Asia's credit card revolution

28-year-old teacher in Hong Kong money-ho (Chan Ho, who) have two Visa (Visa) credit card, is an Banking Corporation (HSBC), is one of the Bank of China. Mr. Qian, but do not want to use them. A year ago he was the first to apply for credit cards, and then his home from Beijing to Hong Kong for five years. Indonesia's 25-year-old secretary Rica? Sapp Na Tian (Rika Septiana) has four credit cards, but she only occasionally use, "most of them in case of emergency." "I like to use cash because it can immediately I know how much was spent," Mr. Qian said, "If the credit card might be too much money. Here, even young teens are sometimes Five or six cards, they usually just shopping card, but in the end, they had to pay money. " Mr. Qian's cautious attitude with what he had seen at the Hong Kong young people's spending habits in sharp contrast. However, as Mr. Qian Sapp and Miss Tian Na carefully so the cardholder, in millions of credit card users in Asia are very representative. These users have just a taste of the joy brought about by the credit and risk, the credit goes from the plastic in their wallet card, and in the past, they did not expect that dream would be so much credit. Over the past decade, international banks and credit card companies in Asia to start a financial revolution. Credit card culture from Hong Kong, and other pioneers spread out in the growing prosperity of the Asian continent to take root, and gradually affected the region's consumption habits, banking, retail and Internet business, and so on. The new wealth in the region first of all obviously be reflected in television sets, motorcycles and air-conditioning consumption, followed by the performance of the car and the hot new home purchase, is now in the credit card on the significant demand reflected. Visa Mini card is the credit card industry's latest innovation, the target users in Asia, "Bobos" (or middle-class Bohemia). Visa Mini cards can be hung on the neck, is the fashion accessories, is portable payment. But the revolution come slowly, the risk and potential returns with a large Asian market itself. On the credit card company, the first in the region means that a huge growth opportunity. Industry newsletter, "Nielsen report" (Nilson Report) shows that in 2002 the Asia-Pacific region have 448,000,000 credit cards from Visa, MasterCard, JCB, American Express (American Express) card and to (Diners Club) People use credit cards for 63 million deal, the transaction amounted to 874,000,000,000 U.S. dollars, an increase of nearly 2001 over 15%. 2002 is the most recent annual data published years. American Express Asia-Pacific region president Jim? Bush (Jim Bush) said: "In the Asia-Pacific region, discretionary spending only 7% through the credit card ... ... developed in the market, the proportion is as high as 40% . Currently is undergoing a cultural shift, that is, people traditionally regarded as the credit card tool, now in its pay as a tool to use, greatly enhanced convenience. " For credit card companies and banks, their challenge is not only about the use of consumer credit growing enthusiasm, but also try to avoid excessive action. Business growth is not easy and will not foolproof, South Korea events on the alert. Last year, South Korean credit card boom appears out of control situation, therefore, financial institutions suffered huge losses. At that time, no way out of credit card users a "window-shattering", to use this card to borrow money also that the card debt. South Korean credit card market in Asia, the share of the market so much, so the Korean market's sharp contraction of the whole of Asia would weaken the credit card market growth. In other parts of Asia, the amount of credit card transactions is still vulnerable to the impact of unexpected events, such as last year's outbreak of "atypical pneumonia" to contain the travel and tourism industries. Visa said that in the third quarter of 2003, while in Asia, the company issued debit card number than the 50% increase over the same period last year, but the number of credit cards issued increased by only 6% in the same period last year. Debit card directly from the user's bank account the amount, not to provide users with credit. However, the credit card company or look at the future full of confidence. To these companies, mainland China, India and a total of 2.3 billion people, the future means that there are great opportunities for development. Strangely enough, Asia's largest economy, Japan is also the same situation, because the plastic card in the face of such temptation, the Japanese are still very stubborn, unmoved. Visa International (Visa International) Asia-Pacific president and chief executive officer Keeley (Rupert Keeley), said: "70% of the region's consumption from Japan, China and India, but in these three countries, all of the credit card market Is still in the early stages. " "We see China and India, the credit card market is explosive growth, but the base is very small," he added. In the third quarter of last year, India Visa's retail spending in 2002 than in the corresponding period of 48%, while China increased 144 percent. In India, ICICI Bank chief executive officer of Mumbai's K? V? Cammaert (KVKamath) decided to not miss this opportunity. "Cultural changes are made by the lenders. In the past India has never Consumers borrowing," he says. Mr. Major pointed out that in the past three years, subject to a relatively low rate of support, retail consumer finance industry, the annual growth of 40-50 percent. He is expected in the fiscal year ended in March, the new consumer credit facilities will be 20,000,000,000 U.S. dollars, accounting for the gross domestic product of 4% a few years ago however, consumer credit to GDP ratio of less than 1% . "We have had a per capita income of 500-600 U.S. dollars' turning point '," he said, is for this reason that India needs more and more middle-class household appliances, motorcycles, houses, of course, the credit card. ICICI is trying hard to develop the retail banking business, the current monthly 10-120000 credit card. The bank issued nearly 2,000,000 credit card (or India has been issuing nearly one-third of the total) and 4,000,000 card is automatically put (ATM cards). It is estimated that in 2006, the total number of Indian nationals held by the credit card will more than double, reaching more than 14,000,000. International Bank of India is also keen to expand credit card business, but the low profit margins may be very cautious, because India's personal income is not high, at the same time the new card's high proportion of debt owed. Many credit card accounts at the "inactive" status, but also worried that card holders, credit card spending will be as legitimate economic activity has been included in the tax base and therefore often reluctant to use credit cards. These obstacles to a mixture of cultural and institutional factors, in Asia in the development of the credit card market is quite typical. Bankers and credit card business managers, said from South Korea, the United Kingdom and the maturity of financial markets, over-expansion of credit to draw lessons. A sharp rise in interest rates could lead to a good market, the market suddenly turned bad. At the very least, some countries may raise interest rates this year. "The business risks, and South Korea is an extreme example," a senior Hong Kong's commercial banks say, "You will be able to earn substantial revenue and profit, but if you have decision-making mistakes, may soon lose money." If there is no credit bureau, it is difficult to assess credit risk. Credit Bureau is to make a joint bank together to share customer credit information of the organization. However, some Asian markets such lack of bodies. At the same time, bank customers are not always the real income sufficient to understand and therefore can not use a standard scoring system, to make rapid credit decisions. "The credit card is issued by the volume of products, each applicant can not make judgments," HSBC India chief executive officer Neil business? Booker (Niall Booker) said. Some governments are taking measures to change the rules to encourage the issue of credit cards. Last December, the China Banking Regulatory Commission Chairman Liu Mingkang said that China plans to issue the approval of the first group of foreign brands of RMB credit card. China's market has 544,000,000 debit card and credit card 25,000,000. December was announced, Pudong Development Bank and Citigroup (Citigroup) will be allowed to issue a joint credit card, and use the Citibank credit card in Singapore's central computer. Last month, China's central bank also approved the RMB credit card use in Hong Kong, the RMB card, and the flow of hard currency is the Hong Kong region. In China, Visa's target market is a monthly income equivalent to 300 U.S. dollars or more groups, the group currently number about 60,000,000, 2010 may be increased to 200,000,000. However, China's credit card business is currently still state-controlled, a number of international companies are strongly demanded to enter the market. Thailand has so far only about 200 million people have credit cards, but Thai Prime Minister Thaksin Shinawatra (Thaksin Shinawatra) is to encourage economic growth led by consumption, and the mobilization of national credit card. "A lot of people in the past may be looking for loan sharks, now has shifted to the formal banking sector in the area," the Bank of Thailand has Yongrong? Thailand's Dragon (Yungyong Thaicharoen) said, " 'new debt' in large part only Is the old debts of light exposure. No doubt it will be even better. Sharks usually charge high interest. " It appears that shoppers prefer to Thailand due to GE Capital (GE Capital) of the money, resulting in a bad debt, not by the local triad of loan-sharking and has not expired. However, Yong-wing view, there is no indication that Thailand will be similar to the Korean consumer credit situation out of control. "We have been very reassuring," he said, "Thailand's financial institutions appears to be from South Korea to learn the collapse of the credit card market, trying to control credit risk has been highly systematic. Borrowers often use interest-free period credit card to buy Durable goods such as motorcycles, or for the sole purpose of maintaining the balance of payments. As the world's most populous Muslim country, Indonesia is also not developed by the credit card market, but consumer credit is growing rapidly. Recorded from the point of view, the country's local bank , Consumer credit is more secure than the commercial lending business. Indonesia has a population of 220,000,000. Citigroup in the country issued 1,400,000 credit cards, credit cards in the local market, accounting for nearly half. As the Indonesian market is very limited, so Citigroup's credit card issued by the credit limit can be as low as 350 U.S. dollars only. However, the South Korean credit card crisis shows that even in a well-known conservative Confucian tradition, the market bubble can be formed quickly. Early this year, the Taiwan government announced plans for the credit card business, banks are required to separate the accounts in order to avoid credit card crisis, so that regulatory authorities by surprise. Taiwan's credit card number from 1997's 7,700,000 to its current more than 37,000,000. "We know the area of credit card problems, but we first have to establish transparency, and then be able to tell how big the problem," the Ministry of Finance, a financial Bureau (Bureau of Monetary Affairs) officials at the time said, "In Taiwan, almost all card issuers were Bank, the credit card business losses can be easily banks and other lending by the profit to cover up. " In fact, for most other parts of Asia, the smaller the credit card market for South Korea to resist the disaster-card offers the best protection. In India, there are only very few sales point to accept credit cards. "I have credit card business is not very worried," ICICI's Cammaert said, "Despite our large credit card issuers, but our credit card debt less than the total amount of 150,000,000 U.S. dollars, the bank less than 1% of total assets. I Estimated to be 5 years after the credit card business will be some people worried. I am concerned over the situation in South Korea, but would like to appear as early as the situation also go again. " Over the past four years, South Korea's credit card business emerged in the explosive growth of out of control. However, the credit card crisis in the industry to Korea as a special case, although the matter will slow down credit card in the Asian region to promote speed, but it will not interrupt this trend, not a debit card business. "In most markets, credit card loans account for only a small fraction of household debt," Visa said that the Guoqi. "In the future for a long period of time, the use of credit cards in Asia and the number of users will continue to grow," HSBC (HSBC) Asia-Pacific region in charge of personal banking services Nick? Sibley (Nick Sibley) said, "I mean 20 years or so of the time. " pp collection agent Paypal Paypal payment of receivables Paypal