StanChart tailors rates for S'pore card battle

The initiative follows last month's launch of black credit card products by Citibank and DBS (Media, October 31) within days of each other .

Standard Chartered's multimedia offensive - radio, television, print and outdoor - aims to distinguish itself from the competition by offering an annual interest rate that is tailored to the cardholder's spending behaviour and risk profile. Low-risk cardholders can enjoy an interest rate as low as 10 per cent a year, compared with the market norm of a flat 24 per cent charge.

In addition, the Manhattan card will also offer benefits and experiences, which are tailored to the interests of its cardholders.

To differentiate its proposition from rivals, the creative executions adopt a world-weary, ultra-hip tone and suggest, among other things, that people not sign up for the card because it would give them too much to do.

Said Eva Ang, the corporate affairs manager at Standard Chartered Singapore: "Our key priority was to get a campaign that could best bring out the Manhattan personality, attitude - cut through the clutter as does the whole Manhattan offering. Manhattan will change the way the credit card industry operates - getting card issuers to work harder at understanding customer behaviour and preferences."

The bank promises that the "un-bank, un-card" way it talks to its cardholders will extend even to the call centre.

The Manhattan card in Singapore is backed by MasterCard, whose country manager T.V. Seshadri noted that the city was a highly mature card market.

"Therefore, any product introduction needs to have a truly unique differentiating proposition."

Although the Manhattan card is black, featuring the Manhattan skyline at night, Ang insisted the hue had little to do with the prevailing trend of black cards.

The Manhattan card was previously owned by Chase Manhattan until Standard Chartered acquired Chase Manhattan's Hong Kong retail banking operations in 2000. Singapore's Manhattan card looks identical to the Hong Kong version, however, the Hong Kong product does not feature tailored rates and experiences.

Ang confirmed that the bank was planning to roll out the new Manhattan brand in other Asian markets, but she was unable to provide a timeframe.

And while the bank is working with MasterCard in Singapore, it will work with either Visa or MasterCard in other Asian markets.

CREDIT CARD ADSPEND - BATTLE HEATING UP
                                 Jan-Oct          Jan-Oct  Year-on-year
                         2003 ($dollars)  2002 ($dollars)      % change
Citibank                        2,377,782        4,550,956         -47.8
DBS                             1,976,917        1,036,937         +90.6
Standard Chartered                752,764          599,970         +25.5
Source: Nielsen Media Research