HSBC opens credit card services in Yogyakarta

The Hong Kong and Shanghai Banking Corporation Limited (HSBC) Indonesia has expanded its credit card business to Surakarta in Central Java and Yogyakarta, expecting to net 100,000 customers in the two cities within three to five years.

Speaking to journalists in Yogyakarta on Friday, senior vice president for personal financial services Lily Budiono said on Friday in Yogyakarta that the decision to start expanding business in the two regions this year was based on a feasibility study.

"We found the two cities have potential economically," she said.

The bank will not open outlets in either city as it can manage the card business from its branch in Semarang and seven prominent banks: BCA, Lippo Bank, Niaga, Danamon, BII, BNI and Permata have also provided support through their branches in the cities.

The response from the local community, according to Lily, is promising. During the first two months of operation in the two cities, for example, the bank received between 1,800 to 2,000 credit card applications a month.

In Semarang, the bank already has 10,000 card holders since it introduced the card service a year ago.

Operating in Indonesia since 1884, the bank previously focused on corporate banking and started to provide personal financial services some four years ago. At present, the personal financial services are provided through its 12 branch offices in Jakarta, Surabaya, Medan, Bandung, Semarang and Batam.

"We will concentrate our business expansion on personal financial services this year in Yogyakarta, Surakarta and Cirebon. Next year it will be in Makassar, Denpasar, Manado, Palembang, Pekanbaru and Balikpapan," Lily said. -- JP