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SCMP Reporter

OTB Card Co, which has grown phenomenally in the last two years, is expected to achieve a substantial increase in card-holders despite signs of a slowdown in the consumer credit market.

The company was the first card firm in Hong Kong to issue Visa credit cards, in 1979, and also issued the first affinity card in 1987.

But its credit card operation is receiving more attention than ever now.

When Guoco Group acquired Overseas Trust Bank in 1993, the group put top priority on expanding its credit card business.

Marketing campaigns were launched to tap the customer bases and staff of OTB and Guoco subsidiary Dao Heng Bank.

Within two years, the number of card-holders rose from 30,000 to 180,000, to make it the sixth-largest card issuer.

After the initial drive, OTB Card began to expand beyond the two banks' customer base.

Hongkong Bank topped the list, followed by Standard Chartered Bank, Citibank, Hang Seng Bank and Bank of China group.

'The turning point in our business is the Compass Card we launched recently,' said Estella Au, chief general manager and director of the card company.

OTB Card recently impressed the market by teaming up with Hutchison Whampoa to launch a smart card called Compass.

The chip card allows bonus points calculations and instant redemption at any of Hutchison's 300 outlets.

The card is seen as a breakthrough in consumer credit as it is the first credit card accepted by retail outlets such as supermarkets.

A few months ago, Bank of China blazed the trail by joining forces with Esso to launch a smart card.

But with only 17 Esso petrol stations, the cards are not as widely used as the Compass card.

'We are now considering adding more features to the Compass cards,' Ms Au said.

The bonus programme only takes up a small amount of space on the chip.

The bonus programme's cash rebate of 0.5 per cent was higher than any other programme, Ms Au said.

The response to the card had been overwhelming, she said.

It is expected that the 50,000 customers holding Hutchison's cards will convert to Compass.

OTB also has its traditional credit cards.

The bank's own credit card allows card-holders to enjoy preferential privileges on certain bank services.

'The OTB card is targeted at credit card-holders, whereas the Compass card focuses on retail customers,' Ms Au said.



OTB pins strategy on smart card