Saturday, October 25, 2008 Allied Bank upbeat, seeks to double credit card business
JUST one year into the credit card business, Allied Bank expects to close the year with almost 60,000 cards, and double that the following year.
“We actually launched the credit card business of Allied Bank in October 2007,” said Fol Rana Jr., first vice president and Card Center head of Allied Bank, on the sidelines of the launch of the Mabuhay Miles Platinum Mastercard last Wednesday at Casino Español.
“We will close the year at almost 60,000 cards for the entire base (all its credit card products),” he said. “We want to double that to 120,000, consolidated, by next year.”
Despite the financial crisis roiling the United States and spreading to other parts of the world, Fol was upbeat about the credit card business, saying consumers would, in fact, want to use their credit cards more during hard times.
Instead of using cash, he said, they could use their credit card to defer payment for their purchases by simply paying the minimum amount indicated in their bills.
Platinum
Last Wednesday, Allied Bank launched its Mabuhay Miles Platinum Mastercard, which starts at a credit limit of P100,000.
It is a co-brand with the bank’s sister company Philippine Airlines (PAL) that allows credit card users to earn miles while shopping at retail stores.
He boasted of Allied Bank having the lowest conversion rate for Mabuhay Miles.
“For others, the conversion is P45 to 1 mile. For Allied Bank, it’s P35 to one mile. We’re the lowest,” he said.
Last June 27, Allied Bank also launched the Mabuhay Miles World Mastercard, which he described as “the most prestigious card.”
“This is the first world card in the Philippines,” he said. “It is higher than Titanium or Platinum in prestige. The credit card limit starts with P300,000. It has a peso and dollar limit. If you are abroad, we’ll bill you in dollars. If you’re in the Philippines, you are billed in pesos. It also has a concierge service and an IS-OS number you can call” for emergency medical and travel support.
Rana said Allied Bank’s credit card default rate was lower than two percent, which is below the industry rate of nine percent.
Merger
The bank is expected to complete its legal merger with Philippine National Bank (PNB) not later than Jan. 1, 2009, said Omar Byron Mier, president and chief executive officer of PNB, at the same event.
The banks are merging as their largest shareholder, Lucio Tan, who also owns PAL, consolidates his banking interests.
“Right now, only Allied Bank has mileage with PAL. When we merge, also PNB,” Mier said.
PNB currently has Visa Card, while Allied Bank has Mastercard.
With the merger of the banks, Mier said, “We will become number three in the Philippines in terms of number of branches, and number four in terms of capitalization, total resources, loan portfolio and deposits.”
The combined bank will have 626 branches.
Allied Bank has 18 branches in Metro Cebu, whose employees Allied Bank president Reynaldo Maclang said will be moved to PNB, the surviving entity. (CTL)
