terms. Moreover, two-thirds of cardholders say they do not thoroughly understand the process of earning and redeeming credit card rewards, indicating wasted opportunities for cardholders to yield the maximum value from their cards.
The inaugural research, modelled after the established study that has been conducted for a decade in the United States, measures customer satisfaction with their primary credit card issuer by examining six key factors: interaction; credit card terms; billing and payment; rewards; benefits and services; and problem resolution. Satisfaction is calculated on a 1,000-point scale.
"Considering that card issuers in Hong Kong are vigorously promoting the advantages of their cards, it is disappointing to see that so few people know how to make the most of the rewards programme they have joined," said Dr. Gordon Shields, director at J.D. Power. "That said, there is considerable incentive for banks to communicate with and inform their customers more effectively: those who are familiar with their cards' terms and rewards programmes are significantly more satisfied with their card issuers; spend more money on them; and are more likely to recommend them to others."
Overall, there is a 36-point gap in satisfaction between customers who fully understand their card terms (728) and those who do not (692). With respect to awareness of benefits attached to the card, there is an upswing in monthly spend of HK$2,168 amongst the 27% of cardholders who are aware of having seven or more benefits.
Study Rankings
American Express ranks highest in credit card satisfaction with an overall score of 745. American Express performs particularly well across all six factors in the study. DBS, a relatively new entrant into Hong Kong, ranks second with a score of 693, while HSBC follows closely at 691.
ADDITIONAL FINDINGS
The 2016 Hong Kong Credit Card Satisfaction Study is based on responses from 2,878 credit card customers. Coverage includes 10 major credit card issuers, nine of which are rank eligible, in the market with scores based on the cardholder's primary card used. The study was fielded in April and May 2016.
Media Relations Contacts
Wai Hoi Tsang; Ketchum, Hong Kong; +852-3141-8110; wai-hoi.tsang@ketchum.com
Crystal Tang; Ketchum, Hong Kong; +852-3141-8101; crystal.tang@ketchum.com
XingTi Liu; J.D. Power; Singapore; +65-6733-8980; xingti.liu@jdpower.com.sg
John Tews; J.D. Power; Troy, Michigan USA; +1-248-680-6218; john.tews@jdpa.com
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