Credit card is the one business that arouse the bank

mymoen    Business, sundry     credit card, Internet, Life Insurance, money, sundry

Credit card is the one business that arouse the bank. In addition to market is still wide open, which can dikantongi money from this business also lumayan besar. Understand, compared to other loan products, interest rate credit card may be spelled out very high, ranging between 30% -45% per year. Hence, it is not surprising if many banks so vibrant menggauli this business card magic.

However, I know, this growth of the credit cards tend to be slowed. If compared to the end of 2006, to June, the amount of the credit card outstanding grew only 2% to 8.4 million cards. Nevertheless, the value of transactions is increasing. Until the end of June, the credit card transaction has reached Rp 31.4 trillion, growing 25.2% rather than the same period last year. “In the last two years credit growth reached 33%,” said Edi Siswanto, Director of Accounting and Payment System Bank Indonesia.
In fact, although the promise of happiness, a business card magic has a high risk of bad debts. Moreover, the publisher often ignore fundamental careful in selecting clients. Some of the banks that issued credit cards are experiencing the bitter reality. One example HSBC Bank Indonesia.

Financial reports from semester I-2007 revealed that the non-performing loan (NPL) of foreign banks increased from 4% to 10% or up 150%. From the value, number classified jumbo, about Rp 1.2 trillion. In fact, in the semester I years ago, the bank NPL is only Rp 516 billion. According to Rakesh Bhatia, CEO HSBC Indonesia, a credit card that contributes to the melonjaknya major credit problems in banknya. But, he was not too worried it will affect the condition of the company business. The reason was, “Quality of credit card holders now have better,” said Rakesh.
During this time, HSBC is known as one of the credit card issuer’s most aggressive. That can be seen from the behavior that tends to pemasarnya “frivolous” in the customer selectivity. “For us, the customer can be important. Concerning the risk that even though managed bank, “said one of the card marketers TRUST found in a shopping center.
TRUST source said, the credit card NPL rise in HSBC because many customers can not afford to pay the minimum repayments. That turbulence central bank raised the minimum credit card payment from 5% to 10%. “Changes in the minimum payment is insufficient cause the client can not afford to have a pocket to pay its obligations. This makes the business a credit card HSBC shaky, “said the source.
Impact susulannya, foreign banks were forced to do this pencadangan in large numbers. The value of Rp 1.4 trillion or 127% increase compared to same period in 2006 that only around Rp 640 billion. Rakesh said, melambungnya due to credit problems, the net income the company took dikantongi dwindle. “Last year, our net profit down due to credit card NPL. But we believe this year the situation will be better, “he explained.
In addition, Rakesh added, due to increase in NPL, years ago HSBC business customers also have nearly no growth. However, he said, conditions have now improved start. In addition to improvements in marketing credit cards, HSBC is also the more serious use segments for small businesses. HSBC Loan through flag (this kind of Danamon Savings and Loans (DSP) belonging to Bank Danamon), management expects that credit will be channeled up.
Management is optimistic, through the new strategy, HSBC akan income increased more than 50% in this year. Moreover, micro-financing power absorption evidently good enough. Only at this time, almost 60% of loans that HSBC has been distributed to the segment of this flow. “Credit is SALURKAN our people to self employee. Is included in the micro-financing, “said Rakesh.

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