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There are a number of issuers that have already strengthened their positions in the Credit Card Market
in Bangladesh. One Bank Ltd. (OBL), as one of the countrys leading bank in the backdrop of the growing
demand and positive response in the market and considering the potentiality to enter into Credit Card
Business. In this attempt, I am going to attempt to study the customer satisfaction in terms of the credit
card attributes, fees and interest charges and issues regarding ATM booths. This section devotes to the
analysis of OBLs existing Credit Card and performance comparison of services with other market leaders
based on a survey data.
One Bank Limited (OBL) launched MasterCard Credit Card business back in April 14, 2004. Presently it
has only 8,500 cards in market whereas other contemporary competitors have grabbed a remarkable
market share. Lack of dynamic product features, proper marketing effort, structured credit process,
supervision of delinquency etc. is behind this miserable situation. Hence, One Bank Limited has re-
launch its One Card shortly with all dynamic features, proper marketing strategy, smooth distribution
channels (Direct Sales Team), structured collection team and above all with a best Credit Process for
Cards Division. There are 4 packages in the One Card. Information regarding those 4 packages are
mentioned below according to their website, leaflets and brochures. One of the participants inCredit
Card Services is the Cardholder who is solicited, screened and approved by the issuer. The letter
establishes a line of credit for the customer and issues the credit card. The Cardholder uses the credit
card either to purchase goods and services from a merchant or obtain a cash advance from a member
for which the cardholder receives a monthly bill from the issuer.
MasterCard Silver
This is a local MasterCard Credit Card which is valid only in Bangladesh. It can only be used in local
currency (BDT) within the country. This type of credit card has a limit ranging from BDT 10,000 to BDT
49,999. This type of card has designed for medium earner category customers.
Usage
Limit
This is basically one plastic that has dual options to make transaction in two currencies. Its acceptance
jurisdiction is in country and outside country in BDT and USD respectively. Classic dual is for the medium
earner category customers. Its credit limit is USD 100 to 1000 and BDT 10,000 to BDT 49,999.
Usage
Limit
Dual Classic/Silver Card Tk. 10,000- Tk. 49,999 + US$ 500 USS$ 1,999
MasterCard Gold
This type of card is taka card of which acceptance jurisdiction is only in Bangladesh and transaction
currency is BDT. The differences between these two cards are higher credit limit than classic card. Credit
limit of MasterCard Gold card is ranging from BDT 50,000 to BDT 5, 00,000. This type of card has been
designed for the higher earner category customers.
Usage
Limit
This is a high value dual card remaining other features same with classic dual. Gold dual is also for the
higher earner category customers and its credit limit is USD 1,001 to 4000 and BDT 50,000 to BDT
500,000. A secured dual cards limit will be maximum USD 28,000 against lien on RFCD or ERQ account.
Usage
Limit
Dual Gold Card BDT 50,000 BDT 500,000 + US$ 2,000 US$ 3,000
Service Offerings
All the service offerings of different issuers are listed at the following page in Table 1. The following are
the highlights of them.
Facility
OBL
BAL
DBBL
EBL
5 Days
5 Days
5 Days
2 Days
2 Days
3 Days
3 Days
Grace Period
50 Days
45 Days
45 Days
45 Days
20 Days
15 Days
15 Days
15 Days
Cash Withdrawal/
Advance Facility
Available
(50%)
Available (40%)
Available (50%)
Available (50%)
ATM Facility
18
234
27
The average time for processing the card and delivery is 5 Days for OBL. EBL takes only 2 days for
processing the card and delivery.
OBL is enjoying a competitive edge by providing the maximum grace period of 50 days, comparing to 45
days provided by the other issuers.
OBL is also the provider of the maximum time in the market for payment due date from statement date
with 20 days comparing to the same of 15 days provided by the other issuers. All the other issuers
provide cash advance facility of 50% of the credit limit, except Bank Asia, which provides only 40% of the
same.
4) ATM Facility
Cash advance facility has a close relation with ATM (Automated Teller Machine) facility for credit card,
which is very convenient for the cardholders to draw cash from ATM rather than going to the bank. Here
DBBL is in a leading position with 234 ATM booths all around the country. Currently OBL is on their way
to an agreement with DBBL to Share their ATM facility.
The average time for the disbursement of fund (through cheque or pay order) to the merchants is 2 day
of OBL, 1-2 day(s) of BAL, and 3 days of DBBL and EBL. Being aware of the importance of this matter,
OBL is now trying to provide the fastest service in the market.
The Lowest annual fee for Basic card local classic is Tk. 1000 (offered by OBL, DBBL & EBL) and local gold
is Tk. 1500 (offered by DBBL).
The Lowest annual fee for supplementary card local gold is Tk. 750 (offered by OBL) and local gold is Tk.
500 (offered by OBL).
No renewal charge for Basic & Supplementary Card this feature is provided by EBL.
Late payment fee for local gold is Tk. 300 (offered by OBL) and local gold is Tk. 200 (offered by OBL&
DBBL) which is low comparing to other banks.
The lowest return cheque fee is Tk. 100 both for local gold and classic offered by OBL.
The sales slip retrieval fee is Tk. 100 both for local gold and classic offered by OBL
The monthly interest rate of OBL is lowest with 2.5% comparing to 3% of others.
DBBL
Gold
Silver
Gold
Classic
Gold
Silver
Gold
Classic
2000
1000
2000
1000
1500
1000
2500
1300
750
500
1500
1000
2000
1000
2500
1300
2000
1000
2000
1000
1900
1000
0*
0*
750
500
1000
500
900
600
0*
0*
400
200
500
500
700
500
300
150
300
200
500
250
350
200
500
300
EOL Charge
500
200
500
300
400
300
nil
nil
500
500
500
500
200
200
300
150
2% or TK.75
2% or TK.75
2% or
TK.150
2% or TK 150
2% or TK.100
2% or
TK. 100
3% or TK.100
3% or TK.100
100
100
350
250
350
250
200
200
50
50
50
50
50
50
50
50
100
100
250
200
250
200
200
200
100
100
100
100
100
100
250
250
50%
50%
50%
50%
50%
50%
50%
50%
2% P/M
2% P/M
2.5% P/M
2.5% P/M
2.5% P/M
2.5% P/M
2.5% P/M
2.5% P/M
Debit Interest
2.5% P/M
2.5% P/M
2.5% P/M
2.5% P/M
2.5% P/M
2.5% P/M
2.5% P/M
2.5% P/M
NIL
NIL
3%
3%
Minimum Payments
5%
5%
5%
5%
5%
5%
5% or 500 H
5% or 500 H
Special Features
NIL
Nil
SWAT Analysis
SWOT is an acronym for an organizations Strengths, Weaknesses, Opportunities and Threats. The
underlying assumption of a SWOT analysis is that managers can better formulate a successful strategy
after they have carefully reviewed the organizations strengths and weaknesses in the light of the
threats and opportunities presented by the environments.
S (Strength)
W (Weakness)
Shortage of Manpower
The working environment is very cooperative and friendly Lack of space in the office, which is not
well decorated
Insurance of Credit Card through branch
Operation process for producing & delivering cards sometimes delays & creates bad reputation
The system is connected with the BTTB & sometime the line remains down for which the cardholder
cannot charge
O (Opportunity)
T (Threat)
The Card market has been growing with the increasing acceptability of plastic money in many outlets
Most of the people now days prefer credit card for security purpose
The bank has several types MasterCard with attractive features, which can easily grab the market
Expanding product lines, some of which is associated with card facility As the card base grows high,
the number of delinquent cardholders increases as well