RIYADH, 23 September 2007 — Saudi Hollandi Bank ((SHB) has launched a smart card that is lifelong and carries no annual fee.
Describing it as the first-of-its-kind in the Kingdom, Phillip King, general manager, personal banking services, SHB, said “we are happy to launch this smart card as a first lifelong credit card for our customers.”
He said the launch of the new smart card was part of a campaign launched by the bank to yield a triple benefit to the customer.
The campaign package includes lifelong service to the customer, free MP3 player to the card-holder, especially if he orders an additional card for the member of his family and the cardholder’s participation in the daily draw that will be held till the end of the promotional campaign in December this year. The winner could avail of a round trip to Dubai on board an Emirates flight and enjoy two-night stay in Dubai for free.
King said the winner would also enjoy special discounts of up to 18 percent on the purchase of tickets and 10 percent on promotional tours conducted by the Emirates.
He pointed out that the campaign was intended to benefit their customers, especially those traveling frequently to their home countries. “Our customers mean a lot to us. This campaign is our way of thanking them for their continued patronage of the bank,” the SHB executive said.
According to the Saudi Arabian Monetary Agency (SAMA), the first quarter loans on credit cards climbed by 68.7 percent compared to the same period last year.
Credit card usage rises dramatically during summer as affluent Saudi nationals go abroad to seek refuge from the summer heat. More and more people are using their credit card as a means to carry out their international transactions.
“Booking flights, hotels and entertainment all on credit cards is very common. I have never seen such dramatic seasonality in countries,” said an industry insider.
The increase, he pointed out, is indicative of Saudis’ growing sophistication when it comes to adopting a greater willingness to use credit card as a means of borrowing.
SAMA statistics show that credit card debt rose to $2.1 billion in the three months to March 31 from $1.25 billion during the same period last year. Credit card lending surged by around 160 percent from 2003 to September 2006.
The Kingdom was the most lucrative credit card market in the region last year with revenue from credit card business accounting for a third of bank earnings, according to a study by UK-based research house Lafferty Group.
The study showed banks make $95 per year on each credit card issued per year in Saudi Arabia compared to just $20 in Egypt.
