Citibank Credit Card in Asia Pacific

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  • Published : January 22, 2012
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Launching the Credit Card in Asia Pacific

Ankit Bhardwaj Apaar Malik Neha Sharma Shashwat Bhanti Sidharth Shah

€ € € €

€ €

Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York. Citibank has retail banking operations in more than 100 countries and territories around the world. Founded in 1812 as the City Bank of New York, ownership and management of the bank was taken over by Moses Taylor, a protégé of John Jacob Astor and one of the giants of the business world in the 19th century. In the 1960s the bank entered into the credit card business The card, known as "The Everything Card", was promoted as a kind of East Coast version of the Bank Americard.

€ € € € € € € € € €

CitiOne Account Mortgage Power Citibank Auto Loan Citibank Ready Credit CitiGold Service Citi Phone Banking ATM Business Banking Citibank NRI Business International Personal Banking

Citibank·s presence
Africa Europe Middle East Central America South America North America


Citibank·s Net Income till 2008

Citibank·s Assets/Liabilities ratio

*The company is financially strong

Case Introduction
Credit Card Functioning Years in which Citibank entered countries. Population statistics Economic statistics Manager¶s Opinion.


Credit Card Functioning
Card holder makes purchase at merchant Merchant submits transaction to merchant bank or acquiring company





Merchant Bank or Acquiring Company

Credit issuer bills card holder for total of Transactions made in month ($100) Card holder makes full or partial payment to the card issuer (minimum to $100) Merchant bank or acquiring company reimburses merchant less merchant service charge Interchange network reimburses merchant Bank for amount of Transaction less interchange fee($98.50) Merchant bank or acquiring company submits transactions to interchange network ($100)

Credit Card Issuer

$98.50 ($100)

Interchange Network


Years of Citi Bank¶s Entry in Asian Countries
Hong Kong (1902) Taiwan (1964) Australia (1965) The Philippines (1902) Guam (1969) Singapore (1902)

India (1902) Malaysia (1904) Indonesia (1918) Thailand (1967) Korea (1967)

Population Statistics
797 300 800 300 250

200 167.7 150 Population(In Millions) Urban Population(In Millions) 100 69 50 16.514 0 5.6 5 42 31 16.9 6 2.7 3 19.8 14 11 61.9 55

Countries Economy
12 11 9.7 9.8 8.7 8 8 7.6 7.37.4 6.8 6 4.8 4 4 3.8 Growth Rate(In percentage) Inflation(In percentage) 8.1 7.3 10.8 10

2 2 1.5 1.2


Manager·s Opinions
Bob Thornton(Country Manager- Indonesia) -> History of poor consumer payment on installment debt. -> High levels of fraud in the financial sector. -> Legal infrastructure in inadequate. -> Small market for card product but a potentially large population of 180 mio. €

Dave Smith(Country Manager- Singapore) -> Small 2 mio population. -> Saturated card market with American Express. -> Late entry may result in losing money. €

Jaitirth Rao(Country Manager- India) -> Very large country with poor infrastructure. -> It¶s a dog and delay it. € €

Jeannine Farhi(Recently moved from USA to Asia) -> Poor implementation may lead to huge losses. -> Asian countries suffering from inefficient postal services.

Launching the Card
Market Entry Cost Card Business Operation Economics Customer Acquisition Success Probability Dollar Vs Local Currency Central Data Processing Focus on Existing Business Direct Mail Infrastructure Problem

Market Entry Cost
Green Field Market Development
Direct Mail Take-Ones Direct Sales¶ force Bind-Ins

Market Acquisition
Facilitates quick entry into market. Easily leverage existing Operations infrastructure and Human Resources in order to consolidate the market share. Choosing of right bank...
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