If you were to walk into a bank today, I think there would be easily at any time more than ten types of credit cards being issued by any one bank. I checked out several bank websites at random and with CIMB alone, you have a listing that goes like this: CIMB Classic, Gold, Platinum, World Master Card, Visa Infinite, Platinum Business Master Card, Petronas Master Card, Islamic Master Card, Enrich Master Card, eMaster Card, etc. On reflection, my weekend grocery list pales in comparison.

Now, the eligibility for credit cards application has become easier and easier over the years. For instance, a most basic card line just requires that you provide minimum RM18,000 income per annum once you’ve reached the “adult age” of 21. Supplementary card begins for someone as early as 18. Also, I’ve come across instances where if you are an existing card holder and were to apply for another bank’s credit card, all they take is just photocopies of your existing card and NRIC and within two weeks, your application would be deemed approved! Talk about fast and furious, huh.

Typically, credit card marketing involves two broad spectrums; acquisition, that is recruiting users (which translates to volume sales for the banks) and retention programs (for existing users). In terms of acquisition programs, we see many marketing tactics being employed which have now become almost “everyday news”. For instance, FREE this and that upon instant application and approval, FREE card charges for one to twoyears (sometimes even for Life!) so on and so forth. Since a couple of years ago, some smart financial marketer has also thought of “balance transfer” programs in a bid to recruit existing users of other bank cards to their franchise by providing them an interest-free installment payment should they wish to deflect from their current bank.

Card also comes with most “standard features” these days such as Card Protection where with a minimum of less than RM10 a month, you can be assured of immediate assistance and personalised attention when your wallet or handbag is lost or stolen. Recently, there is also a new marketing tactic from banks which offers a protection plan to ease financial worries of credit cardholders and their families in the case of unexpected family demise! Other features includes Cash Advance, where you can get emergency cash aid when traveling abroad (at a high interest charge), Bill Payment features as well as SMS Balance Enquiry services to help you manage your accounts more effectively. But I think this particular service fails to work for me as each time I would be lured by the most basic marketing lure word that reads “SALE”.

Due to the recent global economic slowdown, consumers have become more careful in terms of their spending. This includes cutting back unnecessary expenses and a tighter monitoring of our credit card swipes. With this in mind, some banks have recently launched a marketing promotion that encourages a consistent number of swipes with a certain value every week and if you can retain that minimum swipe over a month, there is a chance for X% cash rebates and further prizes.

A lot of major banks have also tried to tie up with everyday merchants such as oil and gas companies (Petronas, Shell), hypermarkets (Giant) and the beloved low cost airline, AirAsia. The latter was clinched by Citibank some years back and still continues to appeal to masses driven by AirAsia’s popularity and the privilege for early seat bookings. I have to confess here that this was also the only reason why I decided to sign-up for my second card after many years of keeping to a singular credit card since I’ve been “trained” by my father since young on the principles of good financial tenets!

This year, Citibank Malaysia introduced its Citibank World Privileges on mobile service, which provides its customers with access to all relevant offers and benefits via their mobile phones. This is the first service of its kind in the country and is expected to attract 100,000 users over the next two years.

Recognising that credit card customers often miss out on deals and discounts at different outlets because information is not readily available, Citibank has introduced this new feature that allows customers to know all relevant offers at 40,000 merchant outlets in more than 40 countries via their mobile phones.

‘The spirit of innovation is high at Citibank as customers want things ‘now’ or instantly. “As consumer lifestyles and needs evolve, we create products and services to serve these needs, while providing quality customer experience. By focusing on customer needs, we are able to develop innovative solutions that customers want, and this influences and strengthens their relationship with Citibank,” said Piyush Gupta, Citi country officer and CEO of Citibank Berhad.

With this service, Citibank credit card holders can use their mobile phones to access information related to special offers at 40,000 merchant outlets across more than 40 countries, including over 1,000 outlets in Malaysia. In addition, customers using the mobile service will also be rewarded with exclusive Citibank mobile vouchers from time to time. This service is offered free to all Citibank credit cardholders.

There are also cards specifically targeted to the Islamic segment. Example, HSBC Amanah Malaysia Berhad recently reached more than 50,000 credit cards in circulation. The Islamic Bank achieved this in July 2009, less than a year after the MPower Credit Card-I was introduced to the market. “We are very pleased with this successful achievement within such a short timeframe. We have also registered a strong momentum in credit cards growth and expect to grow further. This is a testament that despite it being new to market, more customers prefer the MPower Credit Card I as its features match their lifestyle and financial requirements”, said Musa Abdul Malek, Executive Director and Chief Executive Office, HSBC Amanah Malaysia.

While acquisition programs are often aggressive, retention programs are also equally competitive. “Smart Privileges” or bonus points redemption on cards is something that cardholders would talk about and compare amongst themselves. Merchant partner tie-ups and acquisition has also become very competitive, ranging from F&B groups, beauty parlors, hotels, fashion, mobile phones, etc. The updates in terms of merchant tie-ups has also become more regular and inserted alongside your monthly bill statements.

The final type of financial marketing that is heavily focused on right now is personal loans. Earlier this year, I received a letter from a reputable foreign bank where “the Citi never sleeps” saying that I have been a “good standing credit customer” and because of that, they were presenting me with a RM10,000 cheque. When I saw the cheque, my eyes almost fell off. I thought I had just struck the lottery.

“All you need to do is just sign your name on the cheque, bank it into any of our branches and the money will be credited immediately into your account”. Finally, I thought that all my charitable acts and prayers to Kwan Yin have been answered!

“Term and conditions apply”. As I read details further, I understood it was nothing short of just being a personal loan. For those of us less familiar with financial products, personal loans are basically as the name described it – loans; and there’s strictly nothing personal about them, other than the amount you’re borrowing. They range from RM500 to RM50,000 for individuals with annual flat percentage rates varying from 10 percent to 25 percent.

My take on all the financial marketing tactics is that it is becoming increasingly competitive amidst the gloom of the global economy and requires more push and efforts to convince consumer spending. While traditional media which include print-ads and TV commercials are still effective, the future battle would very well take place in the E-Zone, i.e. the world of the Internet and utilising popular community sites such as Facebook, MySpace, etc. I am afraid for my personal space again as recently more and more ads are also appearing on my Facebook pages without due consideration from the advertisers.

Right now, for me; I don’t want no more plastic cards…

By Kim Yit