AU Small Finance Bank has launched a new tiered credit card lineup designed to capture spending from both first-time users and premium retail customers.
The Indian lender, which operates as the country’s largest small finance bank, is using the product expansion to diversify its fee income and strengthen its position in the competitive consumer credit market.
The move marks a strategic shift for the bank, which has previously focused heavily on deposit gathering and micro-lending.
By introducing transparent fee structures and targeted rewards, AU Small Finance Bank aims to attract a broader demographic that has historically been underserved by traditional private banks.
This aligns with the institution’s longer-term ambition to transition into a universal bank, a status for which it recently received in-principle approval from regulators.
The credit card launch follows a series of product introductions by the bank, including a recent partnership with Zaggle Prepaid Ocean Services Ltd to issue co-branded retail cards on Visa and RuPay networks.