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TheThe FutureFuture

PerfectPerfectCredit CardsCredit Cards

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1.Market2. Competition scan

3. Opportunities4. Positioning Strategy

TheThe CContentsontents

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Socio-economicclasses

E2

E1

D

C

B

A2

A1

Numberof people

Millions

10.3

8.2

9.2

8.1

4.1

1.3

1.0

Targetcustomers1.8 millionpeople

The 3 large

cities haveapproximately 1.8million businessClass Karachi Lahore Islamabad

Business classcustomersareA and Bclasses: A class is themajor sourceofdepositsfor ABNAMRO

B class is themainborrower for

ABN AMRO

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-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

CIF

Visa 197,000 231,000 349,000

MasterCard 194,000 255,000 273,000

1 2 3

2002 2003 2004

TheThe MarketMarket

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1. Market

2.Competitionscan3. Opportunities

4. Positioning Strategy

TheThe CContentsontents

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All currency figures in PKR

TheThe CompetitionCompetitionscanscanCompetitorsFigure in Euros

Launched CardsInForce

Exposure(MN)

Utilization(MN)

Spend03

(MN)

Revolver

NCL Delinquency(30+)

Citi 1994 165,000 159 33% 117.60 65% 4% 6%

SCB 1996 160,000 118 30% 80.90 70% 1.5% 3.2%

Al-Falah 2000 200,000 222 20% 36.80 20% 1.5% 3.5%

Union 2003 100,000 96 25% 11.80 60% 3% 3.5%

Total725,000

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Union Citibank SCB BAF

Joining Fees (in Rs.) N/A N/A 500 N/A

Annual Fees (in Rs. p.a) Free Free Free Free

APR (in %) 27% 36% 28 & 36% 27%

BTF Interest Rate (% p.m) 18% 19% 12.5-16.5% 18%

All currency figures in PKR

TheThe CompetitionCompetitionscanscan

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1. Market

2. Competitionscan

3.Opportunities4. Positioning Strategy

TheThe contentscontents

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Low penetration of credit cards in target segments

The size of the market yet to be penetrated is approx1,450,000 individual

The carded population is approx 350,000 personsholding on the average of2 cards each

90% of our customer base have cards and 86% would bewilling to get an ABN AMRO credit card

Market expanding as credit rating services improve &bigger players enter

TheThe opportunitiesopportunities

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Low penetrationof credit cards in target segments

All cards in the market are currently vanilla cardswith unexciting loyalty programs

Gold isno longer anaspirational card- No Platinumin the market

Free for life offers in the market not financiallysustainable by banks

TheThe opportunitiesopportunities

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1. Market

2. Competitionscan

3. Opportunities

4.Positioning Strategy

TheThe contentscontents

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High

(Citibank/SCB)

Features MCB, Askari, Union

Bank AlFalah

Low High

Price

Proposed ABN AMROpositioning

TheTheP

ositioning strategyP

ositioning strategy

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What do customers want? Key survey

findings:

Value Enhancements

Discounts

Special Offers

Value chain, discounts & alliances

Zero cash withdrawal fee

Up front bonus points

Chip-based new shaped card

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Customer Needs and How Our Card Satisfies Them

Convenience facilities

Acceptability convenience

High limits

Inexpensive cash advances

Discounts Style/Prestige among peers

Free card

Utility bill payments facility / NSBC

Global MasterCard acceptability

Higher credit limits compared to industry avg.

Zero cash advance fee

Extensive discount/alliance program MC2 design, advanced chip system

Value chain program/Extensive discounts

and Monthly component of annual fee

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Customer Needs and How Our Card Satisfies Them

Entertainment

Club memberships

Priority services

Airport CIP Access

Travel related features

Access to clubs, cinemas etc

Access to exclusive clubs, etc

Van Gogh banking (Platinum)

Access to CIP/Van Gogh lounges worldwide

Extensive Air Miles program

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Card Features Classic Gold Platinum Phase 1 2005

Supplementary Cards with Flexi

Limits

Alliances per product variant

BTF @ subsidized rate

Installment Plan

Check Book Facility

Cash through ATMs/Branches

The featuresThe features

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Card Features Classic Gold Platinum Phase 1 2005

Concierge Service

Welcome Pack On CD On CD Leather Packs

Business Class Lounges

Cash Advance Limit 50-75% 50-75% 50-75%

Auto-Debit Facility

Automatic Enhancement 9 months 9 months 9 months

The featuresThe features

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Card Features Classic Gold Platinum Phase 1 Mid 2005

Comprehensive Travel Insurance

Credit Shield/Accident Cover

3rd partyPay

Order/Demand Draft

Cheque / Cash Pick up

Mobile POSMachines

Payment through Call Center

The featuresThe features

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Cust

r s

r

ic

ri

t

k

Convenient nk loc tions

Trust

ort

nk

o

i

en service c

r

es

orupper cl

ss

rov i

es personalized services

Offers

anyproducts

Reputablebank

knowledgeable staff

n international bank

rogressivebrand

Secure transactiononphone

Prov ides accurate

onthly

statements

Courteous &experience staff

andleproblemefficiently

Gooduseof tech foreasy

banking

Understandcustomers needs

Gives me recognitionFeel secure

Offers newproducts

Good telephonebanking

ABNAm r

it i BankSCB

Aska ri Bank

Un i

nBank

BankA lfalah

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

-3 -2 -1 0 1 2 3 4

TheThe ABN AMROABN AMROperceptionperception

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Accurate monthlystatements

Understandsandmeetscustomer needs

Good phone banking

services

Customer serviceorientedbank

Personalizedservices

Secure transactionsonphone

Key Associations for ABN:

TheThe ABN AMROABN AMROperceptionperception

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The Future Is Here.

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Microsoft Excel

Worksheet