Launching The Credit Card in Singapore

in Singapore
Citibank Global Consumer Banking Division began in 1982 The 1st of four Bank to be rewarded the Qualifying Full Bank in 1999 Awarded the people developer standard by SPRING (Standard, Productivity and Innovation Board) in 2003 Citibank announced its move to incorporate a wholly owned subsidiary of citigroup in Singapore, know as citibank Singapore Ltd, in June 2004

Products
CitiOne Account Mortgage Power Citibank Auto Loan Citibank Ready Credit CitiGold Service
CitiPhone Banking

ATM
Business Banking Citibank NRI Business International Personal

Banking

Singapore Profile (1988)

No. of branches 3

No. of Bank Customers (000)

No. of Bank Accounts (000) No. of Citigold Customers No. of IPB Customers

18
67 1,300 12,800

No. of Autoloan Customers

No. of Mortgage Customers No. of Card Customers % of Bank Customers Owning Citibank Card

110
3 ---

Net Revenue From Fund ($ Millions)

Average Annual Customers Income (US$) Average Customers Bank Balance (US$)

11
$ 25,000 $13,000

Goals and Challenges

Consider to launch new product (Credit Card) as a way of growing future revenues, from $ 69,7 million in1988 to become $ 100 million in 1990.
Rana Talwar, Head of Citibank Asia Pacific Consumer Bank

According to Dave Smith, Country Manager for Singapore We have a small two million population and an already saturated card market. Moreover, American Express has the market in its pocket. Entering this market this late will most likely result in us losing money. We can do without this distraction from our main banking business

Credit Card Business Opportunity

By 1989, Singaporean were quite familiar with Credit Cards Cardholder owning an average of two Credit Cards each and with nearly 500,000 Card in force. Consumer viewed Credit Cards as vehicles of convenience and a status symbol. When choosing a Card, Consumers will consider the reputation of the issuing bank, worldwide acceptance and outstanding global service. In consumers minds, Cards fell into 3 categories ; 1. American Express 2. Hong Kong Bank, Chase and Standard Chartered Bank 3. Local Bank (UOB, DBS, OUB and OCBC)

Recommendation for
go-ahead to launch the Credit Card in Singapore Pricing of the Card Product must be lower than American Express Using local system to speed up the process and services 1st Entry Strategy : Cross sell with existing Banking customers. 2nd ; Direct mail, Take ones, Direct Sales and Bind-Ins. 3rd ; acquiring existing card portfolio from another company 4th ; cooperation with local company (mass transportation or department stores)

Thank You