SBI Cards Business Model – SWOT Analysis

SBI Cards‘ outstanding card base has grown at a CAGR of 28% over FY15-FY2019 (vs industry CAGR of 22%) with market share of ~18% at Sep-19. With low credit card penetration in SBI customers, strong brand name and distribution, SBI Cards has potential to grow its card base at ~23% CAGR over the next 5 years leading to market share of ~22.5% by FY24. In this backdrop, we do a SWOT Analysis on the Business Model of the SBI Cards.

SBI Cards Strengths
The tutelage provided by SBI gives natural advantage to SBI Cards in growing its business. The advantages come in the form of brand, trust, access to vast customer base and distribution strength. For example: In FY19, 55% of the new customers were sourced from SBI’s customer base. With more than 20 years

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The Business of Credit Card in India Today – Part 1

The credit card base has grown at a 18% CAGR during FY14-FY18, the current credit card base is only 45mn – this compares to 210mn customers with a 700+ CIBIL score (Super-Prime, Prime Plus and Prime), implying a 20% penetration and massive headroom for growth while staying on the same risk curve.

2 Big Credit Card Business Models in India The primary business model is centered on internal-to-bank customers (in practice at larger banks) while a secondary business model is emerging around new-to-bank customers (in practice at mid-sized banks). Large banks with a sizeable customer franchise grow their credit card portfolio purely as a cross-sell offering to their

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How Credit / Debit Cards evolved to the Forefront of Payment System in India ?

Major players entered the Indian Plastic Money – Credit / Debit Card race only in 2002-03, even though the industry began as early as 1992. The first leg of growth took place during 2003-08. The introduction of lifetime free cards, coupled with an absence of credit bureaus, had dire consequences that played out during the global financial crisis. The industry has evolved today and the learnings of the past have paved the way for the next leg of growth, which is taking place right now.

Credit Card penetration in India is still extremely low at ~4-5% and one expects a few more years of strong growth in card additions. Credit Cards have growth ~3X in the past three years to ~46 mn while debit cards have grown even more rapidly at a ~48% CAGR to ~900 mn, the latter

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IVR Fraud Advisory – Intouch Concepts / MedCare India

SBI Card FraudsIn the last 2 years we have seen increasing number of Frauds that has happened with SBI Credit Card Consumers. We first alerted our readers about the IVR Credit Card Fraud in Nov-2013 and since then it has only grown as you can read here about SaporDeals and again here on SBI Cards.

Today a reader of our Advisory has written about IVR Fraud by Intouch Concepts / MedCare India operating from New Delhi. He writes as follows,

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SBI Raising Bills on Credit Card Never Delivered

SBI Credit CardA reader of our Financial Planning and Consumer Advisory Services has written his plight on how SBI GE Credit Cards division has duped him. The intent is to serve this as caution advisory on Banking Practices in violation of the RBI Guidelines.

SBI has started sending me statements charging fines on fines for the credit card which was never delivered, even when I had paid for it. They had forfeited my reward points without giving me any intimation and kept on lying that scheme continued when there was no scheme. Imagine when a complainant is a simple common man who can pursue with you or them, he must be ending up paying them extortion money to buy peace making them rich and comforting you. SBI Cards are the people who don’t think there is any consumer law in the country and they firmly believe that they can arm twist people and extract

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Why SBI Cards Refusing to Investigate Fraud / Disputed Credit Charges?

SBI Cards FraudA reader of our Esteemed Advisory Services is a victim of Fraud by SBI Credit Cards division to which he has disputed and appealed the case. However, SBI Cards is unwilling to investigate the case even though they have acknowledged payment to a non-existing company [company just on paper]. There are several mistakes on part of the SBI Cards Division as well but they are not willing to accept the same. We’d like to share the same with you all so that you beware before disclosing Credit Card Data to unknown persons via Phone call or e-mail or Mobile SMS etc.

Ref: Interaction Id- 1-453717563 ‘CaseID=007-045-677′ Re: CaseID=006-773-425′ Re: Reg : CreditCard FraudComplaint(CreditCard No – 4317 XXXX XX84 6119)
I am in receipt of the reply

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