September 01, 2010
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News: Citi Showing Strong Leadership In Malaysia
The Malaysian government's recent implementation of the RM50 service tax has impacted the credit card industry so strongly that the country has seen a 15 percent decrease in the number of open accounts. One company prides itself in being the leader in maintaining open credit to Malaysian residents. In a recent statement, Citibank Bhd boasted that the bank's credit card cancellation rate was below the industry's national average. Fabio Fontainha, the head of Citibank's consumer markets, said that since January, the bank's cancelled credit card accounts were at least two times less than other card issuers.
As the Malaysian credit card industry shrank nearly 15 percent over the past year, Citibank Bhd continued to gain market share. The bank expects the market to continue decaying; however, Citibank hopes to continue the leader as they gain an even bigger piece of the pie. Malaysia has experienced a recent boom in the credit card market growing from 2 million in circulation in 1997 to over 11 million to date. Charge cards such as those issued by American Express are not included in these numbers. Fontainha said the company currently holds 20 percent of the card market which include its Platinum, Cash Back Platinum, and its PremierMiles cards.
Citibank Bhd doubled its new credit card acquisitions from first quarter to second quarter which is a strong indication as to how aggressive the bank is in seeking out new accounts. Fontainha indicated that the company will not be pulling back any time soon from its aggressive marketing and in fact will be increasing its presence as it prepares to launch a new product. The company is a leader in the private label mark as well with a strong presence with its AirAsia, Shell, and Giant co-branded products. Citibank Bhd offers a variety of products and services including personal banking, insurance, financial investments, and loan services.