The Credit Information Bureau (India) Limited (CIBIL) and TransUnion
have collaborated for the introduction of the “CIBIL TransUnion Score”,
the first credit score to be introduced in the country. The new scoring
system will aid creditors in gaging consumers’ creditworthiness using a
rationalized, 3-digit number. This development is in response to the
expanding number of credit options available to consumers throughout India
and the growing demand for a need to determine their eligibility. With
over 90 million credit files and a team of TransUnion analysts, the two
companies were able to develop a scoring technique for Indian consumers.
TransUnion is based in Chicago and currently employs over 4,000 across
30 countries.


Citi India has announced its pilot launch with mChek, which has been
designed to allow trade authorizations via mobile phone. This is the 2nd
of such partnerships between the companies, having already launched an
application that allows farmers to receive money for the sale of produce
a similar application. The transactions meet security standards and are
protected with the requirement of a 3DES encryption user pin. The trade
application currently has more than 250 million subscribers throughout
more than 30 million mutual fund investors and over 5 million retail
Citi has nearly 200 million customer accounts with operations in over 100
countries while mChek has developed several applications in the mobile
security, banking and payments arenas.


American Express has signed partnership agreements with Kingfisher
Airlines, in association with Airtel, to introduce the “American Express
Kingfisher First Credit Card.” The new card will allow customers to
earn free flights with its rewards program in providing the growing
demographic of travelers with its frequent flyer program. The program has
been designed to provide travelers with 2 or more round trip flights
with no more than everyday spending on the card. According to Kingfisher,
this is a perfect time to introduce this product to an Indian market that is
currently experiencing growth in affluence and domestic air travel


Among India’s exponentially expanding electronic payment market,
RNCOS foresees debit cards to soon trump credit cards as the
preferred method of plastic spending. A recent publication by the
company reflects Indian card users will top 73.4 million by 2010
and 406 million by 2011. Embodied by the 27.5 million increase in
debit cards issued between 1999 and 2004, credit card transaction
will pale in comparison to the rise in debit cards. However, credit card
transaction frequency will still increase in conjunction with debit card
use, not ceasing entirely. Reasons for this growing market, also included
in the RNCOS report, include growing consumerism, issuer competition,
and rising income levels.


SBI and Catholic Syrian Bank (CSB) have partnered to launch the “CSB
Credit Card” for acceptance with over 2 million merchants and retailers.
The card will provide holders with e-statements, SMS alerts, account access
online, cash access at nearly 2,006,100 ATMs globally, a 2% “life time
back” feature, no surcharge for gas purchases, and a “flexi pay”
option. The
“flexi pay” option allows the purchase of high-ticket items to be paid in
easy installments. With this partnership, the companies hope to penetrate
the Indian card market which is currently composed of only 2.8% of the
population, half that of China.


The first of its kind to do so, the Deutsche Bank has launched a
solution that allows customers to personalize the image on their
debit cards under three categories;”zodiac series,” “Deutsche
Bank traveling logo series” and the “Incredible India series”.
The latter of the categories is a series launched in conjunction with
the Union Tourism Ministry to provide landscape scenes of India
provided by the “Incredible India campaign.” Aside from the
aesthetics of the card, Deutsche Bank debit cards offer flexibility
on ATM and POS transactions at 26 million Visa merchant
establishments and over 1 million Visa ATM locations. Furthermore,
the bank offers rewards programs for its gold debit card program.


Jet Airways has implemented CyberSources’ automated fraud assessment
solution, “Decision Manager,” to reduce the risk of fraud. Jet Airways
the fraud management solution because of its reliability, scalability,
and flexibility
to the Indian market. “Decision Manager” evaluates transactions in
based on specifications determined by Jet Airways to determine whether the
online ticket purchase should be accepted, rejected or reviewed. This
or “decision”, is made automatically within the matter of a few seconds.
Demonstrating the flexibilty of the solution, the client, in this case
being Jet
Airways, can update specifications and terms for the determination of
fraud at
anytime. Jet Airways operates a fleet of 66 aircraft and operates over
340 daily
flights to 53 destinations around the world having flown over 75 million
since it first began operating in 1993.


Vijaya Bank is hoping to expand its credit card operations with a strategic
partner on a possible joint venture. Plans are tentative at this point,
the bank
is considering appointing an adviser for the project and is open to
These plans have been announced at a time that the Indian credit card
is catching up with debit cards. It is projected that over the next 5
years, the
credit card market will grow by 40%. Currently, about 65,000 Vijaya Bank
credit cards are active, 45,000 of which are issued by VISA , and 2.9 lakh
debit cards are active, all of which are issued by VISA.


HDFC Bank will be implementing TCS BANCS’ “Treasury” accounting
solution for treasury management and to support Straight Through
Processing (STP) by incorporating web-based office functions. The solution
will help the bank support increasing volumes in the Treasury operations
division, will allow greater speed-to-market market and provides risk
management and middle office operations. HDFC Bank has a customer base
in excess of 200 institutions, operating in over 80 countries for a
total of over
10 million customers across hundreds of Indian cities. The Bank has a
of 753 branches and 1,605 ATMs in 320 towns/cities with a net profit of
INR 11.42 billion ending March 2007, 31% higher over the previous year with
total deposits at INR 682.98 billion, 22% higher, and a total balance
sheet size
growth of 24% to INR 912.36 billion. Tata Consultancy Services (TCS) has
over 94,000 IT consultants in 47 countries and a consolidated revenue of US
$4.3 billion for fiscal year ended 31 March, 2007.


IndianOil and Citibank have launched the “IndianOil Citibank” debit
card, India’s first co-branded debit card available across 15 existing
cities for new and existing banking customers. The card operates on
MasterCard’s Maestro platform and provides debit and ATM functions,
as well as online account access for customers. Other
benefits of the card include no transaction fees when used at IndianOil
retail outlets, 2 reward points awarded for every Rs. 100 spent at the
retail outlets using the card, points to be redeemed for free petrol
and special offers on auto maintenance accessories. The card has been
met with success in India, reflected with the recent award from
MasterCard’s “Excellence in co-branding in South Asia”. IndianOil has
a combined capacity of 38.15 million tons per annum in oil with a
combined length of 6523 kms of pipeline at a capacity of 43.45 million
mts per annum. In total the petroleum company holds 53% of the petro
products market share in the country. Citibank India has over $ 5 billion
of custody assets under management and was the first to launch credit
cards in the country with over 1.6 million card members.


Gitanjali Group & ICICI Bank has launched a “Jewelery Card” to
provide customers with benefits at more than 200,000 Indian
merchants and 22 million around the world. The card was designed
for Gitanjali patrons, free of membership fees, and provides 8 reward
points per Rs. 200 spent at Gitanjali outlets. The card also provides
discount of 5% on purchases of diamond jewelery up to Rs10000,
discount of 7.5 % on purchases above Rs 10000 at Gitanjali outlets,
and Interest free EMI for 3 months or 6 months on purchases at
Gitanjali exclusive outlets. Benefits also include Rs 500 Gitanjali gift
vouchers, jewelery cleaning vouchers, Worldwide acceptance, ATM
access more than 3400 ICICI Bank ATMs and over 1 million Visa
ATMs, an interest free credit period of up to 52 days and 24-hour
phone banking services. ICICI Bank has a 50 year presence, assets
of Rs. 3,446.58 billion, a network of over 745 branches and 3340


In response to the growing credit card market, Life Insurance
Corporation of India (LIC) will be launching its own card. Subsequently,
the company is observing an “insurance week” in recognition of this
development. LIC currently has an 80% market share with 110 satellite
branches allowing premium deposit and providing information on existing
policies. Additionally, the company will be establishing 59 satellite
in the Madhya Pradesh- Chhattisgarh central zone before 2008..