Premier Bank to launch special card for women, mulls on Islamic card

“We are planning to introduce a special card for women to facilitate with financial services as their participation in corporates and engagement in economic activities are increasing day by day,” Mir Shafiqul Islam, Executive Vice President  and Head of Card Division of Premier Bank tells The Business Post’s Ibrahim Hossain Ovi in an interview

The Business Post: What is the present status of credit card business in Bangladesh?

Mir Shafiqul Islam: Bangladesh is moving towards economic prosperity. In line with the economic growth, people’s per capita income is also increasing. It gives a boost to people’s purchase capacity. With the advent and the adoption of new technology, private and public services are being digitised. To cope with the changes, people are increasingly using credit cards and digital payment systems for a hassle-free transaction. 

TBP: Per capita income of people increased. Do you think the use of credit cards is increasing in line with people’s income?

Mir Shafiqul Islam: With the rise in people’s per capita income, consumers’ spending on consumption increased by 9.32 per cent since 2020. As of January-June of 2021, a total of Tk 5,550.80 crore has been transacted through cards in the e-commerce sector, which is 186.76 per cent higher compared to the same period of last year. On the other hand, Tk 9,531.70 crore were transacted through cards in point on sale (POS) machines, which is 41.96 per cent up than the same quarter last year. It shows the use of credit cards has increased significantly with the upsurge in consumers’ purchasing power.

TBP: Do you have any plan to introduce special card for women?

Mir Shafiqul Islam: Women are playing an important role in the country’s economic growth, while their participation in corporates, workforce and economic activities are growing day by day. 

The number of women entrepreneurs are increasing day by day because of the government’s support and massive development of technology. Considering these situations, we have plans to introduce a special card for women to honour them and bring them under the coverage credit cards.

TBP: Islamic Banking is becoming popular in the country. Do you have any plan to launch a shariah-based credit card?

Mir Shafiqul Islam: As Bangladesh is a Muslim-majority country, there is ample opportunity to introduce Islamic cards following the Shariah. At present we have two Islamic banking branches and 20 Islamic banking windows in conventional branches. It is to be noted that there are plans to introduce Islamic credit cards soon in accordance with the Shariah.

TBP: Which class of people currently uses credit cards the most in Bangladesh?

Mir Shafiqul Islam: The use of cards is increasing among businessmen, workers, professionals of all classes and professions. In this case, considering the bank loan risk, TIN-holders and those whose credit score is good and the card is issued based on specific income.

TBP: Covid-19 pandemic has badly impacted economic activities. What are the impacts you faced in the credit card business?

Mir Shafiqul Islam: As we are an import-dependent country, so our economy is completely dependent on the international economy. In such a situation, when the world is facing an invisible enemy, it is also affecting our economy. 

For the last one year and a half, markets of export-oriented countries remained almost closed due to the global recession caused by the pandemic. Most of our business sectors have been negatively affected by the pandemic, many have lost their jobs or their salaries have been reduced, many have moved from the cities to the villages as they were unable to adapt the situation. 

Our CMSME sector has been severely disrupted and many have been forced to close their businesses. Most of these customers used to use credit cards. As a result, the credit card business has faced challenges.

TBP: What kind of challenges the sector is facing to do business?

Mir Shafiqul Islam: A credit card is a collateral-free product. So, there is a possibility of defaulting, which is a great challenge for the sector. On the other hand, ensuring the security of credit card transactions is another challenge. 

TBP: Why does a customer use your card? What are the extra benefits of your card compared to others?

Mir Shafiqul Islam: Since 2004, we have been providing all the facilities of modern credit cards to innumerable customers by ensuring maximum customer service. We have numerous EMI, BOGO and Discount Merchant, free Balaka Lounge access, annual fee waivers through a certain number of transactions.

TBP: What is your future plan to expand your customer base?

Mir Shafiqul Islam: Our vision is to take the credit card to the doorstep of the marginal customer. From daily shopping to utility bills, even cable TV or internet bills, customers can use credit cards at their convenience. We are also considering the introduction of virtual card, contactless card and QR code-based services with the help of technology, which we believe will add new features to card usage.