EBL credit card speaks customer's language

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FE Report
Ali Reza Iftekhar is in helm of the Eastern Bank Limited as Managing Director -- Current Charge. Eastern Bank Limited (EBL) is one of the modern, fully online and technologically superior private commercial Banks in Bangladesh. EBL markets a wide range of Personal, Corporate, SME, International Trade, Foreign Exchange, Lease Finance and Syndication services through a network of 25 Branches, 5 Kiosks & 61 ATMs countrywide. Eastern Bank has its presence in 10 major cities/towns in the country including Dhaka, Chittagong, Sylhet, Khulna and Rajshahi. Tracing its origin back to 1992, EBL is serving the individual and corporate clientele alike with remarkable success offering innovative banking services since then.
Recently EBL launched VISA branded Credit Card titled Simple Credit Card. Financial Express talked with Mr. Iftekhar on introducing the card in market where almost all the banks have their own Credit Card. Some interesting fact and thoughts came up through this conversation -- a selective part is presented here for our readers.
Question(Q) Tell us why EBL became interested in Credit Card business?
Answer(A) The motto of EBL's business is simplified banking solution. Credit Card is a tool for the consumers where they have a ready cash-flow that he or she can use in times of urgent need, for large amount purchases -- which might not have been possible to make at once or as an alternative for cash. Whatever the reason is -- there is a large existing and potential market for the Credit Cards. As a consumer bank, we have products and services to cater the need of almost all user groups. Credit Card is just an extension of our diversified product lines. But the big difference of EBL Simple Credit Card with other Bank Credit Card is that we tried our level best to make a Card that is consumer-friendly.
Q. EBL named the Card as "Simple Credit Card" -- any particular reason for naming that?
A. Many a reasons. "Simple" is not just a word to EBL. Our business tagline is "Simple Math". We want to take the banking services and products at a simplified level where users can understand easily what we are offering and they should feel the term "Simple" in all of their dealings with EBL. We have named our card Simple -- because we have disclosed all possible terms, conditions, features and pricing to the consumers - so that they can make a conscious decision to buy; we have developed communication channel where if anyone is interested to purchase a card -- he/she needs to SMS EBL and we are calling them back for the next steps; we are constantly in touch with the cardholders through SMS/emails and running a full-fledged 24-hour Customer Service centre for all the support needs. Once someone becomes a Cardholder -- everything, every step we have tried to keep simple.
Q. That is the operation side, any thing special that you are offering through Card usage?
A. Definitely. We tried to make the EBL Simple Credit Card usage a pleasurable experience for the cardholders. We are offering dual currency option, cash advance feature -- both locally and globally, card cheque book (and the first one is absolutely free), hefty discounts at partner stores/outlets, easy payment options, photo-card feature, global emergency assistance services through VISA and many more. But we are offering some features that are unique in the market and for the first time in Bangladesh, like Balance Transfer, Zero Renewal Fee and Double Insurance Benefit. These features have certainly made EBL Simple Credit Cards completely distinct from the other Cards available in the market.
Q. We have heard of Balance Transfer in cell-phones; what is Balance Transfer in Credit Cards?
A. Yes -- conceptually it is same. But practically different. Balance Transfer (BT) is a common option in Credit Cards world-wide. We have introduced this feature for the first time in Bangladesh. Through this option -- a Cardholder of any other Bank can transfer his/her existing card's outstanding balance to EBL Simple Credit Cards. Customers can take this option to transfer @22% interest (per annum) compared to 30% interest rate, which he/she might be paying right now.
This is a great feature if someone has a large outstanding amount and wants to bring down his/her debt quickly. We offer to simplify the debt-burden of our customers.
Q. No doubt, this is a great option for the customers. And EBL is not charging any renewal fee also, right?
A. Yes. You see -- a cardholder or any consumer of banking service does not do banking for a day or two. A relationship with a bank goes for years -- may be for lifetime. Customers help us to grow, so it is our foremost responsibility to look after his/her financial interests too.
To me, it is a morale obligation. In Bangladesh, mostly all Cards charge a renewal fee -- no matter what the card usage is. We want to encourage the cardholders to use the card get all the benefits out of it. And in return of his/her usage we are waiving the renewal fees. It's a simple math. If EBL Simple Credit Card holders use their cards only 18-times in a whole year - no renewal fee will be charged to the Card for the following year. Just imagine if someone uses the card for 15-20 years, how much savings is made on the fee alone. EBL is ready to let go this fee for the sake of customer benefit. And it is a fact.
Q. Thanks to EBL for the idea itself. Indeed this will save a lot from customer's wallet as well as encourage him/her to use the card more. Please tell us about the Double Benefit Insurance -- something unheard of in the past.
A. Again, customer first. Normally Credit Cards provide insurance coverage to the cardholders on the outstanding amount. In case of cardholder's death or permanent total disability -- the amount that is due on the card account is waived. Our card is customer centric -- that is why we are offering Double Benefit Insurance. With EBL cards not only the outstanding will be waived, an equal amount will be paid the cardholder nominee as an added benefit to meet the emergency financial needs. And this is for no additional cost. Our Risk Assurance Program fee is same as most other Banks who are offering single benefit insurance coverage.
Q. Surely innovative. Undoubtedly Eastern Bank has tried to incorporate many a benefit feature for the Simple Credit Cardholders. But what about Issuance fee? Are you charging high fee as you are offering great features?
A. Absolutely not. The issuance fee of Simple Credit Card is highly competitive compared to other Bank Credit Cards. The card is priced moderately. We have taken every possible consideration while pricing the card. In fact, we had done a market research on what should be the ideal Credit Card Issuance fee. Based on the research outcome we have priced the Cards at Tk. 1,300 for Classic Cards and Tk. 2,500 for dual cards. We have not segregated price for local and dual currency. And to add icing to the cake - we are offering 20% discount on this price until September 30, 2007. It is kept all the way simple. All I want to say -- Get yourself a Simple Credit Card, use it and Experience Simple. You will love it.
Q. In this fiercely competitive Credit Card market, do you see opportunity to grow fast?
A. Definitely yes. Though almost all the Banks are offering Credit Cards -- but the market penetration is still at the lower end. With ever increasing income level, rising middle class -- upper middle class population group, increasing number of Credit Card accepting merchant outlets/shops and frequent flier/ traveller segment , the number of Credit Cardholders are sure to rise fast. Recent government decision to drop AIT from Credit Card expenses is sure to encourage the cardholders to use the card more. And whenever a card is used -- we want a happy card user. Eastern Bank promises the happiness.
Conviction it is. Eastern Bank has come up with a Card that speaks customers' language. If you are a Credit Cardholder -- try this one out. If you do not have any Credit Card now -- why not start with something that has so many things to offer. If delivered as promised, Eastern Bank Simple Credit Card is taking the whole Credit Card concept to a new level. Ali Reza Iftekhar & his team are trying to set a new standard -- we wish them best of luck in this endeavour.