India Credit Cards Review, Advise & Market Research
State owned Central Bank of India has embarked on an innovative product for Indian Consumers – Debit Cum Credit Card which will be launched very shortly according to the management of the bank in a release to CardBhai. The Card will automatically act as a Credit Card when Customer’s Bank account Runs out of Funds which is linked to the Debit Card.
S Das Gupta GM of Cards Division told,
Read moreCentral Bank of India to Launch – Debit Cum Credit Card
In our previous article we presented that Credit Cards is the Next Big Product for Banks contributing to Banks Bottom-line in the Wealth Management Segment. Today we’d like to analyze on the basis of Data which Banks are Leading the Credit Cards Business Segment in India.
HDFC Bank, SBI and ICICI Bank seem set to lead this business. The share from this business is likely to be most significant to HDFC Bank (over 15% of fee income) given its high market share in credit card transactions or volumes. For most other banks, the share of this business is relatively lower at less than 10% of
Read moreWhich Banks in India Lead the Credit Card Portfolio ?
We see an opportunity for Indian banks from the shift towards newer and inexpensive payment platforms and better penetration of non- balance sheet products like Credit Cards. Banks that make money through ATM interchange fees are likely to see higher income through debit / credit card transactions. On the other hand, a strong retail customer base, new products and focus can provide healthy wealth-management business.
Penetration levels have improved for debit cards (~40% of savings account customers) and a proper incentive structure should enable strong growth in fee income for all banks. We notice most of the fee income generated in the cards portfolio coming
Read moreStrong Credit Card Portfolio – Next Leg of Growth for Banks
India’s Second Largest Credit Card issued – ICICI Bank just a while ago took the decision to move towards more secured EMV based Chip cards. ICICI Bank has a portfolio of 2.8 Mn Cards which includes VIA and MasterCard as well as the ones issued as Co-Branded Cards.
How are EMV Credit Cards Secure ?
As seen in the picture above, they come equipped with a Microchip [Gold in Color] which has encoded data that earlier was available on the Magentic Stripe. Only the Card Reader has
State Owned Vijaya Bank just a while ago announced the launch of two new types of Credit Cards for its Banking Customers – V-Platinum and V-Privilege Credit Cards.
Features of Vijaya Bank’s V-Platinum Credit Card
This card is intended for HNI customers of the Bank. Minimum Credit Limit will be Rs 200,000 with no maximum pre-set spending limit. The card will be issued based on net-worthiness and Income of the Customer. Minimum Bill Payment will be 25% of the outstanding. The bank is planning to issue 10,000 of these cards.
Vijaya Bank currently has 100,000 Credit Card
Read moreVijaya Bank Launches V-Platinum, V-Privilege Credit Cards
Today I’d like to educate our Readers on what a Secured Credit Card means, its availability in India and who can avail the same.
Like any other industry, Credit Cards vertical of the banking industry had a bumpy ride since its off-take in 2005 and subsequent bust in 2008-09. Credit Cards by nature are classified as unsecured loans to consumers. The Issuing Banks Guarantees the Merchant on behalf of the credit card holders and settles with the merchant hoping the consumer will pay his credit card bill. Blame it on negligence or circumstances or willfully, many people defaulted for example ICICI Bank had to drastically re-structure its Credit Card Portfolio. Thus this gave rise to a new stream of credit cards known as Secured Credit Cards.
So what Exactly is a Secured Credit Card ? It is a normal Credit Card in all respects except that it is issued only against a Fixed Deposit with the Bank. For Example, we chose