StanChart brings new credit card with attractive benefits

Standard Chartered has launched a new credit card in Bangladesh to provide customers with a host of attractive benefits, including instant cash-back.

The London-based bank introduced the Standard Chartered Titanium credit card from MasterCard at a programme in Dhaka on Thursday. The bank made the official announcement yesterday.

The cardholders will get an automatic cash-back of 7.5 percent on grocery bills, 5 percent on the spending at hotels and restaurants, and 2 percent on all other purchases, including those bought online.

In a full year, a cardholder can earn up to Tk 24,000 in cash-back with an annual fee of Tk 5,000.

Besides, cardholders will enjoy discounts at 15,000 merchant outlets, including hotels, restaurants, spas and medical centres in Singapore, Thailand, Indonesia, Malaysia, Hong Kong and Brunei, thanks to Standard Chartered Bangladesh's cross-border deals in those markets.

The cardholders will get free access to Balaka lounge at Hazrat Shahjalal International Airport and be entitled to existing discounts and benefits and an insurance coverage of Tk 10 lakh.

All existing credit cardholders of the bank can keep their cards and sign up for the Titanium cards at only Tk 2,000, and supplementary cards for their spouses at Tk 1,000.

“The card is the next stage of evolution and another innovation for the Bangladesh market,” said Aditya Mandloi, head of retail banking for the bank in Bangladesh. “This will give customers instant gratification and offer something for everyone.”

He hopes the new card would boost the bank's retail banking business in Bangladesh where the bank has 110,000 credit cardholders, with a 23 percent market share in cards outstanding.

In an interview with The Daily Star last week, Mandloi said Bangladesh's retail banking segment offers tremendous opportunities for banks on the back of steady economic growth of the country and a large youth population.

“One of the biggest opportunities in Bangladesh is in the retail space,” he said, adding that bank focuses more on the segment.

Mandloi, who has more than 18 years of experience in the bank, said he is positive about the country's growth prospects. Bangladesh's economy will continue to grow at a higher rate, irrespective of turbulence in the global markets, he said. The ongoing infrastructure projects will further accelerate growth, he added. 

“We are bringing in more and more innovations. We are investing more and more. We are looking to grow as the economy grows. We are very bullish about the country.”

He said the entire wealth management aspect will evolve and emerge in a strong manner, encompassing the investment services and insurance.

He said insurance penetration against risks is very minimal now, but it can evolve in Bangladesh.

“If that happens, you will have a very robust sector,” he said, adding that the role of banks will be that of distribution agents for insurance companies.

Mandloi said evolution of the stockmarket and mutual fund industry and the availability of wealth management products will emerge as a boost for retail banking.

He said the bank has a very strong base in Bangladesh, thanks to its presence in the market for 111 years. The lower cost of deposits helps the bank offer attractive rates of interest to customers for all retail products.

Its interest rate for retail products, such as home loans, auto loans or personal loans, is the lowest in the market, he said.

The Asia-focused bank rolled out credit cards in Bangladesh 20 years ago -- the first bank to do so. Within this realm, it was the first to introduce reward point schemes and easy payment schemes here as well.   The Titanium card is chip-based, which is a more secure security feature.

The bank has rolled out the migration to chip cards for the existing cardholders and plans to bring all cardholders under the chip-based system within this year.  

In Bangladesh, retail banking is an emerging filed, while most banks are focused on corporate and SME sectors. These banks are now gearing for retail banking, he said.

In the West, many cardholders have defaulted on their payments in recent times of financial crisis. But Mandloi said the Bangladesh market has not seen such a credit crisis.

He said the number of online transactions is still very low across the industry, which will slowly go up.

fazlur.rahman@thedailystar.net