Hsbc May Replace Atm Cards With Debit Cards

HSBC is looking to phase out its ATM cards and replace them with debit cards, which will be launched by the bank on September 1.

It is also exploring the possibilities of tying up with other banks for sharing ATM networks.

The debit card can be used for purchases as well as for conducting ATM transactions in India and overseas.

HSBC's senior personal banking manager S B Kulkarni said, "There will be a shift gradually to debit cards as they hold much value. ATM cards will be offered to people who are not interested in shifting towards debit cards."

A host of private sector and public sector banks and foreign banks have already launched their debit cards in the country.

On the question of late entry of HSBC into the debit card arena Kulkarni said," In India around 90 per cent of the transactions are based on cash. There is a tremendous opportunity still available. Debit card is the next level after ATM cards. Also customers want to carry minimal plastic which would have the widest variety of uses."

"The bank is looking at the possibility of tying up with other private sector banks for sharing ATM network. However no decision has been made," said HSBC's chief executive officer Z J Cama.

HSBC has a network of around 127 ATMs and 29 branches. Private sector banks such as ICICI Bank, UTI Bank and HDFC Bank have set up huge ATM networks across the country.

Observers feel that these bank will tie-up with other banks in order to use their ATM network.

HSBC has around 8,00,000 retail customers of which 4,00,000 are savings accounts. The bank is growing at a rate of 35 to 40 per cent per annum. Kulkarni added that debit card will act as a good acquisition tool as well.

The bank has around 5,50,000 credit card customers and these are also growing at a compounded annual rate of around 30 per cent said Kulkarni.