Unionbank launches Shell cobranded card

Union Bank of the Philippines (Unionbank) announced its target to have at least 200,000 cardholders for its cobranded offering with Shell Pilipinas Corp. (SPC) by 2027, following the launch of a credit card, according to a report by BusinessMirror.

“The cards business actually is one of the businesses that is doing extremely well,” Unionbank Head of Consumer Banking Manoj Varma told reporters on the sidelines of the launch last Friday.

Overall, Unionbank has 1.7 million credit cardholders to date, according to Varma. Its cobrand customers with SPC alone now count at around 100,000, he added.

“We expect that this [cobrand] program [together with Shell], with the new features, we want to double it in the next three years. So that’s what our goal is,” Varma said of the credit card. “This partnership we’ve had more than 25 years now is one of the most successful cobrand partnerships that any bank has had because of the value that it provides.”

The executive said users of the cobranded credit card can expect perks and benefits. By fueling up at any SPC station in the country, cardholders can save up to P15,000 annually on Shell fuel-related expenses alone, Varma said. With rebates of 5 percent or up to P4 off per liter on SPC fuels, a 10-percent discount on lubricants in SPC stations through “Shell Go ” and 5-percent rebate on toll and auto shops nationwide, the savings quickly add up, he added.

Those applying exclusively at any SPC station can expect an P8 discount per liter on their first fuel purchase, Varma said. What’s more, zero annual fees for life can be enjoyed by those who apply during the promotional period ending April 30, 2024, he added.

Given such benefits, Varma is confident of reaching their 2027 goal as they are attractive for existing and new cardholders to avail of their latest product since many Filipinos are now looking to save more when it comes to their fuel expenditures amid the unabated oil price hike.

“We feel that this will actually help improve the profitability of the customers and the portfolio that we are acquiring,” Varma said. “We do also expect that there will be more customers taking it, and there will be more usage, more customers swiping it every day.”

According to him, Unionbank is currently No. 1 in the country in terms of spend per card—about 1.8 times s than the industry average.

“So we are hoping that these new features will help us improve that spend per card even more—apart from getting more customers,” Varma said.