It seems it’s the season for new banks and other insurance companies to start credit card. Now it is Dena Bank which is going to start its very own credit card business. Dena Bank is going to tie-up with SBI Card to launch its own credit card.
It seems they already have a customer base of around 10,000 when it comes to credit cards and with this tie-up they will boost up more with SBI Card.
This really proves the point that it is the time of credit card companies to make hay in India, as the customer base of credit cards have been increasing and so is the profit.
Dena Bank to Launch Credit Cards with SBI Cards
Posted by Siva Labels: credit cards, other credit cardsAfter LIC it is now the turn of Bajaj Allianz which is another insurance company to start its own brand of credit cards. I guess it is sort of chain reaction which catches up others soon.
Bajaj Allianz will launch the credit cards under its own brand name. They might be tie up with another partner to launch it soon. It is expected to launch before this year end.
It seems that these credit cards will bear the Bajaj Allianz brand name while the settlements and other stuff would be done through their partners.
I wonder why these already profiting insurance companies are diversifying into this entirely new domain, credit cards! I guess the high interest rates that is being extracted by these credit card companies could be one such reason? What do you say?
Life Insurance Corporation of India or otherwise commonly known as LIC, the India’s largest insurance company is going to venture into a new domain, i.e. credit cards. Yes, it is confirmed now that LIC is going to start its own credit card business. This is confirmed recently by the senior officials from LIC.
This is indeed a new venture for LIC who has had a very successful story so far in the insurance segment with a vast majority of the Indians being insured with LIC. They are in talks with the companies to offer these card in co-brand or co-existent manner. But it seems it was not yet finalized but hope that they will come up with the credit card soon.
The new credit card will bear the name as LIC Card Services or LIC Credit Cards. It is indeed a good wait to see how they promote this new LIC Credit Card. Since being a fully owned government company its promotion and marketing strategy would differ a lot when compared to other MNC credit card companies.
I am also not sure how the interest rates for the new LIC Credit Card will be, will the interest rates will be less when compared to other credit cards or will remain the same.
I am actually quite surprised to hear this news of LIC entering into credit card business. Since LIC has been a huge success and the profits for them from insurance is huge and I guess they want to diversify it into other businesses and I guess this could just be the start of more such ventures for LIC.
In what was termed as a great move, the Supreme Court has refused a stay made by national consumer forum stating that banks cannot charge more than 30% interest rate annually if the full amount on the balance is not paid on the credit cards. Some banks are even charging around 50% as interest charges annually. This will definitely put a halt on these credit cards issuing banks who have been the customers for granted in this issue.
Now, we will have to wait and see how well this is implemented and how the customers are benefited from it since this is just a stay and a full law should be made in this regard. And also the foreign banks are going to appeal against this stay.
It is to be noted what these banks have listed as the reasons why they are overcharging us, very funny,
Processing cost for setting up a new card in operating systemAnd what’s more even funnier is the fact that they have mentioned the call rates that they have to take up to call the random customers to persuade them to buy their credit card!! It is not us who are asking them to call us to get the credit card, but it is those banks who do this for their profit and they are not doing any social service.
Cost of courier and cost of embossing the card
Cost of providing phone banking service
Cost of sending monthly statements
Cost of providing internet banking facility
Cost of waiving charges for service reasons
Cost of marketing and promotional offers
Cost of rewards and loyalty programme
There should definitely be a cap put somewhere to stop these credit card companies from over charging using various hidden and other charges as well as the interest charges.
Ever heard ABBA crooning, ‘Money, money, money, always sunny, in the rich man's world’? Money, dough, bucks – these terms are synonymous with man’s desire today. Money has been defined as a medium of exchange and thus a circulating entity in matters of finance. However, money is also what is received or sought in exchange of any substance of material value. The lines, “Money don't get everything, it's true, but what it don't get, I can't use” from a popular song highlights the apt value of money in our lives today.
The term buck refers to a single unit of currency in some countries. However, with globalization taking over the world, the term is used by youngsters all over the world when they refer to money. It is interesting to note that while on one hand, a buck may refer to a dollar, on the other, it is used to refer to a million dollars in the finance circuits.
Though the material world is trying to seek solace in spirituality, yet it does not completely do away with the value of a handful of bucks. People may be divided over whether it is love or money that makes the world go round, but we know that money will continue to amuse people as long as the humankind exists.
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