Citibank has become the second foreign bank to deploy
credit cards in China, after it received approval from China’s
banking regulator.
The Bank of East Asia, based in Hong Kong is
the only other non-China-based bank that offers non-cobranded
credit cards.
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Citi said it will be launching the cards for
retail and commercial customers this year, but could not give a
more specific time-frame.
Citi is aiming to tap into a major growth
market for cards. Central-bank data shows that the country had
around 268 million credit cards in issue at September 2011, which
was more than five times the level at the end of 2006.
“The ability to offer both retail and
commercial cards provides Citi with a strong competitive edge,
further meeting the needs of our expanding customer base,” said
Andrew Au, CEO of Citigroup China.
Prior to 2008 foreign banks could only issue
credit cards in conjunction with local partners. This resulted in
foreign banks issuing co-branded cards with Chinese banks they held
stakes in.
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By GlobalDataCiti’s co-brand arrangement with Shanghai
Pudong, in which it has a 2.7% stake, will cease to exist once
Citibank launches its own cards.
