Is the future all in the cards?

Since the global financial crisis banks have been struggling to promote their credit cards. Clients no longer appreciate a cold call offering a new card. But then the bank’s future is still all in these cards as is the future of consumer payments.

For the plain fact of the matter is that credit cards remain the most profitable branded product for most regional banks. The onus is clearly on them to rethink both the marketing of this product and how to make this cash-alternative even more convenient for the user.

User convenience

The wrong way forward is to do what Citi did recently and decide to send an SMS everytime you use your card. Manual deletions of these SMS messages are a nuisance. It should have been a customer option not an opt out.

Sometimes technology is too much. The telephone stacking systems that prevent clients from speaking directly to staff are one example. Far better to have a named person to call.

Then again technology does have many advantages. Booking an air ticket online with a credit card is very practical, especially if the card then awards you frequent flyer points as well. The co-branded card is an excellent innovation, whether the well established Emirates-Citi link-up or the newer ADCB-Etihad card.

Enhancing customer service and integrating it into effective marketing is a theme of the second GCC Cards Summit to be held in Bahrain’s Moevenpick Hotel from November 1st-3rd. ArabianMoney is sponsoring this showcase of industry innovation featuring an all-star cast from the sector.

Payroll cards, pre-paid with salaries, are another big thing for the local banks. They have been reluctant to promote them because of the investment, not fully appreciating their value in terms of branding to a whole new customer base.

Pocket money

The same pre-paid cards are also useful to give pocket money to children and students. Bahrain Islamic Bank has rolled out its Vevo pre-paid card. What a great way for banks to introduce themselves to the high spending clients of the future, and to teach young people how to behave responsibily with bank cards.

For the future is still all with electronic payment cards. For travel and Internet shopping they are already essential. For monitoring payments online they are indespensable. Besides cash is always a security risk and fraudulent card transactions can be undone – it much more difficult if cash has been stolen.

But the 150 plus delegates to the GCC Cards Summit this autumn should keep the human touch in mind in developing their technology. Remember who is the servant and who the master.