Sei sulla pagina 1di 9

Credit Card Business of Standard

Chartered Bank


NARESH (6712)
• Bank card industry is relatively a new business
• Bank card history began when individual retail
merchants extended credit to their customers
• The name is derived from standard& chartered,
standard bank of British south Africa merged with
chartered bank of India, Australia and china in 1969.
• Standard Chartered Bank is a British bank
headquartered in London with operations in more than
seventy countries
 It has network of over 1,700 branches and outlets
 focuses on consumer, corporate, and institutional
banking, and on the provision of treasury services
 Standard Chartered Bank has been actively engaged in
acquisitions and expansion
 The Standard Chartered Credit Cards come with varied
categories and each category has some attractive
 Standard chartered was the first issues a global card in
India, i.e. photo card

 Strong Brand name- worldwide presence.

 Standard Chartered carried regular marketing research.
 Strategic management of Standard Chartered bank was
great motivator of employees.
 Standard Chartered gained mileage over its competitors
by innovating concept in the credit card history of India
( photo card, member get member scheme)
 They launch their product at the right time (cricket
credit card in world cup 1996)
 They did aggressive marketing in terms of sales
promotion and direct sales.
 More focus on technology and telecommunication
(ATM Network, APS, Quality System)
 Standard Chartered has been able to sustain its legacy
of being hailed as a trusted provider of credit services
to the modern-day customers
 Highly trained and motivated sales force
 Standard chartered is growing at the rate of 37% which
is higher than the market rate of 33%
 Biggest acquirer of Asian banking assets

 SCB charges higher exchange rates and other hidden

charges those are unknown to the customer.
 No focus on upper class urban population.
 Bank has offices only in ten major cities in populous
country like India.(Not many branch networks)
 No aggressive advertisement
 Credit card facilities are not as good as other private

There are a large number of potential customers for credit

cards; hence the market growth is expected to increase.
It recorded a growth of about 33% in March 2003

 There is established infrastructure in the market.

 Laws regarding credit card are not that strict to expand


 Credit card business is essentially a volume driven

businesses with marginal returns
 The returns on investments take long periods and so
the risk involved is also greater.
 A critical number is required to make the business
profitable for issuers.
 Acquisition of new customers and retention of existing
 The market was already dominated by an early entrant
– Citibank. Their competitors include Cancard, HSBC
 The threat of new entrants –
sales force W2: offices only in Ten cities
S2: Brand image in market W3: Less focus on advertising
S3: Focus on technology and W4: Credit card facilities are not as good as other private
innovations banks
S4: Customer service


O1: Market growth Use S2, S4 & S1 to capture O1,O2 Overcome W2 to exploit O1.
O2: Govt: laws regarding credit & O3. •Standard Chartered should increase its offices in
card business are not strict •It should focus on market most cities of India to capture the market share.
O3: Established infrastructure capitalisation by providing
quality service to their Overcome W1 to exploit O1
customers through their •It should also focus on upper class urban population
motivated sales force. Market to have more market share.
expansion can also be
supported by lenient Govt:
laws and established


T1: Competition by CITI Bank Use S3 to minimise T1 & T3: Overcome W3 to cope with T3
and HSBC •Highly focus on technology •SCB can acquire prospective customers by
T2: Threat of new entrants in order to come up with identifying and stimulating the hidden needs of
T3: acquisition and retention of more innovative products can customers through more focus on advertisement.
customers. lead them from their
competitors. Overcome W4 to cope with T1 & T3:
•SCB should offer a wide range of Credit card to
Use S4 to minimize T3: acquire and retain customers than their competitors.
•It should give priority to
quality customer service to
acquire new customers and
retain existing ones.