HSBC opens credit card services in Yogyakarta

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