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HSBC gets no region privileges in Mondex

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Hongkong Bank will have no privileges over other banks when issuing Mondex cards, the bank's marketing and planning senior executive, Eric Tai, says.

His comments follow a recent agreement to resolve the controversy over the ownership of the Mondex franchise in Asia.

Under the arrangement, MasterCard and HSBC Holdings will create a 51:49 joint venture called Mondex Asia.

HSBC Holdings - the owner of the Mondex franchise in Asia - will give a franchise right to Mondex Asia, allowing it to market and distribute Mondex products to banks in the region.

Thereafter, regional banks - including Hongkong Bank itself - will need to sign a contract with Mondex Asia before they can launch Mondex products, and will have to comply with the same regulations regarding the development of smart-card products.

'Hongkong Bank will be treated on the same footing with other banks when it comes to issuing Mondex card products,' Mr Tai said.

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