Economy of the world has seen many revolutions as well as it has seen changes in the use of different types money (currencies) in different countries .Money (currency) of one country may not be useful in another country
Money that is freely excepted world over leaving a few exceptions is plastic money or credit cards.
Credit cards, one of the banking products that cater to the needs of retail segment has seen its number grow in geometric progression in recent years. This growth has been strongly supported by the development in the field of technology, without which this could not have been possible.
Credit cards in India, made their debut in 1981, and are on the verge of an unprecedented boom. Between 1987 and 2001, the market has virtually grown to over 4 million cards with over 25-30% of compounded annual growth in new cardholders base.
Its not that only the card numbers have increased, but even the types of cards on offer have seen a surge. Today the domestic card industry is flooded with different types of cards.
There is immense growth potential in the domestic card industry. A glance at the Indian population reveals that India's middle/upper middle class (target segment) represents a population of over 10 m. There are only 2 to 3 m cardholders, each possessing an average of 2 cards. This is a very low figure given India's huge middle to upper class population. There is no doubt that the domestic card industry has to yet to mature and offers significant long-term growth potential.
Foreign banks with the advantage of technology and industry experience are expected to concentrate on increasing card spending and customer loyalty in the major cities. SBI, on the other hand is expected to capitalize its superior distribution network to expand card acceptance in the smaller towns. The new private sector banks would have the opportunity to capture significant market share by combining the strengths of foreign banks and nationalized bank like SBI.
Although at present the card market is mainly limited to India's relatively bigger cities and tourist locations only, there is also a potential in smaller cities. Domestic banks, owing to their vast network and reach to smaller cities, can easily tap this potential. They would be better off, penetrating into smaller cities and bringing credit card to the masses rather than cannibalizing other foreign banks' existing cardholder base.
Banloanindia well-comes you to the world of credit cards. We shall provide you with all required information regarding different credit cards. Our credit card advisors shall help you by answering all you quires regarding:
- Everything you need to know about credit card before you apply for one
- The best available card as per your need
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