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Transcript of cards prez
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TheThe FutureFuture
PerfectPerfectCredit CardsCredit Cards
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1.Market2. Competition scan
3. Opportunities4. Positioning Strategy
TheThe CContentsontents
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Socio-economicclasses
E2
E1
D
C
B
A2
A1
Numberof people
Millions
10.3
8.2
9.2
8.1
4.1
1.3
1.0
Targetcustomers1.8 millionpeople
The 3 large
cities haveapproximately 1.8million businessClass Karachi Lahore Islamabad
Business classcustomersareA and Bclasses: A class is themajor sourceofdepositsfor ABNAMRO
B class is themainborrower for
ABN AMRO
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50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
CIF
Visa 197,000 231,000 349,000
MasterCard 194,000 255,000 273,000
1 2 3
2002 2003 2004
TheThe MarketMarket
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1. Market
2.Competitionscan3. Opportunities
4. Positioning Strategy
TheThe CContentsontents
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All currency figures in PKR
TheThe CompetitionCompetitionscanscanCompetitorsFigure in Euros
Launched CardsInForce
Exposure(MN)
Utilization(MN)
Spend03
(MN)
Revolver
NCL Delinquency(30+)
Citi 1994 165,000 159 33% 117.60 65% 4% 6%
SCB 1996 160,000 118 30% 80.90 70% 1.5% 3.2%
Al-Falah 2000 200,000 222 20% 36.80 20% 1.5% 3.5%
Union 2003 100,000 96 25% 11.80 60% 3% 3.5%
Total725,000
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Union Citibank SCB BAF
Joining Fees (in Rs.) N/A N/A 500 N/A
Annual Fees (in Rs. p.a) Free Free Free Free
APR (in %) 27% 36% 28 & 36% 27%
BTF Interest Rate (% p.m) 18% 19% 12.5-16.5% 18%
All currency figures in PKR
TheThe CompetitionCompetitionscanscan
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1. Market
2. Competitionscan
3.Opportunities4. Positioning Strategy
TheThe contentscontents
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Low penetration of credit cards in target segments
The size of the market yet to be penetrated is approx1,450,000 individual
The carded population is approx 350,000 personsholding on the average of2 cards each
90% of our customer base have cards and 86% would bewilling to get an ABN AMRO credit card
Market expanding as credit rating services improve &bigger players enter
TheThe opportunitiesopportunities
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Low penetrationof credit cards in target segments
All cards in the market are currently vanilla cardswith unexciting loyalty programs
Gold isno longer anaspirational card- No Platinumin the market
Free for life offers in the market not financiallysustainable by banks
TheThe opportunitiesopportunities
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1. Market
2. Competitionscan
3. Opportunities
4.Positioning Strategy
TheThe contentscontents
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High
(Citibank/SCB)
Features MCB, Askari, Union
Bank AlFalah
Low High
Price
Proposed ABN AMROpositioning
TheTheP
ositioning strategyP
ositioning strategy
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What do customers want? Key survey
findings:
Value Enhancements
Discounts
Special Offers
Value chain, discounts & alliances
Zero cash withdrawal fee
Up front bonus points
Chip-based new shaped card
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Customer Needs and How Our Card Satisfies Them
Convenience facilities
Acceptability convenience
High limits
Inexpensive cash advances
Discounts Style/Prestige among peers
Free card
Utility bill payments facility / NSBC
Global MasterCard acceptability
Higher credit limits compared to industry avg.
Zero cash advance fee
Extensive discount/alliance program MC2 design, advanced chip system
Value chain program/Extensive discounts
and Monthly component of annual fee
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Customer Needs and How Our Card Satisfies Them
Entertainment
Club memberships
Priority services
Airport CIP Access
Travel related features
Access to clubs, cinemas etc
Access to exclusive clubs, etc
Van Gogh banking (Platinum)
Access to CIP/Van Gogh lounges worldwide
Extensive Air Miles program
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Card Features Classic Gold Platinum Phase 1 2005
Supplementary Cards with Flexi
Limits
Alliances per product variant
BTF @ subsidized rate
Installment Plan
Check Book Facility
Cash through ATMs/Branches
The featuresThe features
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Card Features Classic Gold Platinum Phase 1 2005
Concierge Service
Welcome Pack On CD On CD Leather Packs
Business Class Lounges
Cash Advance Limit 50-75% 50-75% 50-75%
Auto-Debit Facility
Automatic Enhancement 9 months 9 months 9 months
The featuresThe features
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Card Features Classic Gold Platinum Phase 1 Mid 2005
Comprehensive Travel Insurance
Credit Shield/Accident Cover
3rd partyPay
Order/Demand Draft
Cheque / Cash Pick up
Mobile POSMachines
Payment through Call Center
The featuresThe features
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Cust
r s
r
ic
ri
t
k
Convenient nk loc tions
Trust
ort
nk
o
i
en service c
r
es
orupper cl
ss
rov i
es personalized services
Offers
anyproducts
Reputablebank
knowledgeable staff
n international bank
rogressivebrand
Secure transactiononphone
Prov ides accurate
onthly
statements
Courteous &experience staff
andleproblemefficiently
Gooduseof tech foreasy
banking
Understandcustomers needs
Gives me recognitionFeel secure
Offers newproducts
Good telephonebanking
ABNAm r
it i BankSCB
Aska ri Bank
Un i
nBank
BankA lfalah
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
3
-3 -2 -1 0 1 2 3 4
TheThe ABN AMROABN AMROperceptionperception
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Accurate monthlystatements
Understandsandmeetscustomer needs
Good phone banking
services
Customer serviceorientedbank
Personalizedservices
Secure transactionsonphone
Key Associations for ABN:
TheThe ABN AMROABN AMROperceptionperception
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The Future Is Here.
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Microsoft Excel
Worksheet