Motivations behind usage of Multiple Credit Cards by Banking Customers: An Empirical Study

Rapidly growing advancement of technology has brough lot of transformation in our everyday lives as well as it has also brought competition in banking industry. It is deceptive that banking institutes who are unable to match with these technological advancement and improvements of digital banking are facing the problem of not being able to compete the competitive market. An integral component of electronic banking is the credit card, which serves as a modern means of conducting financial transactions, replacing traditional paper currency. Given the current emphasis on customer-centric credit card services, it is imperative to identify the key factors influencing credit card ownership and usage for effective marketing strategies. Unlike in the past, when credit cards were considered a privilege of the elite or high-income individuals, they have now become accessible to a broader demographic. A sample of 330 respondents was collected from respondents who are using multiple credit cards. The factors that determine the motivation of using multiple credit cards by customers are Rewards and Benefits, Utilization, Building and Repairing of Credit, Diversification, and Interest Rate Optimization.