BoB Card Targets Health, Insurance for Niche Growth Amidst Luxury Focus
Overview
Bank of Baroda's credit card arm, BoB Card, is diverging from the premium luxury rewards trend. The issuer is focusing on healthcare, wellness, and insurance-led benefits, targeting specific customer segments like women, Gen Z, and professionals with specialized cards. This strategy aims to carve a niche by offering tailored benefits, addressing rising medical costs and evolving consumer preferences.
Strategic Shift to Niche Benefits
BoB Card is charting a distinct course in the competitive credit card market, moving away from the prevalent focus on luxury rewards. Instead, the Bank of Baroda subsidiary is betting on healthcare, wellness, and insurance-linked advantages to attract and retain customers. This strategic pivot targets specific demographic groups, including women, young professionals, and uniformed personnel, with bespoke card offerings.
Tailored Products for Specific Needs
Rising healthcare costs and shifting consumer priorities are driving BoB Card towards cohort-specific products. The recently unveiled Tiara credit card exemplifies this approach, offering women free annual health check-ups like pap smears and mammograms, alongside lifestyle perks valued up to ₹31,000. "The next big thing is health because healthcare has become very expensive," stated Ravindra Rai M, MD and CEO of BoB Card. The company plans to broaden partnerships with insurance, healthcare, and wellness providers.
Beyond Generic Rewards
For professions such as army and police personnel, BoB Card has introduced insurance coverage activated by card usage. These specialized cards often include add-on family cards, reward points, and lounge access, demonstrating a departure from one-size-fits-all solutions. Rai elaborated that these initiatives, including hospital tie-ups for diagnostics, are performing well. This includes partnerships for diagnostics and free testing services.
Targeting Diverse Customer Cohorts
While premium cardholders continue to be a focus for high spending, BoB Card's broader strategy is segment-driven. Products like a card for chartered accountants and the instant cashback Boomerang card for digitally savvy Gen Z users are part of this initiative. Young customers, Rai noted, often prefer lifestyle benefits such as concert tickets or travel over traditional luxury perks like golf club memberships, highlighting the need for personalized offerings. "Issuers need to relook at their strategies... ‘one-size-fits-all’ has gone out of the window."
Rebranding and Fintech Partnerships
Formerly known as Bob Financial, the company rebranded to BoB Card in January 2024 to clarify its identity as a dedicated credit card issuer. The rebranding, along with the tagline ‘reimagining credit,’ aims to shed the perception of being a slow-moving public sector entity. Innovative, segment-specific products are being developed through partnerships, particularly with fintech companies like OneCard, Uni, and Scapia, to enhance flexibility and speed.
Growth Ambitions and Capital Infusion
As one of India's two standalone credit card issuers, alongside SBI Card, BoB Card is pursuing aggressive growth. The company aims to be among the top five issuers nationally within the next two to three years, targeting 2027-2028. To fuel this expansion, BoB Card secured ₹350 crore in 2024 and anticipates further capital from its promoter. Investments in technology are supporting enhanced underwriting, simplified onboarding, improved customer service, and EMI-led transactions.
Market Position and Financials
As of November 2025, BoB Card held 3 million cards-in-force, ranking ninth among issuers. Monthly spends reached ₹3,338 crore, a 17.6% year-on-year increase. The company reported a net profit of ₹23.22 crore for the first half of the current financial year, a decrease of 9.1% from the prior year. Average net receivables grew 17% to ₹6,257 crore.
