FE Report

The local private commercial bank, City Bank, has recently formed an alliance with the global financial giant American Express Company to introduce the internationally acclaimed American Express credit cards in Bangladesh.

Through the move, American Express, which claims to be the world's largest issuer of credit and charge cards with 92 million card members globally, has entered a country with one of the smallest credit card user base, apparently to explore this highly untapped market.

The two companies formally announced their partnership through a formal launching of two American Express credit cards, namely the Green/Blue card and the Gold card at a city hotel Saturday.

Under the arrangement, City Bank is going to be the sole issuer of the American Express credit cards and sole merchant acquirer for the Bangladeshi market, the bank authority said.

Previously, only a few hundred charge cards of American Express, issued from India, were available mainly to a small number of Bangladeshi exporters.

"City Bank now belongs to the prestigious league of 130 banks in 129 markets who are franchisee of American Express card business", City Bank Managing Director Mahmood Sattar said.

In the neighbouring countries like India, American Express's local franchisee is ICICI Bank while in Pakistan; it deals through Standard Chartered Bank, an official said.

"The latest move is followed by a series of positive changes for City Bank in the local market over the last two and half years", City Bank Chairman Aziz Al Kaiser said.

"This include a new corporate brand identity and a very ambitious brand pay-off line as well as changes in its entire business model, opening of its brokerage business, launching of ATM fleet, retail loans and re-launching of our card business", he added.

"Recognising Bangladesh as highly potential emerging market, we tie up with one of the fastest growing banks in this country to tap into its growing credit card business", American Express Executive Vice President and Head of Global Network Services, Japan, Asia Pacific and Australia Kula Kulendran said.

As a leading global payment, network as well as travel company, American Express offers its credit card members an array of value added travel benefits as well as access to one of the world's largest travel agency networks, the authority informed.

In addition, they will also have access to the global 'American Express Selects' programme, which would provide benefits and offers from thousands of retail stores, hotels and restaurants at home and also while travelling abroad, they added.

According to the City Bank officials, Bangladesh at present has around 600,000 credit card users. However, the potential market that could be tapped is much bigger as the total number of people with 'cardability' is estimated to be more than 5.5 million, they added.