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Table Of Contents

Sr.
No.
1
2
3
4
5
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7
8
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Description
Certificates
Declaration
Acknowledgement
List of Abbreviation
Chapter 1- An Introduction
Chapter 2- Profile
Chapter 3- Theoretical view
Chapter 4- Comparative Study
Chapter 5- Conclusion
Bibliography

Pg.
No.

Declaration

I, KOMAL THORAT STUDENT OF BACHELOR OF


COMMERCE, BANKING AND INSURANCE, SEMESTER-V OF
KERALEEYA SAMAJAMS MODEL COLLEGE DOMBIVLI
HEREBY DECLARE THAT I HAVE COMPLETED THE PROJECT
REPORT ON CONSUMER BEHAVIOR IN SELECTING
CREDIT CARDS FOR THE ACADEMIC YEAR 2014-2015.

THE
INFORMATION
SUBMITTED
IS
TRUE
ORIGINAL TO THE BEST OF MY KNOWLEDGE.

AND

KOMAL THORAT
BACHELOR
COMMERCE
BANKING AND
INSURANCE

OF

ACKNOWLEDGEMENT
I am grateful to the college for giving me an opportunity
for doing this project, I am equally grateful and remain
indebted to my guide Mrs. ______ for being a source of
inspiration and for her constant support in the design,
implementation and evaluation of the project.

I am thankful to her for their constant constructive


criticism and invaluable suggestions, which benefited me
a lot while developing the project on FACILITIES
PROVIDED BY BANKS TO CHILDREN- A COMPARATIVE
STUDY.
She has been a constant source of Inspiration and
Motivation for hard work. She has been very co-operative
throughout this project work. Through this column, it
would be my utmost pleasure to express my warm thanks
to her for encouragement, co-operation and consent
without which I mightnt be able to accomplish this
project.

I also express my gratitude to Mrs._______ for providing


me the infrastructure to carry out the project and to all
staff members who were directly and indirectly
instrument in enabling me to stay committed for the
project.

Ashwini
Pokharkar

Chapter 1
An Introduction

Chapter One

An Introduction
INTRODUCTION TO MARKETING

Marketing is the process of communicating the value of a product or service


to customers, for the purpose of selling that product or service.
Marketing can be looked at as an organizational function and a set of processes for
creating, delivering and communicating value to customers, and customer
relationship management that also benefits the organization. Marketing is
the science of choosing target markets through market analysis and market
segmentation, as well as understanding consumer behavior and providing superior
customer value. From a societal point of view, marketing is the link between a
society's material requirements and its economic patterns of response. Marketing
satisfies these needs and wants through exchange processes and building long term
relationships.

Defination
The management process through

which goods

and

services move from concept to the customer. It includes


the coordination of

four elements called the 4

p's

of

marketing:
(1)

identification, selection and development of

a product,
(2) determination of its price,
(3)

selection

of

a distribution

channel to reach the customer's place, and


(4) development and implementation of a promotional
strategy.
For

example,

new apple products are developed to

include improved applications and systems, are set a


different prices depending on how much capability the
customer desires, and are sold in places where other
apple products are sold. In order to promote the device,
the company featured its debut at tech events and is
highly advertised on the web and on television.
marketing is

based

on

the business in terms of customer

thinking

about
needs and

their satisfaction. Marketing differs from selling because


(in

the words of harvard

business

school's retired professor of marketing theodore c. Levitt)


"selling concerns itself with the tricks and techniques of
getting people to exchange their cash for your product. It
is not concerned with the values that the exchange is all
about. And it does not, as marketing invariable does, view
the entire business process as consisting of a tightly
integrated effort to discover, create, arouse and satisfy
customer needs." in other words, marketing has less to
do with getting customers to pay for your product as it
does developing a demand for that product and fulfilling
the customer's needs.
Introduction to consumer behaviour

consumer

behaviour is the study of individuals,

groups, or organizations and the processes they use to


select,

secure,

and

dispose

of

products,

services,

experiences, or ideas to satisfy needs and the impacts


that these processes have on the consumer and society. It
blends

elements

from psychology, sociology, social anthropology,


marketing and economics. It attempts to understand the

decision-making processes of buyers, both individually


and in groups such as how emotions affect buying
behaviour.
consumers

It

studies

such

characteristics

as demographics and

of

individual
behavioural

variables in an attempt to understand people's wants. It


also tries to assess influences on the consumer from
groups such as family, friends, reference groups, and
society in general.
Customer behaviour study is based on consumer buying
behaviour, with the customer playing the three distinct
roles of user, payer and buyer. Research has shown that
consumer behaviour is difficult to predict, even for
experts

in

the

field. Relationship

marketingis

an

influential asset for customer behaviour analysis as it has


a keen interest in the re-discovery of the true meaning of
marketing through the re-affirmation of the importance of
the customer or buyer. A greater importance is also
placed on consumer retention, customer relationship
management, personalisation, customisation and one-toone marketing. Social functions can be categorized
into social choice and welfare functions.

Each method for vote counting is assumed as social


function but if arrows possibility theorem is used for a
social function, social welfare function is achieved. Some
specifications

of

the

social

functions

are

decisiveness, neutrality, anonymity, monotonicity,unanim


ity, homogeneity and weak and strong pareto optimality.
No social choice function meets these requirements in an
ordinal

scale

simultaneously.

The

most

important

characteristic of a social function is identification of the


interactive effect of alternatives and creating a logical
relation with the ranks. Marketing provides services in
order to satisfy customers. With that in mind the
productive system is considered from its beginning at the
production level, to the end of the cycle, the consumer
(kioumarsi et al., 2009).

About the Report


Title of the study:- The present study is titled as
A Project report on consumer behavior in
selecting credit cards.

Objective of the study:- The following are the


objective of the study
Tostudytheawarenessofbankcustomersaboutcreditcards.
Toassesstheeligiblecreditlimitsandtheactualcreditlimits
availedbythecardholders.
Toexaminetheextentofusageofcreditcardsbycardholders.
Tofindouttheattitudeofcardholderstowardscreditcards.
Tooffersuggestionsforfurtherimprovement

Period of the study:- The period of the present


study is from June 2014-September 2014.

Limitations of the Study:- The present study has


got all the limitations of case study method.

Data and Methodology:- For the purpose of the


present study I had referred internet , books,
newspaper to collect information.

BUYING PROCESS

The Customer Buying Process (also called a Buying


Decision Process) describes the process your customer
goes

through

before

they

buy

your

product.

Understanding your customers buying process is not only


very important for your Salespeople, it will also enable
you to align your sales strategy accordingly.
The process has been interpreted by many scholars over
the years; however, the five stages framework remains a
good way to evaluate the customers buying process.
John Dewey first introduced the following five stages in
1910:
1.Problem/Need Recognition This is often identified as
the first and most important step in the Customers
Decision Process. A purchase cannot take place without
the recognition of the need. The need may have been
triggered by internal stimuli (such as hunger or thirst) or
external stimuli (such as advertising or word of mouth).

2. Information Search Having recognised a problem or


need, the next step a customer may take is the
Information Search stage, in order to find out what they
feel is the best solution. This is the buyers effort to
search internal and external business environments, in
order to identify and evaluate information sources related
to the central buying decision. Your customer may rely on
print, visual, online media or word of mouth for obtaining
information.

3. Evaluation of Alternatives As you might expect,


consumer will evaluate different products or brands at
this stage on the basis of alternative product attributes
those which have the ability to deliver the benefits the
customer is seeking. A factor that heavily influences this
stage is the customers attitude. Involvement is another
factor

that

influences

the

evaluation

process.

For

example, if the customers attitude is positive and


involvement is high, then they will evaluate a number of
companies or brands; but if it is low, only one company or
brand will be evaluated.

4. Purchase Decision The penultimate stage is where


the purchase takes place. Philip Kotler (2009) states that
the final purchase decision may be disrupted by two
factors: negative feedback from other customers and the
level of motivation to accept the feedback. For example,
having gone through the previous three stages, a
customer chooses to buy a new telescope. However,
because his very good friend, a keen astronomer, gives
him negative feedback, he will then be bound to change
his

preference.

Furthermore,

the

decision

may

be

disrupted due to unforeseen situations such as a sudden


job loss or relocation.

5. Post-Purchase Behaviour In brief, customers will


compare products with their previous expectations and
will be either satisfied or dissatisfied. Therefore, these
stages are critical in retaining customers. This can greatly
affect the decision process for similar purchases from the
same company in the future, having a knock-on effect at
the

Information

Search

stage

and

Evaluation

of

Alternatives stage. If your customer is satisfied, this will


result in brand loyalty, and the Information Search and
Evaluation of Alternative stages will often be fast-tracked
or skipped altogether.

On the basis of being either satisfied or dissatisfied, it is


common for customers to distribute their positive or
negative feedback about the product. This may be
through reviews on website, social media networks or
word of mouth. Companies should be very careful to
create positive post-purchase communication, in order to
engage customers and make the process as efficient as
possible.

ROLES OF CONSUMER BEHAVIOUR


Consumer Behaviour refers to the study of buying
tendencies of consumers. An individual who goes for
shopping does not necessarily end up buying products.
There are several stages a consumer goes through before
he finally picks up things available in the market. Various
factors, be it cultural, social, personal or psychological
influence the buying decision of individuals.

There are ideally two different ways which enable


marketers to understand their consumers.
Primary Research

Secondary Research
Primary Research - Primary Research refers to a
research methodology where marketers interact with
consumers directly and gather as much information as
they can. Information is generally collected through
surveys, questionnaires, feedback forms, interviews etc.
Secondary Research - Secondary Research often refers
to relying on information which has been collected by
others at some point of time.
The background and family status of an individual also
influence his/her buying behaviour.
Selling a laptop to an individual who is not much
educated would be pointless. Remember consumers
would show interest in your products only if they are of
any use to them or their immediate family members. A
low grade worker would never be interested in purchasing
business suits or formal shirts.
Canned juices are a hit among middle and higher income
group where individuals are really conscious about their
health and fitness. Individuals who live hand to mouth

would never spend on sugar free tablets, health


supplements, or for that matter Diet Coke.
It is also important to give complete information to endusers. Do not hide anything from them. It is not ethical.
All tobacco products come with a warning. Individuals
should be familiar with not only the benefits but also the
side effects of the products.
Marketers must also take into account:
Age group of consumers
Geographical location
Lifestyle of consumers
Social Status of consumers
Funky designs, loud colours would be a hit among
teenagers whereas middle aged and elderly people would
prefer subtle colours and sophisticated designs.
Salwar Suits are extremely popular in North India whereas
females prefer saris and skirt blouses in eastern and
southern parts of India.

Individuals from posh localities and good jobs would show


keen interest towards buying exclusive and unique
products as compared to individuals who do not come
from an affluent background.

Chapter 2

Introduction Of
Credit
Cards

CREDIT CARDS

A credit card is a payment card issued to users as a


system of payment. It allows the cardholder to pay for
goods and services based on the holder's promise to pay
for them. The issuer of the card creates a revolving
account and grants a line of credit to the consumer (or
the user) from which the user can borrow money for
payment to a merchant or as a cash advance to the user.
A credit card is different from a charge card: a charge
card
credit cards allow the consumers a continuing balance of
debt, subject to interest being charged. A credit card also
differs from a cash card, which can be used like currency
by the owner of the card. A credit card differs from a
charge card also in that a credit card typically involves a
third-party entity that pays the seller and is reimbursed
by the buyer, whereas a charge card simply defers
payment by the buyer until a later date.
The size of most credit cards is 3 38 2 18 in (85.60
53.98 mm),[3] conforming to the ISO/IEC 7810 ID-1

standard. Credit cards have a printed

[4]

or

embossed bank card number complying with the ISO/IEC


7812 numbering standard. Both of these standards are
maintained and further developed by ISO/IEC JTC 1/SC
17/WG 1. Before magnetic stripe readers came into
widespread use, plastic credit cards issued by many
department stores were produced on stock ("Princess" or
"CR-50") slightly longer and narrower than 7810.

HISTORY

Credit cards in Edward Bellamy's Looking


Backward
The concept of using a card for purchases was described
in 1887 by Edward Bellamy in his utopian novel Looking
Backward. Bellamy used the term credit card eleven
times in this novel, although this referred to a card for
spending a citizen's dividend from the government, rather
than borrowing.[6] Roughly similar in functions to the
current day U.S. Social Security Cards with their Social
Security numbers.
Charge coins, medals, and so on
Charge coins and other similar items were used in the
late 1800s to the 1930s. They came in various shapes
and sizes; with materials made out of celluloid (an early
type of plastic), copper, aluminum, steel, and other type
of whitish metals.Each charge coin usually had a little
hole, enabling it to be put in a key ring like a regular key.
These charge coins were usually given to customers who

had charge accounts in department stores, hotels, and so


on. A charge coin usually had the charge account number
along with the merchant's name and logo.
The charge coin offered a simple and fast way to copy a
charge account number to the sales slip, by imprinting a
sales slip with an imprint of the charge coin. This
quickened the process of copying, which was previously
done by handwriting. It also reduced the amount of errors
during copying, by having a standardised form of
numbers on the sales slip, instead of various kind of
handwriting style.
Because the customer's name was not on the charge
coin, almost any person could use it. This sometimes lead
to a case of mistaken identity, either accidentally or
intentionally, by acting on behalf of the charge account
owner or out of malice to defraud both the charge
account owner and the merchant. Beginning in the 1930s,
merchants started to move from charge coins to the
newer Charga-Plate.

Charge cards from Western Union, oil companies,


and other companies
Western Union began issuing charge cards to its frequent
customers in 1921. The charge cards from this time were
printed on paper card stock. In 1938, several companies
started to accept each other's cards. In the 1940s, oil
companies in the United States used them to sellfuel and
other oil based products to a growing number
of automobile owners.
The Charga-Plate
The Charga-Plate, developed in 1928, was an early
predecessor to the credit card and used in the U.S. from
the 1930s to the late 1950s. It was a 2 in 1 in
rectangle of sheet metal related to Addressograph and
military dog tag systems. It was embossed with the
customer's name, city, and state. It held a small paper
card on its back for a signature. In recording a purchase,
the plate was laid into a recess in the imprinter, with a
paper "charge slip" positioned on top of it. The record of
the transaction included an impression of the embossed
information, made by the imprinter pressing an inked
ribbon against the charge slip.[10] Charga-Plate was a

trademark of Farrington Manufacturing Co. Charga-Plates


were issued by large-scale merchants to their regular
customers, much like department store credit cards of
today. In some cases, the plates were kept in the issuing
store rather than held by customers. When an authorized
user made a purchase, a clerk retrieved the plate from
the store's files and then processed the purchase.
Charga-Plates speeded back-office bookkeeping and
reduced copying errors that were done manually in paper
ledgers in each store.
The Air Travel Card
In 1934, American Airlines and the Air Transport
Association simplified the process even more with the
advent of the Air Travel Card.They created a numbering
scheme that identified the issuer of the card as well as
the customer account. This is the reason the
modernUATP cards still start with the number 1. With an
Air Travel Card, passengers could "buy now, and pay
later" for a ticket against their credit and receive a fifteen
percent discount at any of the accepting airlines. By the
1940s, all of the major domestic airlines offered Air Travel
Cards that could be used on 17 different airlines. By 1941

about half of the airlines' revenues came through the Air


Travel Card agreement. The airlines had also started
offering installment plans to lure new travelers into the
air. In October 1948, the Air Travel Card became the first
inter-nationally valid charge card within all members of
the International Air Transport Association.
Early general purpose charge cards: Diners Club,
Carte Blanche, and American Express
The concept of customers paying different merchants
using the same card was expanded in 1950 by Ralph
Schneider and Frank McNamara, founders of Diners Club,
to consolidate multiple cards. The Diners Club, which was
created partially through a merger with Dine and Sign,
produced the first 'general purpose' charge card and
required the entire bill to be paid with each statement.
That was followed by Carte Blanche and in 1958
by American Express which created a worldwide credit
card network (although these were initially charge cards
that later on acquired credit card features).

BankAmericard and Master Charge


Until 1958, no one had a stable revolving credit financial
system by a third-party bank; that was generally
accepted by a large number of merchants, as opposed to
merchant-issued revolving cards accepted by only a few
merchants. A dozen attempts by small American banks
had been attempted, but didn't last long. In September
1958, Bank of America launched
the BankAmericard in Fresno, California. BankAmericard
became the first successful recognizably modern credit
card and with its overseas affiliates, in 1977 changed its
name to Visa. In 1966, the ancestor of MasterCard was
born when a group of banks established Master Charge to
compete with BankAmericard; it received a significant
boost when Citibank merged its own Everything
Card (launched in 1967) into Master Charge in 1969.
Early credit cards in the U.S., of which BankAmericard
was the most prominent example, were mass-produced
and mass mailed unsolicited to bank customers who were
thought to be good credit risks. But, "They have been
mailed off to unemployables, drunks, narcotics addicts
and to compulsive debtors, a process President Johnson's

Special Assistant Betty Furness found very like 'giving


sugar to diabetics'." These mass mailings were known as
"drops" in banking terminology, and were outlawed in
1970 due to the financial chaos they caused. However, by
the time the law came into effect, 100 million credit cards
had been dropped into the U.S. population. After 1970,
only credit card applications could be sent unsolicited in
mass mailings.
Development of credit cards outside North America
The fractured nature of the U.S. banking system under
the GlassSteagall Act meant that credit cards became an
effective way for those who were traveling around the
country to move their credit to places where they could
not directly use their banking facilities. There are now
countless variations on the basic concept of revolving
credit for individuals (as issued by banks and honored by
a network of financial institutions), including organizationbranded credit cards, corporate-user credit cards, store
cards and so on.
In 1966, Barclaycard in the UK launched the first
credit card outside of the U.S.

Although credit cards reached very high adoption levels


in the US, Canada and the UK in the mid twentieth
century, many cultures were more cash-oriented, or
developed alternative forms of cash-less payments, such
as Carte bleue or the Eurocard (Germany, France,
Switzerland, and others). In these places, adoption of
credit cards was initially much slower. Because of strict
regulations regarding banking system overdrafts, some
countries, France in particular, were much faster to
develop and adopt chip-based credit cards which are now
seen as major anti-fraud credit devices. Debit
cards and online banking (using either ATMs or PCs) are
used more widely than credit cards in some countries. It
took until the 1990s to reach anything like the percentage
market-penetration levels achieved in the US, Canada, or
UK. In some countries, acceptance still remains low as the
use of a credit card system depends on the banking
system of each country. While in others, a country
sometimes had to develop its own credit card network,
e.g. UK's Barclaycard
and Australia's Bankcard. Japan remains a very cash
oriented society, with credit card adoption being limited
mainly toward the largest of merchants; although stored

value cards (such as telephone cards) are used


as alternative currencies, with the trend is toward RFIDs
based systems inside cards, cellphones, and other
objects.
Vintage, old, and unique credit cards as collectibles
The design of the credit card itself has become a major
selling point in recent years.The value of the card to the
issuer is often related to the customer's usage of the
card, or to the customer's financial worth. This has led to
the rise of Co-Brand and Affinity cards, where the card
design is related to the "affinity" (a university or
professional society, for example) leading to higher card
usage. In most cases a percentage of the value of the
card is returned to the affinity group.
A growing field of numismatics (study of money), or more
specifically exonumia (study of money-like objects), credit
card collectors seek to collect various embodiments of
credit from the now familiar plastic cards to older paper
merchant cards, and even metal tokens that were
accepted as merchant credit cards. Early credit cards
were made of celluloidplastic, then metal and fiber, then

paper, and are now mostly polyvinyl chloride (PVC)


plastic.

EVOLUTION
Many people think of credit cards as a modern day
convenience, but the history of the earliest credit cards
actually dates back to the early 1900s. Today, major
companies like Discover, Visa, Mastercard, and American
Express are a common sight. The concept of using credit
to purchase goods and services, however, is something
that is not new. Millions of Americans currently hold some
form of credit card debt. While credit cards can create
more debt for many households, they are also a
convenient way to make purchases, and can serve people
well in the event of an emergency. A long time ago,
people knew that the use of credit was a helpful tool for
those who needed something immediately, and the
history of credit cards shows how far the industry has
come.
Before major companies and banks issued actual credit
cards, individual retailers, merchants, and other providers
would offer lines of credit to their customers. While the
first credit card invented would not come along until the
1940s, this method of using credit is often attributed as
the grandfather of credit cards. Originally, this was saved

for the oil producers in order to provide credit to


shareholders and those interested in obtaining land to
pursue oil, or to retrieve and produce oil for consumption.
Smaller grocers and department stores followed suit, and
offered lines of credit to customers who could prove
somehow that the debt could be repaid. In most cases,
collateral was taken as a guarantee that the credit would
be paid back.
The first credit card invented was dreamed up by a man
named John Biggins, and was called the "Charg-It" card.
This card was created in 1946. Biggins was a banker
living in Brooklyn, New York, and he came up with an
easier more direct system of credit. When a customer
used the Charg-It card, a bill for that person's purchase
was also sent to his bank for review. Instead of the
customer paying the merchant directly, the bank would
pay them. There were some terms even then back in the
history of credit cards. For example, all purchases had to
be made locally and anyone with the Charg-It card had to
be an actual customer of Biggin's bank. Regardless of
these terms, the whole process was a success.

Another early credit card was the Diners Club card, which
was invented in 1949. The idea for this credit card came
about when a businessman by the name of Frank
McNamara went out for an important dinner. While he
was out, he realized he had left his wallet at home and
was unable to pay for the dinner. Somehow he managed
to be able to pay, but had the idea that there had to be
other ways to pay for things other than cold, hard cash.
Soon he was working with his business partner and they
developed the Diners Club Card, which was originally on a
piece of cardboard. Just two years later, over 20,000
people had a Diners Club Card. It was used mostly for
eating and entertainment and was known as a charge
card, meaning that the balance had to be paid completely
off each month.
American Express had been in existence since the 1850s,
but it was not until 1958 that the company introduced
their first credit card on a small piece of purple plastic. In
all of the history of credit cards, AMEX was the first to use
plastic in their material instead of paper or cardboard.
Soon, American Express had taken off and became the
most widely used credit card in the country, and could
claim one million cardholders within the first five years of

originating. Today, banks and corporations across the


globe issue credit cards to people, and they are perhaps
the most common form of payment in the world.
Everything from airplane tickets to cosmetics and
groceries can be purchased with a credit card. The
Internet has expanded the use of credit cards, making
them the number one preferred method of payment next
to cash.

TYPES OF CREDIT CARDS


Credit cards have come to the rescue of people with hot
pockets. They, nowadays, put their trust in the innovation
of credit cards where they need not carry large sums of
money with them; instead simply carry a credit card
which is linked up with their bank account enabling them
to make payments without batting an eye.
It is a trend, now, to make payments at a hotel,
restaurant or a departmental store/ mall using a credit
card. Because of the fear of one's bank account details
being swiped and stolen, more and more credit cards are
made secure so that even if a credit card is stolen, the
money in one's bank account stays safe.
Credit cards now are of various types with different fees,
interest rates and rewarding programs. When applying for
a credit card, it is important to learn of their diverse types
to know the one best suited to their lifestyle and financial
status. Different types of credit cards available by banks
and other companies/organizations are briefly described
below.

Standard Credit Card: This is the most commonly used.


One is allowed to use money up to a certain limit. The
account holder has to top up the amount once the level of
the balance goes down. An outstanding balance gets a
penalty charge.

Premium Credit Card: This has a much higher bank


account and fees. Incentives are offered in this over and
above that in a standard card. Credit card holders are
offered travel incentives, reward points, cask back and
other rewards on the use of this card. This is also called
the Reward Credit Card. Some examples are: airlines
frequent

flier

credit

card,

cash

back

credit

card,

automobile manufacturers' rewards credit card. Platinum


and Gold, MasterCard and Visa card fall into this category.
Secured Credit Card: People without credit history or
with tarnished credit can avail this card. A security
deposit is required amounting to the same as the credit
limit. Revolving balance is required according to the
'buying and selling' done.

Limited Purpose Credit Card: There is limitation to its


use and is to be used only for particular applications. This
is used for establishing small credits such as gas credits
and credit at departmental stores. Minimal charges are
levied.

Charge Credit Card: This requires the card holder to


make full payment of the balance every month and
therefore there is no limit to credit. Because of the
spending flexibility, the card holder is expected to have a
higher income level and high credit score. Penalty is
incurred if full payment of the balance is not done in time.

Specialty Credit Card: is used for business purposes


enabling

businessmen

to

keep

their

businesses

transactions separately in a convenient way. Charge


cards and standard cards are available for this. Also,
students

enrolled

in

an

accredited

college/university course can avail this benefit.

4-year

Prepaid Credit Card: Here, money is loaded by the card


holder on to the card. It is like a debit card except that it
is not tied up with a bank account.

LEADING BANK PROVIDING CREDIT CARDS

YES BANK Amex Credit Cards


YES BANK in

partnership

with

American

Express

is

delighted to present a premium range of Cards that offers


a host of benefits and privileges like never before.
Value Added benefits offered on the Cards
American Express Platinum Reserve Credit Card

Enjoy exclusive privileges on international and


domestic flights and hotels

Pay for travel directly with your Membership Rewards


Points

Relax with complimentary access to over 600 airport


lounges around the world

Tee off with complimentary golf at leading golf


courses in India and abroad

Leading Membership Rewards Programme

Enjoy Platinum Concierge Services 24x7 for anything


that you may need - dining reservations, delivering
flowers and more
American Express Platinum Travel Credit Card

Enjoy the fastest way to complimentary travel


complete with flight tickets aboard IndiGo and a luxury
stay at the Taj Group

Receive your Welcome Gift* of 5,000 Bonus


Membership Rewards Points redeemable for a Rs.4,000
IndiGo voucher

Experience the renowned American Express Platinum


Service
American Express Gold Card

Automatic enrolment into one of the most powerful


programmes in the country - The Membership Rewards
Programme

Earn 1,000 bonus Membership Rewards Points


monthly for simply using your Card 4 times in a month*

Experience the Gold Standard of Service with Zero


Lost Card Liability and Online Fraud Protection

Flexibility in spending with no pre-set spending limit

CANARA CREDIT CARD


Canara Credit Card is designed to meet your life style
with anything you might need to make your experience a
sheer pleasure. No matter where you are across the
world, luxury and comfort is always at hand.
Our cards enjoy the privilege of worldwide acceptance
and free insurance coverage against the risk of death due
to accident. Canara Credit Cards are backed by a wide
network of CANARA BANK branches and 24 Card Service
centers located at many important cities spread across
the country. CANARA BANK is the principal member of
VISA-WORLDWIDE and MASTERCARD INC.

Our credit card products

1.VISA Credit Cards


Classic
Gold ( EMV )
2.Master Credit Cards
Standard

Gold ( EMV )
3.Corporate Credit Card ( EMV )

CANARA CREDIT CARD PRIVILEGES:


Canara Credit Card is accepted throughout the world
Minimum Gross income to get CANARA CARD is
Rs.100,000 p.a. only.
Liberal Card limit. Get up to 30% of your gross annual
income as your Card limit. Fixing of the limit is at the
sole discretion of Canara Bank.
Cash withdrawal limit up to 50% of your card limit
(Maximum Rs. 50,000 only).
Cash withdrawal charges only Rs.30 per thousand.
Minimum Rs.30 only.
Free Credit period from 20-50 days
Cash withdrawal facility at all ATMs of Canara bank &
other Bank ATMs.

No Interest on cash withdrawal if paid by the


due date. If not paid by the DUE DATE,
interest is charged from DUE DATE only and
not from the DATE OF CASH
WITHDRAWAL.
No financial charges! i.e., interest on subsequent
transactions till it becomes due, for the customers
having revolving facility.
Opt for Revolving Payment system and pay only 5%
of the billed amount and defer the
payment. Carried over balance attracts service
charges at 2.5% p.m. plus applicable
service tax only.
We provide free accident Insurance to you and your
spouse too against the risk of
death due to accident.
Lost Card protection! Liability restricted to Rs.1,000
only from the time of reporting.
Free card replacement in case of mutilation / loss of
card.

Free SMS alerts on all transactions. Please provide


your Mobile Phone number for activating this facility.

BANK OF BARODA CREDIT CARDS


Bank of Baroda credit cards are being offered through the
100% subsidiary of Bank of Baroda, Bobcards Ltd.
Profile of bank of baroda credit cards business
Bank of Baroda credit card also known as Bobcards Ltd is
a 100% subsidiary of the reputed Indian Bank, Bank of
Baroda. Bank of Baroda credit card or Bobcards Ltd. is a
credit card company and it offers wide varieties of credit
card to its customers, perfectly tailor made to suit the
needs of the Indian customers. Bank of Baroda credit card
is being headed by Dr. Anil K. Khandelwal, Chairman and
CMD, Bank of Baroda and Mr. B.B.Garg, Managing
Director of the company.

TYPES OF CREDIT CARDS OFFERED BY BANK OF


BARODA

Nextgen Bobcard Gold - a special type of credit


cards for students.

Bobcard Gold - Are affiliated to both Visa &


Mastercard International and are accepted globally in

over 29 million locations and 800,000 ATMs the world


over.

Bobcard Exclusive Woman -this card is tailor


made to meet the needs of today's woman. This card
can be accessed in more than 29 million locations
and more than 800,000 ATMs the world over.

Bobcard Exclusive Youth - this card is tailor


made to meet the needs of today's Indian youth. This
card can be accessed in more than 29 million
locations and more than 800,000 ATMs the world
over.

Bobcard Silver - this card has affiliation of Visa


international and is accepted the world over.

Bobcard Corporate Global - Affiliated to Visa


International, this card can be accessed throughout
the world in more than 30 million counters and in
more than 8,00,000 Visa ATM's the world over.

Chapter 2
Case study

ICICI Bank
PROFILE
Ms. Chanda Kochhar is the Managing Director and Chief
Executive Officer of ICICI Bank Limited, India's secondlargest bank and the largest in the private sector. She is
widely recognised for her role in shaping the retail
banking sector in India and for her leadership of the ICICI
Group, as well as her contributions to various forums in
India and globally.

Ms. Kochhar began her career, with erstwhile ICICI


Limited in 1984 and was elevated to the Board of
Directors of ICICI Bank in 2001. She was instrumental in
establishing ICICI Bank during the 1990s, and
subsequently headed the infrastructure finance and
corporate banking business in ICICI Limited. In 2000, she
took on the challenge of building the nascent retail
business, with strong focus on technology, innovation,
process reengineering and expansion of distribution and
scale. The Bank achieved a leadership position in this
business. During 2006-2007, she successfully led the
Bank's corporate and international banking businesses
during a period of heightened activity and global
expansion by Indian companies. From 2007 to 2009, she
was the Joint Managing Director & Chief Financial Officer
during a critical period of rapid change in the global
financial landscape. She was elevated as Managing
Director & CEO of ICICI Bank in 2009 and is responsible
for the Bank's diverse operations in India and overseas.
She also chairs the boards of the Bank's principal

subsidiaries, which include India's leading private sector


life and general insurance companies.

She was conferred with the Padma Bhushan, one of


India's highest civilian honours, in 2011.

INTRODUCTION OF ICICI

ICICI Bank is an Indian


multinational banking and financial services company
headquartered in Vadodara. As of 2014 it is the second
largest bank in India in terms of assets and market
capitalization. It offers a wide range of banking products
and financial services for corporate and retail
customers through a variety of delivery channels and
specialized subsidiaries in the areas of investment
banking,life, non-life insurance, venture capital and asset
management. The Bank has a network of 3,800 branches
and 11,162 ATMs in India, and has a presence in 19
countries.

ICICI Bank is one of the Big Four banks of India, along


with State Bank of India, Punjab National Bank and Bank
of Baroda. The bank has subsidiaries in the United
Kingdom, Russia, and Canada; branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and
Dubai International Finance Centre; and representative
offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. The
company's UK subsidiary has also established branches in
Belgium and Germany.
In March 2013, Operation Red Spider showed highranking officials and some employees of ICICI Bank
involved in money laundering. After
a government inquiry, ICICI Bank suspended 18

employees and faced penalties from the Reserve Bank of


India in relation to the activity.

HISTORY OF ICICI BANK

ICICI Bank was established by the Industrial Credit and


Investment Corporation of India (ICICI), an Indian
financial institution, as a wholly owned subsidiary in
1994. The parent company was formed in 1955 as a jointventure of the World Bank, India's public-sector banks
and public-sector insurance companies to provide project
financing to Indian industry. The bank was initially known
as the Industrial Credit and Investment Corporation of
India Bank, before it changed its name to the
abbreviated ICICI Bank. The parent company was later
merged with the bank.
ICICI Bank launched internet banking operations in 1998.
ICICI's shareholding in ICICI Bank was reduced to
46 percent, through a public offering of shares in India in
1998, followed by an equity offering in the form
of American Depositary Receipts on the NYSE in 2000.
ICICI Bank acquired the Bank of Madura Limited in an allstock deal in 2001 and sold additional stakes to
institutional investors during 2001-02.
In the 1990s, ICICI transformed its business from a
development financial institution offering only project
finance to a diversified financial services group, offering a
wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI
Bank. In 1999, ICICI become the first Indian company and
the first bank or financial institution from non-Japan Asia
to be listed on the NYSE.

In 2000, ICICI Bank became the first Indian bank to list on


the New York Stock Exchange with its five million
American depository shares issue generating a demand
book 13 times the offer size.
In October 2001, the Boards of Directors of ICICI and ICICI
Bank approved the merger of ICICI and two of its wholly
owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with
ICICI Bank. The merger was approved by shareholders of
ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002 and by the High
Court of Judicature at Mumbai and the Reserve Bank of
India in April 2002.
In 2008, following the 2008 financial crisis, customers
rushed to ICICI ATMs and branches in some locations due
to rumours of adverse financial position of ICICI Bank. The
Reserve Bank of India issued a clarification on the
financial strength of ICICI Bank to dispel the rumours.

BANKING PRODUCTS
Savings Account
Enjoy enhanced value and benefits with an ICICI Bank
Savings Account.
Family Wealth Account
Share your ICICI Bank Wealth Management benefits with
your entire family.
Home Loans
Build your dream home with one of the leading Home
Loan providers.
Car Loans
Own the luxury car of your dreams with an ICICI Bank Car
Loan.
Foreign Exchange Services
Simplify your travel with our Foreign Currency, Travellers
Cheques and Travel Card.
Lockers

Keep your valuables safe with ICICI Bank's Safe Deposit


Locker facilities.
Demat Account
Enjoy 24x7 access to your holdings with a Demat Account
linked to your Wealth Account.

Go green initiative
The Go Green Initiative is an organisation wide initiative
that moves beyond moving people, processes and
customers to cost effective automated channels to build
awareness and consciousness of our environment, our
nation and our society.
Objective
ICICI Bank's Green initiative is to make healthy
environment in the organisation i.e.; to create
intrapersonal skills amongs the customer and
understanding between employees of the organisation.
Broad objectives of the ICICI are:

1.

to assist in the creation, expansion and

modernisation of private concerns.


2.

to encourage the participation of internal and

external capital in the private concerns.


3.

to encourage private ownership of industrial

investment.

Green products and services


Instabanking
It is the platform that brings together all alternate
channels under one umbrella and gives customers the
option of banking through Internet banking, i-Mobile
banking, IVR Banking.
Vehicle Finance
Auto loans offer 50% waiver on processing fee on car
models which uses alternate mode of energy. The models
identified for the purpose are, Maruti's LPG version of
Maruti 800, Omni and Versa, Hyundai's Santro Eco, Civic

Hybrid of Honda, Reva electric cars, Tata Indica CNG and


Mahindra Logan CNG versions .
Carbon Footprint Calculator
Inputs include region, user input of the distance traveled
in a particular medium of transport daily, electricity
consumed per month and LPG cylinder/piped natural gas
used per month. It calculates the net carbon footprint to
create awareness and sensitize people about the
environment. It also shows the world's and India's
average carbon footprint .

Subsidiaries
Domestic

ICICI Prudential Life Insurance Company Limited

ICICI Lombard General Insurance Company Limited

ICICI Prudential Asset Management Company Limited

ICICI Prudential Trust Limited

ICICI Securities Limited

ICICI Securities Primary Dealership Limited

ICICI Venture Funds Management Company Limited

ICICI Home Finance Company Limited

ICICI Investment Management Company Limited

ICICI Trusteeship Services Limited

ICICI Prudential Pension Funds Management

Company Limited
International

ICICI Bank UK PLC

ICICI Bank Canada

ICICI Bank Eurasia Limited Liability Company

ICICI Securities Holdings Inc.

ICICI Securities Inc.

ICICI International Limited

Awards
2004

Best Bank in India Award presented by Euromoney

Magazine[38]
2007

ICICI Bank has been conferred the Euromoney Award

2007 for the Best Bank in the Asia-Pacific Region

ICICI Bank wins the Excellence in Remittance

Business award by The Asian Banker[40]


2009

ICICI Bank bags the "Best bank in SME financing

(Private Sector)" at the Dun & Bradstreet Banking awards


2011

ICICI Bank is the only Indian brand to figure in the

brandz Top 100 Most Valuable Global Brands Report,


second year in a row
2012

Airtel, ICICI among 'top 100 global brands'

2013

ICICI Bank has been adjudged winner at the Express

IT Innovation Award under the Large Enterprise category

FUTURE OF CRDIT CARDS: 4 BIG TRENDS ON THE


HORIZON
At a recent conference devoted to travel and credit card
rewards, executives from Chase, Barclaycard, US Bank,
Capital One and American Express were on hand to share
their views on the future of credit cards and there was
a broad consensus on where the industry is going in the
next few years.
Here are four of the biggest credit card trends on the
horizon that emerged from the discussion:
Banks are leveraging Big Data.
When you think about it, credit card issuers dont just
collect money, they also collect massive amounts of data.
They know who you are, how much money you make, and
where you spend it.
The next step is for them to provide offers that are
directly relevant to customers.
Think of the way that your grocery store uses a loyalty
program to track your spending and offer you coupons at
checkout, but then imagine that model extended across
multiple merchants.

That is what is implied by Big Data.


Card issuers will capitalize on mobile devices.
Closely tied to their push to capitalize on their data,
banks see a future where they can present these offers to
their customers in real time.
By combining location information and spending data,
banks can present customers offers that they can act on
when away from their computers.
The question then becomes, will cardholders value these
offers, or find them to be a nuisance? Banks are betting
that the more relevant they are, the less of an issue they
will be.
Banks also hope to offer cardholders not just deals and
offers, but valuable information to help them manage
their spending.
In a follow-up interview I had with Shane Holdaway,
Managing Vice President of US Cards for Capital One, he
described a future where his bank would offer information
to consumers about how they spend, and how to spend
smarter.

In his vision, your credit card becomes a budgeting tool


rather than just a method of payment and finance.

Banks will offer more products to the unbanked


and underbanked.
Do you know any adult who does not have a bank
account?
The FDIC Household Survey concluded that 8.2% of U.S.
households are unbanked (meaning they dont have a
checking or savings account), and more than 20% are
underbanked (meaning they have a checking or savings
account, but use non-bank means of credit, like payday
loans) and those numbers are growing.
Sonali Chakravorti, Vice President of Membership Benefits
for American Express, stated that in partnering with
Walmart on the BlueBird prepaid card, American Express
was looking at the next generation of customers who
dont even want a bank account.
While it remains to be seen, the next generation might
find bank accounts as relevant as land lines, compact
discs, and print publications.

Expect less junk mail, but more social media


marketing
Matthew Massaua, Senior Director US Card for
Barclaycard, made the point that credit card marketing is
changing to meet the times.
According to Massaua, social media marketing of credit
cards is growing while direct mail marketing is starting to
decline. In fact, Barclaycard has lead the way in
integrating social media with its credit card products by
introducing its innovative Ring card.
David Gold, General Manger of Partnerships for Chase
Card Services, highlighted the importance of new media
to the credit card industry.
In fact, he noted that he wakes up every day worried
about what will be written online about his products by
bloggers who focus on how many cents they can get out
of of each point.
Others on the panel also admitted following blogs and
other online outlets closely. So when you read a site like
this, you can be sure that the banks are listening, too.

The industry will undergo an evolution, not a


revolution
Change is coming, but it wont be overwhelming.
When asked about the pace of change in the industry
during the next two years, four of the five panelists
characterized the industry as going through more of an
evolution than a revolution.
Only Bob Daly, Senior Vice President of US Bank, would
hint at some major change his bank could introduce
within the next two years.
Whether he was trying to out-psych his competitors, or he
has something extraordinary up his sleeve, only time will
tell!
It was interesting, and educational, to hear credit card
industry executives share their thoughts on the future. By
understanding where credit cards are going, you wont be
surprised when you get there.

CONCLUSION
Thecreditcardissueintermsofnumberofcreditcardswitnesseda
whoppinggrowthduringthepastfiveyears.Intermsofkeyplayers
ICICIhasnotchedthelandmarkfigureof90lakhcreditcardsby2008
takingthepositionofnumberoneplayerinthesegment.Itisfurther
concludedthatthereareanumberofbankcustomerswhodonothave
anyknowledgeaboutcreditcards.Manypeoplehaveknowledgeabout
creditcards,butdonotpossesscreditcardsbecauseofthefearoffalling
intodebttrap.Highincomeearnersandhighlyeducatedclassusecredit
cardsmore,availinghighcreditlimits.
Extentofusageofcreditcardsissmalleramonghigherproportionofthe
cardholders.Customerssatisfactionisfoundtobelessbecauseofhigh
rate of interest. Customers perceived core services and facilitating
servicesathigherlevel.Cardholdersfacethemajorproblemoflackof
proper advice from banks. Credit card market is yet to realize its
potential.
Thescenarioofcreditcardsduring20092010isverysignificant.Many
cardholderssurrendertheircreditcardsandinsteadofusingcreditcards
thebankscustomerspreferdebitcards.Thedebitcardstoohelp
themavoidcarryingcashandenablewithdrawalofcashthroughATM
andtheyneednotbeafraidoffallingintodebttrapasinthecaseof
creditcards.Duetofinancialinflation,manybankshavestoppedissuing
creditcardstotheircustomers.
Aspeopleareyettorealizethecompletepotentialofcreditcard,its
marketisfallingdown.