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Citibank grows consumer offerings with new card
Published in Daily News Egypt on 01 - 08 - 2011

CAIRO: When the January 25 uprising broke out, Citibank Egypt thought it wise to hold off on releasing its newest product — a Platinum credit card for Egypt's wealthiest consumers.
But last month, the company added the thirteenth option to its lineup of cards, a signal that the company has not put aside its ambitions to grow in the consumer market.
“We have been optimistic since the beginning of the situation in Egypt,” wrote Ashish Bughra, the country business manager at Citibank Egypt in an emailed statement to Daily News Egypt.
“We affirm our commitment to the Egyptian market and keenness to contribute to boosting economic development in the country, especially after the great changes in Egypt,” he said.
Bhugra wrote that despite Egypt's uncertain economic conditions, Citibank still hopes to grow market share in its key consumer products, including cards and personal loans.
Consumer banking in Egypt has grown tremendously over the past decade, and banks are intent on capitalizing on rising demand for consumer services that extend beyond checking and savings.
“Now banks are developing,” said Rania Reda, who heads up banking research at the market research firm Synovate in Egypt. “They're trying to meet their customer needs through different portfolios.”
With an annual membership fee of LE 500, the Platinum card is Citibank's most expensive option. It is pegged for Citibank clients among the “merging affluent, to the high net worth individuals,” according to the press release announcing its launch.
The card, offered with MasterCard, comes with 20,000 bonus reward points — 10 times the next highest option — access to 600 airport lounges in 100 countries, and discounts towards various expenditures including golf and limousine services.
The new credit card was released shortly after the Titanium card, another card targeting Citibank's wealthiest customers.
Bhugra explained that the “A class” in Egypt constitutes about 5 percent of the population, or about 4 million people. High net worth individuals (HNWI) comprise a much smaller percentage.
“So it's a segment that's much less than 4 million customers,” he wrote.
According to Reda from Synovate, Citibank is engaging a market with entrenched competition from other banks as it looks to serve the very wealthy. HSBC, for instance, has performed strongly in public perception polls, with a special call center and other unique features for its most affluent customers.
Citibank will provide personalized service and a special call number for Platinum users.
But Reda said that perception polls demonstrate that Citibank is often associated with high fees and high credit card interest rates. “They have to communicate,” she said.
Bhugra wrote that it is too early to assess the success of the Platinum card and the Titanium card that was announced in May, particularly since advertising campaigns are still underway.
But he says sales “are pretty good especially while taking into consideration the current situation in the country.”
According to a recent Synovate public perception study, bank brand names were not affected heavily by events of the revolution.
And Bughra wrote the company's goals have not been altered.
“Our strategy has not changed at all after the current changes in the country,” he wrote.
Citibank's new offerings in the consumer banking sector are not limited to the most affluent segments of society, according to Bughra. The bank is targeting other sections of society through other cards, rewards programs, and loans.
“We are keen to provide products that are tailored to each segment's needs, lifestyle and aspirations,” he wrote.
Citibank has pioneered auto loans in Egypt and will also be rolling out a program of personal doctor loans.
Citibank is the consumer banking arm of Citigroup, an American-based financial services company that runs one of the largest financial services networks in the world. In Egypt, Citibank had roughly 800 workers at the start of the year.
Since Citibank joined the credit card market in 1999 with the first unsecured credit card in Egypt, card use has risen sharply. Today, there are a total of 1.7 million users in Egypt, of which Citi has more than 120,000, according to Bughra.
According to a January study from the Synovate, 72 percent of the upper and middle upper class own credit cards.
“We have positively influenced the banking trends in Egypt by introducing a number of pioneering products that have made the financial sector as easy and enjoyable as it can be,” Bughra wrote.
“Our plans are to continue growing our franchise in Egypt,” he wrote.


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