Singer (Sri Lanka) has launched a credit card with Visa International as it expects its hire-purchase business to slow down in future, according to Asoka Pieris, Chief Executive Officer of Singer (Sri Lanka).
The company now has about 8,000 credit cards in issue, Pieris said at the investor forum organised by Asia Securities titled “Consumer & Retail Sector: Poised for a Shopping Spree” held as part of the brokerage’s Wealth Insights Series.
“Singer with Visa has launched a credit card because 5-10 years down line the hire-purchase business will slow down,” Pieris said. “Credit cards are going to take over Singers’ hire-purchase business.” The Singer branded credit card was launched in July through Singer Finance and can be obtained at any one of the 435 Singer and Singer Finance branches across the country.
Pieris said he expects spending on consumer durables to increase as disposable incomes improve.
He said the group’s finance business was careful during economic slowdowns and actually curtails lending in order to reduce exposure to bad loans. “During tighter economic conditions, demand for finance is greater but customer ability to repay is lower,” he said. “So we will pull back because we don’t want collection problems. Our control systems ensure there is a pull back and not give credit to consumers, although it should be the reverse theoretically.” He identified key trends in consumer spending with faster economic growth and rising affluence that will drive demand for consumer durables like refrigerators, washing machines, air conditioners and personal computers.