Hongkong Bank Aims At 5 Lakh Credit Card Clients

The Hongkong and Shanghai Banking Corporation Ltd (Hongkong Bank) aims to reach a credit card subscriber base of five lakh by the turn of the century. To achieve the target, the company has chalked out an extensive marketing strategy built around more value added services to its card holders.

Speaking to Business Standard, Vivek Kudva, manager, card products division, Hongkong Bank, said the principal focus of the bank's credit card business would be to provide more value to the subscriber. For this, the bank has packaged its cards to suit multipurpose requirements like travel, shopping and leisure.

Hongkong Bank has identified three basic alliances for marketing these multi-purpose cards -- affinity cards with non-profit organisations, co-branded cards with commercial organisations, and block corporate memberships. Apart from these packages, the bank would also continue to market its cards in the mass segment.

 

As part of this new marketing initiative, the bank launched the country's first club credit card in association with the city-based Tollygunge Club last week. This card is also the first affinity card to be introduced in the country. The bank plans to expand its package of affinity cards to other clubs in the country as well as other non-profit institutions, said Kudva.

The Tollygunge Club credit card is a customised affinity card which will be offered exclusively to members of Tollygunge Club. All backroom processing with regard to payments at the club will now be handled through Hongkong Bank which will put the club's accounting on-line with its system. The card will also serve as an identity card on the club's premises.

The bank has also recently tied up with Thomas Cook and Shoppers' Stop to offer two co-branded cards. The Hongkong Bank-Thomas Cook international credit card is a travel card which aims to replace travellers cheques. Cardholders can avail of Thomas Cook's expertise in travel arrangements like airline tickets, hotel bookings and package tours.

With plans underway to expand its credit card base in the country, Hongkong Bank is also putting in place a more stringent credit realisation system to keep defaulting cardholders in check. Admitting that defaults in credit card payments is a problem in the country, Kudva said the bank would soon be taking steps to ensure that these problems do not intensify when its cardholder base increases in the future.