HSBC launches its first credit cards in China
Bank targeting three million users, but will need to overcome competition from mobile payment providers
HSBC will begin issuing credit cards in China on Monday, the first time that the bank has done so in its own right, marking the latest stage in its expansion in the Pearl River Delta region.
HSBC currently has a franchise of its premier banking operations in China and offers mortgages. It plans to introduce personal loans on a trial basis in the country in the first half of 2017, subject to regulatory approval.
“We have definite aspirations to be a significant player in China,” said Kevin Martin, HSBC’s head of retail banking and wealth management in Asia-Pacific.
HSBC will continue to offer joint branded credit cards with Shanghai-headquartered Bank of Communications, in which it holds a 19 per cent stake.
The bank has set itself a short- to medium-term target of three million credit cards.
“In general, demand for credit cards in China is still growing, and our research indicates that a significant proportion of the Chinese population does not have a credit card,” said Albert Chan, head of Accenture’s financial services business in China.