The India branch of American Express Banking Corp has signed adistribution tie-up with Chennai-based public sector bank, IndianOverseas Bank (IOB), to provide its creditcard services through the latter’s distribution network.Based on the Memorandum of Understanding (MoU) signed betweenthe two banks, the co-branded platinum and gold charge credit cardsof American Express would be distributed to the premium andhigh-end customers of IOB. The co-branded card will have the logoof both IOB and American Express, and would be available for thecustomers from May 1, 2011.“We have a full slew of payment systems established inIndia. We are looking at expanding our franchise in India.Considering the strength of Indian banks and the growth of economyin the country, we expect the tie-up would give a push to ourexisting growth,” said Shailesh Baidwan, country manager andhead (consumer cards business), American Express Banking Corp.IOB has so far issued 37,000 cards across the country and 11,000out of this were for high networth customers. “We aretargeting to cover 500,000 high networth customers this year, andthe tie-up with American Express will be a booster to ourgrowth plans,” said M Narendra, chairman and managingdirector, IOB. Know More about Hotels in ManaliThe platinum card comes with an annual fee of Rs 10,000 and alife time fee of Rs 50,000. The gold charge card, with an annualfee of Rs 4,300, would be free for customers joining through IOBfor the first year.The average spending on American Express cards in the countryhas seen a growth double of the overall average spending on creditcards in India, said Baidwan.The average spending on our cards were at Rs 1.5 lakh in 2010,more than triple the size of the overall average spending, which isat Rs 40,000 in the country, he added.The growth on the bank’s average spending on cards is double ofthe growth of ovarall growth of average spending on cards, whichwas at 15 per cent in year 2010, he said. At present, it targetsthe premium and high-end segment customers with an annual income ofRs 8 lakh and above.
Related posts:
Do It Yourself Credit Report Repair
How to Take Advantage of Social Media in Business Reviews
How to Avoid Late Fees
Average Number Of Credit Cards Consumers Have
SBI: Diwakar Gupta to be named for MD
Avoid Getting Scammed by Damaged Credit
Being stuck with your plastic – why you should regularly evaluate
your credit card.
Do You Know What Your Credit Score Chart Means?