In just two years, El Corte Inglés has financed 1,372 million euros in purchases outside its commercial universe, according to reports Expansion. All for allowing you to use your card anywhere in the world. A silent transformation that has made these department stores an unexpected rival for traditional banks and Fintech emerging.
Why is it important. With 11.7 million cards in circulation, the chain has converted its loyalty program of the sixties into a powerful financial weapon. Has moved more money than many Fintech that aspire to revolutionize the sector.
The transformation. The change arrived in 2022 Thanks to an agreement with Mastercard. For the first time in its history, the card was the surroundings of the department stores to compete with the banks in neutral territory.
The strategy is being a success. They maintain traditional advantages (interestless payments up to 60 days in ECI, 30 in other shops) but add functionalities Fintech: mobile application, notifications Pushcontrol of limits and geolocated promotions.
The numbers. The total volume of the card reached 3,778 million euros in 2023, adding internal and external purchases. It is far from the 2018 record (4,895 million), but the new modality is growing.
- 1,372 million financed outside ECI in two years.
- Only 191 million in modality Revolving (Interest of 19.56% TAE).
- Free: without issuance or maintenance expenses.
- 4% bonus in Repsol for future purchases.
The play. The English Court already had the largest loyalty clients in Spain. I just needed to open the doors. A much more interesting and advantageous play than the Fintech forced to find users from scratch.
Yes, but. His proposal remains conservative. The revolving model barely represents 5% of the business, well below the standards Fintech. They prefer the safe margin of the interestless interest that monetize via cross consumption.
The threat. For traditional banks, the English Court represents something worse than a Fintech Disruptive: a competitor with financial muscle, a huge customer base and brand credibility built for decades. Financiera El Corte Inglés, 51% controlled by Santander since 2013is the giant of consumption financing in Spain.
In perspective. The chain has achieved what many financial startups only dream of: monetizing an existing user base without burning millions of euros in marketing. Its competitive advantage is not so much the technology and the confidence of 11.7 million Spaniards who already carry their card in the portfolio.
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Outstanding image | Financiera El Corte Inglés
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