Premium services for premium customers

Iwan Suci Jatmiko ,  Contributor ,  Jakarta   |  Sat, 04/05/2008 12:44 AM  |  Supplement

These days, credit cards are a necessity. Starting out as a status symbol, the credit card is now very much a part of everyday life. However, as the number of credit cardholders has grown significantly, the amount of bad debt has also increased to huge proportions. This phenomenon has prompted the banking industry to slowly shift the target market for their credit cards. While initially they were eyeing users from the middle class, today banks tend to target customers from the upper class, namely people with a high income.

This is understandable as the number of wealthy people in Indonesia tends to increase consistently. According to Morgan Stanley Singapore data, worldwide there are 7.2 million super-rich people controlling assets worth US$27 trillion. Meanwhile in 2005, the assets of wealthy families in Asia were estimated to reach $7.3 trillion. Indonesia, despite being a poor country, has shown a significant growth in wealthy people. It is believed that there are 3,328 families in the super-rich category, controlling assets worth between $5 million and $20 million; and 167 families believed to control assets worth between $20 million and $100 million.

In addition, about 10 percent of Indonesia's population of 234 million people belongs to the super-rich category. This means about 22 million rich families are a potential market to explore. Therefore, banks vie to issue premium credit cards to accommodate the lifestyle of these super-rich customers, namely unlimited overseas travel, shopping at upmarket stores the world over or entertaining clients at posh places.

Indeed, these high-end people, who make up the target market for premium credit cards, seem to be inexhaustible for exploration. The players have become increasingly more aggressive. Nearly all banks use tempting gimmicks and extend bona fide facilities to these cardholders. Bank BRI, for example, has teamed up with MasterCard to issue BRI Platinum to its high-end customers. BRI Platinum offers a number of alluring features, such as concierge service, access to an executive waiting room in 33 airports across Indonesia, free 24-hour medical access the world over as well as valet parking at a number of major malls in Indonesia. Also available with this credit card is global services in emergency situations such as loss of the card in the event of it being misplaced or stolen.

Bank Mega has the Mega Visa Platinum for its high-end clients. Nearly all banks, both domestic and foreign, issue premium credit cards, such as Citibank with its Citibank Ultima and Bank Mandiri with its Mandiri Visa Platinum. At present, Bank Mandiri has 1.03 million credit cardholders. For its premium or wealth management market segment, the bank has the Mandiri Titanium Card. Between 10 and 15 percent of its cardholders hold platinum and titanium cards.

Meanwhile, there is also the World Card, which is a super premium product of MasterCard issued by Bank Danamon. This product offers features that pamper clients with high taste. The World Card is offered for comfort in transactions, particularly for clients fond of traveling. Besides offering lucrative hotel and restaurant discounts, this card also has an airline miles program.

Another bank with experience in issuing premium credit cards is Standard Chartered Bank (Stanchart). This British bank issues the Business Card Platinum and the SCB Visa Black Platinum. Stanchart has some 250,000 credit cardholders, with more than half of them having gold and platinum cards.

Meanwhile, Bank Panin has the Panin Platinum Visa credit card. In the first year of introduction of this card, Panin set a target of 20,000 credit cards. In the same way, Bank Bukopin has issued the Bukopin Visa Platinum credit card, which is designed to meet the needs of high-mobility customers traveling abroad. Bukopin targets 10,000 customers for this card.

One of the aggressive banks is Bank Central Asia (BCA). Mid last year, in the context of celebrating its 50th anniversary, the bank launched the BCA Visa Platinum. "BCA collaborates with Visa to provide comprehensive services to customers with their own distinctive lifestyle and needs," said BCA director Suwignyo Budiman during the launch of the credit card.

BCA Visa Platinum is an all-in-one package and is a combination of various benefits offered by other BCA credit cards, for example, the "Pay for One, Get Two" program for tickets at 21 Cineplex theaters and Hard Rock in the case of BCA VISA Batman and BCA MasterCard MC2 credit cards. There are also special offers at certain outlets and other exclusive places through the BCA Gold credit card.

Of course, the BCA Visa Platinum credit card has other allures, such as a medical assistance service that covers health consultation to evacuation. There is also life insurance in the case of a road accident with a very attractive premium rate. This facility automatically comes into effect when a cardholder travels on tickets bought with the credit card. In addition, BCA also teams up with VISA to ensure that the users of this credit card can also enjoy the exclusive services offered by VISA worldwide privileges. There is also a Visa Platinum Club.

Bank Niaga, on the other hand, has teamed up with MasterCard Worldwide. This bank has launched the Niaga Platinum Card for distinguished and established premium customers. The Niaga Platinum Card is the latest edition of a series of Bank Niaga credit cards that have been exclusively issued and designated for the high-end group known as Platinum People.

The Niaga Platinum card also offers facilities that can accommodate a customer's personality and lifestyle. These facilities include Travel Comfort, which makes it easy to make a comfortable business or leisure trip to any part of the world, Insurance Protection, which provides insurance protection during a trip and shopping protection while traveling, and Quick Cash, which enables users to withdraw cash quickly and practically in various currencies the world over. Bank Niaga has set a target of 12,000 new Niaga Platinum Card customers by the end of 2008.

However, a customer needs to meet certain criteria to qualify for a premium card. One of the requirements is that a premium cardholder must have a high income.

Standard Chartered Bank, for example, requires a minimum income of Rp 12 million a month or Rp 144 million a year, while Bank Panin sets the minimum income at Rp 240 million a year. In view of the credit limit, as the segment for this card constitutes wealthy customers, the premium card may carry a value of tens to hundreds of millions of rupiah. BCA and Bukopin, for example, set the minimum limit for their premium credit cards at Rp 50 million. Some even go as far as setting a limit of up to Rp 300 million.

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