Co-branded cards, product innovations, tapping urban masses for credit cards, and expanding geographically will be its major focus areas this year.
MUMBAI: British banking major Barclays plans to expand its credit card business in India in a big way. Co-branded cards, product innovations, tapping urban masses for credit cards, and expanding geographically will be its major focus areas this year.
“We aim to be one of the top players in credit-card business in 2-3 years,” said Kusal Roy, head of cards, India, Barclays.
The bank has decided to bring in $70 million into India in a year to fund its retail banking and credit card foray.The bank started its credit card business in May 2007. It has sold over 1,00,000 credit cards till date.
Barclays charges 2.95% interest per month, much lower than other banks in the country.The UK bank is also looking at luring customers with innovative features, reward points and discounts.
“We plan to tie-up with various online portals, airlines and hotels to promote our card business. We are also looking at cross-selling,” Roy said. Barclays will also rope up with banks for ATM sharing this year.
In order to keep a check on on defaults arising out of credit card business, the bank has set up a special credit bureau that will look at a customer’s creditworthiness before issuing cards.
Expanding geographically will also be on the cards. Currently, the bank has launched its credit cards in Mumbai, Delhi, Pune, Bangalore and Ahmedabad. “Most banks have their operations in at least 30-35 cities throughout India. We plan to get there by the end of this year,” Roy added.
Apart from India, Barclays is also looking at starting operations in other emerging markets. “We will kick off our credit card business in emerging markets of Asia and Africa,” Roy said.
Seeking to shed the image that foreign banks cater only to the elite classes, Barclays plans to target the masses, too.
“We plan to reach out to the urban population for now, and then target rural masses. We are not looking at Kisan credit cards for farmers or other offerings targeted at the lower income sections,” Roy said.
While banks like State Bank of India have outsourced their credit card operations, Barclays has decided to keep it with the bank. “All those hired and those who will be hired to carry on our credit card operations will be on the payrolls of the bank,” Roy said.
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