Primary Marketing Topic: Brand Management

BPI Card’s Express Start Program

Express Start was a promotional campaign launched by BPI Card Corporation (BCC) in the first
quarter of the year 2000 to encourage credit card membership, among the existing clients of the bank as
well as credit card applicants who failed to meet the bank’s stringent credit standards. By requiring the
maintenance of a deposit account, Express Start takes away any credit risk. By year-end, BCC had
obtained 4,900 cardholders through the promotional campaign. BCC is now faced with the question of
whether to continue with the promotional campaign indefinitely or transform it into a separate product,
comprised of a credit card and a deposit account.

Author: Maria Teresa J. Encarnacion

Discipline: Marketing
industry: Credit card
issues: Services marketing mix, promotions, pricing, targeting
Setting: Philippines, 1998
Level of Difficulty: Undergraduate/MBA
Case Number: 4-2001-01
Teaching Note: 4-2001-001T

*Prepared under the supervision of Dr. Erlinda S. Echanis, as a basis for class discussion. The case is not
designed to illustrate effective or ineffective handling of managerial situations. Certain names have been
changed. The Graduate Program Trust Fund supported the writing of this case study.

In December 2000, the Branch Sales Unit of BPI Card met to discuss the performance of Express
Start, which was launched in the first quarter of the year. Express Start was initially a promotional
campaign to encourage credit card membership among the existing clients of the bank. Present
depositors are enticed to get a card without the hassle of an application. Their deposits could serve two
purposes: to earn interest and to serve as collateral for their credit card. Express Start converts the
“clean loan” offered to regular credit card holders into a “secured loan” by requiring the maintenance of
a deposit with the parent company, the Bank of the Philippine Islands (BPI), or its subsidiary BPI Family
Bank. The deposit must be at least P10,000 with a deed of assignment in favor of BPI Card.

Soon the Branch Sales Unit saw the potential market among the applicants who failed to meet
the bank’s stringent credit standards. They saw how the deposit requirement could take away the risk
that normally made these applicants unacceptable. Thus, with Express Start, applicants who did not
meet the application criteria for a credit card still have a chance to get a BPI credit card. Express Start
thus expanded its market to include rejected applicants.
“How many cardholders have subscribed so far through Express Start?” asked Clarissa Hilario,
Vice President for Marketing and Sales.
“As of this month, some 4,900 cardholders nationwide have subscribed under this plan,”
answered Robert Santos, Assistant Manager.
 “A problem I see though is the inability of some of our clients to maintain their deposits,” Robert
told the team. Inability to maintain the required deposit meant forfeiture of the card. In its first year,
five percent of Express Start’s cardholders met this fate.
“Since our target market is the low C socio-economic class, I won't be surprised if the amount of
purchases charged is not representative of our average cardholder billings,” added Robert. BPI
cardholders have an average annual billing of P35,000.
The team agreed that despite these setbacks, Express Start had been successful in its mission,
having attracted a significant number of cardholders by year-end.
“Now the question is whether we should continue with this promotional campaign indefinitely
or set a definite period for it,” Clarissa told the team.
The team proposed that Express Start should probably be a permanent marketing fixture. It had
so far accomplished what was expected of it. Its target market had been responsive and they believed it
still had great potential. They felt it should be retained and allowed to service the growing clientele.
“I think we should evaluate this more carefully,” Clarissa told the group. “I’d like you to look into
the possibility of carrying Express Start as an individual product, distinct from our credit cards. Isn’t that
what you are proposing?”
When Express Start was conceived, it was just one of BPI Card’s many sales promotions for its
credit cards. With the team’s proposal, Clarissa felt it was now necessary to regard Express Start as a
distinct product, one that comprised a credit card and deposit account at the same time, one that
targeted a separate market, and one that required a unique marketing plan. Many questions ran
through her mind. Was it wise to spin-off Express Start as a by-product of the main product, the credit
card? Was it wise to carry a unique product specifically for this defined market? Should they market this
by-product actively? If so, how?

Robert Santos and the rest of the Branch Sales Unit knew they had a heavy task ahead.

The Philippine Credit Card Industry

Although credit card usage in the Philippines became widespread only in the 1990s, the business
may be traced back to 1957 when the first credit card company in the country, Commercial Credit
Corporation, was established. Two years later, Diners Club International entered the scene when
Industrial Finance Corporation acquired its franchise. Diners Club International would later be
transferred to Security Bank in 1966.
Bank-issued cards were introduced by Pacific Banking Corporation in 1971 with the Pacificard. In
the following decade, Equitable Bank would collaborate with VISA (1978), American Express would
establish itself in the country (1980), and PCI Bank would introduce Bankcard (1985). All this time, credit
cards targeted mainly classes A and B, those that supposedly had the wealth to indulge in “the finer
things in life.”
The elitist focus would continue for the rest of the 1980s up to the early 1990s with more
players entering the market. Equitable Bank teamed up with MasterCard in 1985; Metrobank’s Unicard,
BPI Express Card, and Far East Card were introduced in 1986; RCBC card in 1987; Hong Kong Bank's Visa
and MasterCard in 1989. The industry-wide focus on the top social classes was a low-risk approach to
the business. This also meant limited growth.
A turning point for the industry was the entry of Citibank with MasterCard in 1990. The bank,
known for its innovative strategies and products, pioneered a mass-based subscriber recruitment.
Seeing the massive potential in the lower income bracket that comprised the greater part of the
population, the bank opened the service aggressively to this class. It waived the usual requirements such
as bank deposits and/or guarantors, requiring only a completed application form and an income tax
return, a Bangko Sentral ng Pilipinas requirement. By 1995 Citibank dramatically closed the gap with the
industry's strongest player, Equitable Bank. It overtook most of its competitors in terms of market share
and revenues, gaining more than 600,000 cardholders. It was clear that Citibank had a winning strategy.
A lot had happened in that short period. With a much-enlarged market for credit cards captured
mostly by Equitable Bank and Citibank, existing players and new competitors embarked on a mission to
claim their part of the pie. Card companies previously devoted to the wealthy began to actively market
their products to more income and age brackets. What was for a long time a cash society began to be
more receptive to credit card transactions. Merchants had always preferred cash transactions,
discouraging credit card use by passing on to cardholders any discount fees charged by acquirers and/or
issuers. However, with a growing cardholder base and a more vigilant approach by issuers towards
establishments that passed on the fees to clients, merchants learned to be credit-friendly. To this day,
there are still instances of the old practice although they have considerably lessened.
More companies entered the industry: Solidbank (1996), Standard Chartered and MBf Card
(1997), Asian Bank and AIG Card (1998), Union Bank and United Oversees Bank. Backed by technology
and electronic processing, the industry grew dramatically and rapidly. According to the Credit Card
Association of the Philippines, the cardholder base had reached 3.12 million with P100 billion worth of
billings by the end of year 2000.
In terms of current market share, Equitable Bank tops the industry with 750,000 card members.
Citibank comes close with 700,000 card members, while BPI and Bankcard trail with 330,000 and
200,000 card members, respectively.

The Credit Card Business

The Players

There are basically four players in a credit card transaction: the cardholder, the merchant, the
bank that issued the credit card and the bank that acquires charges from the merchants. See Exhibit 1
for an illustration of the transactions flow.
The cardholder purchases products from a merchant using his credit card. The merchant
presents the charge slip to the acquiring bank and receives the amount of the purchase less a discount
fee. The acquiring bank, which is also called the acquirer, then presents the charge slip to the bank that
issued the credit card and receives the amount of the purchase less a fixed interchange fee (the
interchange fee is of course less than the discount fee earlier mentioned). The issuing bank, which is also
called the issuer, then bills the cardholder for the full amount of the purchase. The cardholder has the
option of paying the issuing bank the entire purchase amount or at least the minimum amount due with
the balance and interest paid over time. The same bank may act as both acquirer and issuer.

When an international credit card such as Visa or MasterCard is in the picture, these
international companies charge fixed processing fees to the acquirers and issuers for the use of their
electronic systems.

The Product

The credit card is a loan to the cardholder. It represents a credit line with the issuer up to the
amount of the credit limit, which is determined by the bank for each cardholder. The main benefit to the
cardholder is his ability to delay actual cash outlay. Of course, there are other benefits, such as
convenience and security as it frees the consumer from the need to carry large amounts of money.
A credit card may be used as a charge card and settled in full every month, or as a loan. A credit
card offers revolving credit that allows the cardholder to pay part of the purchase amount on the due
date with the balance and interest paid over time. If the full amount is not paid on the due date, credit
cards charge an interest rate of, say, 3.25 percent on the average daily balance.
If the account is not settled on the due date, whether in full or in part, a penalty is added on top
of the interest.
As credit card companies struggle for market share today, they seek ways to differentiate their
cards by adding new services to attract the different segments of the market, as well as to encourage its
frequent use. The credit card has therefore become a highly augmented product. It is no longer a simple
loan as new features and benefits are continuously added to the core product.
Some of the more common added benefits and features of credit cards are the following:

1) Worldwide acceptance. Issuers realize the need for international acceptance. Thus, many
credit cards available in the local market, such as Visa and MasterCard, have international acceptance.
2) Cash advance facility. Cardholders may avail of cash advances over the counter or through
automatic teller machines up to a certain percentage of their credit limit. There is normally a service fee,
which is a percentage of the cash advance amount, as well as an interest charge accruing from the date
the cash advance is taken.
3) Customer service. Issuers provide a hotline to answer client inquiries. Some companies
provide 24-hour phone assistance, while others are limited to office hours.
4) Travel insurance coverage. Cardholders who purchase their travel tickets by credit card avail
of free travel insurance coverage. Most card companies provide this service, but they differ in the
amount of coverage.
5) Travel inconvenience protection. This provides travelers some monetary compensation for
travel inconveniences such as delayed or lost luggage, and missed, delayed or cancelled flights. Most
card companies provide this service, but differ in the amount of coverage.
6) Purchase protection. This provides the cardholder with some monetary compensation for
loss, theft or damage to valuable purchases for up to 30 days from purchase. Some credit cards may
charge extra for this feature.
7) Lost card protection. A card that is reported lost or stolen is safeguarded against any
fraudulent use of the card from the time of report. Most credit cards provide this feature for free, while
a few charge a fee for it.
 8) Credit Guard. For a fee, cardholders may insure their outstanding account balance. In case of
temporary disability of the cardholder, the bank covers the minimum amount due on the account for up
to six months. In case of permanent disability or death, the bank covers the whole balance. Few cards
offer this feature.
9) Installment feature. Many card companies provide monthly installment plans for appliances,
electronics equipment, and furniture for up to 24 months. Most credit cards offer this feature.
10) Loyalty Program. Some credit cards come with a rewards system. Cardholders earn one
point for every so many pesos of paid bills. The points may be accumulated to redeem a reward such as
products, cash rebates, and/or annual fee waivers.

See Exhibit 2 for a comparison of some credit cards along these features.

The Pricing

Credit card companies typically earn from a one-time joining fee, an annual membership fee,
finance charges when the outstanding balance is not paid in full, late payment charges, and
discount/interchange fees.
Finance charges are imposed when the outstanding balance is not paid in full on the due date. A
finance charge at a pre-determined interest rate is typically charged on the outstanding balance of the
account on the following month's due date (this includes new purchases made during the following
month). There is some variation among credit card companies with respect to the computed finance
charge: some use average daily balance, others simply the outstanding balance, and still others just the
balance unpaid that previous month.
When the account is not settled at all on the due date, a late penalty change is imposed on top
of the finance charge.
The credit card issuer also earns from the interchange fee it charges the acquirer, or if it acts as
both acquirer and issuer, the discount fee it charges the merchant when it settles the cardholder's
purchases.
Not only has tough competition led to an augmented product, but to highly competitive pricing
as well. See Exhibit 3 for a comparison of the fees and charges of selected credit cards.

The Placement and Distribution

Credit card companies reach out to potential and existing clients through the banks’ branches
and other distribution channels, such as:

1) Take-One Boxes. Brochures with application forms are placed on cashier counters of
commercial establishments for consumers to pick up. To entice them to apply, these often come with a
free promotional item upon approval of the application.
2) Direct Mail. Credit card companies may purchase the mailing list of utility companies, real
estate companies, car manufacturers, etc. The idea is that these mailing lists represent segments of the
population that the credit card company may be targeting.
3) Direct Sales. The credit card company may contract a direct sales agency to sell for them.
Since the loyalty of these agents is not assured (they may be selling more than one brand of credit card,
for example), the card companies often have to offer attractive commissions to them.
4) Member-get-member. Cardholders are asked to refer their family or friends. They are
rewarded for every successful referral.

5) Staff-get-member. Employees are asked to refer their family or friends. They are rewarded
for every successful referral.
6) Telemarketing. This often supplements the direct mail effort as further encouragement may
be required to entice the target client to apply.
7) Advertising. Print and media ads complement other marketing efforts.

Other traditional and non-traditional distribution channels may be used by the issuer.

BPI Card Corporation

In 1986, BPI Express Card Corporation (BECC) registered with the Securities and Exchange
Commission as a wholly owned subsidiary of the Bank of the Philippine Islands (BPI). True to its parent's
virtue of leadership and stability, BECC approached the business with conservatism. It rode on the tide
of the industry’s elitist positioning, while clinging to stringent credit criteria. It aimed to foster a
premium brand image for BPI Express Card, which it launched in 1986. Marketing campaigns were highly
focused, with limited mass advertising.
In 1996, the merger of BPI and Citytrust meant the merger of BECC and the Citytrust Card
Center. The following year, BPI MasterCard was launched. The new company now claimed to combine
BPI’s leadership and stability with Citytrust’s innovative expertise and dynamism. The merger was timely
as it forced the now stronger company to face the changes taking place in the industry at that time. The
company would later change its name to BPI Card Finance Corporation, and then finally to BPI Card.
The renewed company felt it necessary to reacquaint itself with the market. Hiring Clarissa
Hilario, an accomplished marketing specialist from a well-known multinational manufacturing firm, to
head its Marketing and Sales Department, BPI Card undertook an extensive study of the market using
surveys and focus group discussions. The market research revealed a snobbish perception of the
company, an image that turned off the broadened and enlightened market.
Management decided that a radical change in marketing strategy was in order. They realized
that this would require an overhaul of the organization's culture. Not only was the quality of the product
important but the customer service attached to it as well. The relationship between cardholder and
company was crucial. The company’s employees, being the brokers in this relationship, must cooperate
and participate.
Strengthening the links with the customer would hopefully make for a satisfied and loyal
clientele. By maximizing all points of contact with clients—such as application, bill payment and phone
inquiries—to deliver customer satisfaction, the company hoped cardholders would be encouraged to
use the card more, to be more receptive to promotional campaigns, and to refer the card company to
friends and family.
Management vowed to take a proactive approach to the business.

BPI credit cards

BPI Card now aims to attract income classes A to C countrywide. Exhibit 4 defines these income
classes.
BPI Card acts as an acquirer and issuer. The discount fee it charges merchants is a percentage of
the billing and depends on the industry of thy merchant. Exhibit 5 shows the typical range of discount
fees charged to specific industries. Reimbursement of the billings to the merchant takes a maximum of
three days for deposit to a BPI account, while check claims take 5 to 7 working days.
Cardholders use their cards for a variety of purposes. The breakdown of charges by industry on
average is shown in Exhibit 6.
BPI Card incurs an initial cost of P700 for each new BPI MasterCard cardholder and P650 for BPI
Express Card. This covers the cost of the plastic card and the initial processing involved. The average
annual cost for servicing the account is P200. The plastic card itself is replaced every two years.
Cardholders receive their monthly statements of account through BPI CARD’s courier service.
They have the option to pay through telephone (BPI Express Phone), the Internet (Internet Express Bills),
ATM (BPI ATMs), automatic debit from their BPI account, or over the counter at any BPI or BPI Family
Bank branch.

Marketing efforts

BPI Card uses traditional distribution channels to distribute its BPI MasterCard and BPI Express
Card. Take-one boxes, member-get-member, staff-get-member, and advertising play a key role in the
marketing effort. Exhibit 8 shows the content of a brochure found in take-one boxes.
To further promote its credit cards, BPI Card formulates marketing campaigns intended for
specific segments of the market. Market research surveys are conducted periodically to determine the
public’s brand awareness, sources of awareness, credit card practices, and the attributes of a credit card
and of a promotional campaign that are considered important. Demographics and market share are also
monitored. Exhibits 9-13 show data on the population, age structure, education, occupation, and
income.
The Branch Sales Unit, tasked with promoting subscription to BPI credit cards specifically to the
Bank's existing branch clients, and the Usage Group, in charge of encouraging frequent use of the card,
are just two groups working under the Marketing and Sales Department in developing promotional
campaigns.
BPI Card is known for its creative and attractive promotional schemes. It is recognized as the
pioneer in appliance installment schemes in the country. Installment Madness allows cardholders to
purchase appliances and electronics equipment on installment up to 24 months via a separate credit line
called the Special Installment Plan (S.I.P). Cardholders use their S.I.P. line, while their regular credit line
is free for everyday expenses. This installment-financing scheme has expanded to other products such as
travel, tuition, jewelry, and dining.
Some of the recent marketing campaigns to encourage existing cardholders use their cards were
the following:

1) Travel Madness 2000 allowed the user to pay for local or international travel packages on
installment.
2) Great Dining Madness treated cardholders to discounts, special perks, and installment
financing at restaurants, bars, cafes, bistros, and amusement centers.
3) Tuition Installment Plan Plus allowed cardholders to pay for school expenses on installment.
This included tuition, uniforms, books, and school supplies.
4) Health, Beauty and Fitness Madness treated cardholders to discounts at leading hospitals
and clinics, fitness gyms and spas, and health and beauty products.
5) Balance Transfer allowed cardholders to transfer their outstanding credit balances with other
card companies to their BPI credit card’s S.1.P., and avail of S.I.P.’s lower monthly interest rate (1.81
percent).
 6) Frequent User Privileges was a program where monthly payments earned points that may be
exchanged for items.

Special offers were also given to existing clients of BPI:

1) Preferred Banking offered a free BPI Express Credit Card to those who availed of the BPI
MasterCard.
2) Application by phone. There was no need to fill out application forms; the first year annual
fee and first extension card were free.

Some recent marketing campaigns were designed to attract new cardholders:

1) Six to the Max allowed extension credit cards for all family members of current cardholders.
2) Home Cable Subscribers were offered free first year annual fees for their BPI Express Credit
Card or BPI MasterCard.

Direct mail was the main channel of distribution used by BPI Card for these promotional
campaigns. Attractive and informative flyers were sent to the target market segment, be it existing
cardholders, existing BPI depositors, or new markets. Flyers were also distributed through BPI and BPI
Family Bank’s 687 branches nationwide.

BPI Card’s Performance

All these efforts seemed to have paid off. By year 2000, BPI Card ranked number 3, behind
Equitable Bank and Citibank, in terms of card member market share, with a 10 percent share, better
than its number 4 spot prior to the radical changes that took place. In recognition of the company’s
success, the Philippine Marketing Association presented BPI Card with an Agora Award for “Marketing
Company of the Year” in 1999.
Seventy percent of BPI Card’s 330,000 cardholders are active. Today, the Classic and Gold
MasterCard lines comprise 40 percent of the cards the company issues, while BPI Express Card
comprises 60 percent. It has a cardholder retention rate of 90 percent. In other words, only 10 percent
of its card members discontinue or somehow forfeit their subscription to a BPI credit card.
BPI Card has a merchant base of 17,000 local establishments and over 17 million international
establishments.

BPI Express Start

One marketing campaign initiated by the Branch Sales Unit is Express Start. Express Start is
patterned after MasterCard’s “secured card” which has already been available internationally for about
ten years. Launched in the first quarter of year 2000 after half a year of development, Express Start was
for the most part of the year the only such program available in the local market. Metrobank introduced
the similar Metrobank Value MasterCard in late 2000.
Due to the Bank’s philosophy, BPI Card is a relatively conservative credit card company.
Compared with other issuers, the company has a lower approval rate. Applicants may be disapproved
for not meeting some application criteria or for having a bad credit record of delinquency. See Exhibit 7
for the application requirements.
The main aim of Express Start was to capture otherwise unacceptable applicants by eliminating
the need for them to meet certain income, age, and residence requirements. “No credit experience? No
documents? No problem.” was the come on line of the campaign. Simply make a deposit of at least
P10,000 and get a fully-charged BPI credit card, the flyer said.
Express Start applied to existing deposits as well. This was precisely the idea of the Branch Sales
Unit. Existing clients of the bank might be enticed to get a card without the hassle of an application.
“Make your money work double time! Enjoy earning interest on your investment, while using your
deposit as security for your card.”
Express Start claimed to put the cardholder in control of his credit limit, which was
approximately 80 percent of the deposit made. “The higher your deposit, the higher your credit limit.”
Of course, the deposit must be maintained with the Bank as long as the credit card is held. A
Deed of Assignment is signed by the cardholder, assigning to BPI Card all his rights over the deposit
account. See Exhibit 14 for a sample form of the contract. It is not normally announced, but the
cardholder may be eligible for a release from this requirement after two years if he proves to be a good
credit.
With a budget of P1.5 million, BPI Card concentrated its marketing efforts on disapproved
applicants and existing branch clients. Brochures explaining the program were mailed to them. See
Exhibit 15 for the contents of the brochure. This effort was supplemented with print advertisements.
Express Start has so far attracted mainly those from lower class C, although some A and B clients
with no proof of income also chose to obtain their credit card through Express Start. As long as
documents are in order, there is a 95 percent chance that the application under Express Start will be
approved. Non-approval is normally due to an unsettled loan obligation of the client with the Bank.
Another typical problem involves accounts on-hold that are joint accounts. The signatures of both
depositors are required on the Deed of Assignment. Sometimes only one depositor signs the Deed of
Assignment, and that is unacceptable.
There are more than 4,900 cardholders to date under the Express Start program. With an
average billing per cardholder of P35,000/year, this translates to an expected annual billing of
P171,500,000.

Study Questions

1) What forces in the environment have shaped the credit card industry’s growth and
development?
2) Do you think Express Start should be continued or phased out?
a. What do you think of the problems Robert Santos expressed?
b. Is it wise to carry a different product specifically for this defined market? If so, what
factors would justify targeting the low C class for Express Start?
c. Would promoting Express Start (credit card + deposit) as a byproduct affect the main
product (the credit card)? If so, how?
3) If you think Express Start should be a separate product, formulate a comprehensive marketing
plan for it. If not, recommend an alternative plan.
 Exhibit 1
Payment Flows in a Credit Card Transaction

Source: Citibank Credit cards, a marketing paper submitted for MS Finance 230 by Granadino, Legoh, Odulio and Bulahan, 22 June
2000.
 Exhibit 2
Product Features of Credit Cards Compared

Source: Citibank Credit Cards, a marketing paper submitted for MS Finance 230 by Granadino, Legoh, Odulio and Bulahan, 22 June 2000.
 Exhibit 3
Pricing Features of Credit Cards Compared

Source: Citibank Credit cards, a marketing paper submitted for MS Finance 230 by Granadino, Legoh, Odulio and Bulahan, 22 June 2000.
 Exhibit 4
BPI Card’s Income Classes

Income Class Monthly income range (pesos)

A 100, 000+

B 50,000-99,999

C 10, 000-49,000

Source: Interview with Arnold H. Saniano, Assisstant Manager, BPI Card.

 Exhibit 5
              Discount Fees Charged by BPI Card

Industry Discount fee

Supermarkets, groceries, drugstores, gasoline 1-2%

Retail establishments 2-5%

Service companies (utilities, insurance, hotels, etc.) 5-10%

Source: Interview with Arnold H. Saniano, Assisstant Manager, BPI Card.

 Exhibit 6
          Breakdown of Cardholder Purchases by Industry/Purpose

Industry Purchase

Supermarkets, groceries, drugstores, gasoline 55%

Retail establishments 25%

Service companies (utilities, insurance, hotels, etc.) 8%

Installment campaigns 12%

Source: Interview with Arnold H. Saniano, Assisstant Manager, BPI Card.

 Exhibit 7
     Application Requirements for a BPI Credit Card

Source: BPI credit card application form.

 Exhibit 8
            Brochure in Take-One Boxes
…continuation of Exhibit 8
…continuation of Exhibit 8
…continuation of Exhibit 8
…continuation of Exhibit 8
 Exhibit 9
  Poverty and inequality Indicators

Population in Poverty (%)

1994 1997

Total 35.5 36.8

Urban 24 21.5

Rural 47 50.7

Income ratio of highest 20% to lowest 20%

1994 1997

10.6 9

Gini coefficient*

1994 1997

0.45 0.49

*A value of zero implies equality while a value of 1 refers to perfect inequality.

Source: Key Indicators of Developing Asian and Pacific Countries 1998 and 2000, Asian
Development Bank.
 Exhibit 10
   Population by Age Group

Age Range Year Percentage of Total Pop’n

0-14 1975 43.6

1985 41
2000* 36.4

15-64 1975 53.7

1985 56.1
2000* 59.9
65+ 1975 2.7
1985 2.9
2000* 3.7

*projected figure

Source: Key Indicators of Developing Asian and Pacific Countries 1998. Asian Development Bank.
 Exhibit 11
   Education Indicators*

Adult Literacy Rate (%)

1975 1985 1996

Female 81 83 94

Male 84 84 95

Gross School Enrollment Ratio (%) **

1985 1996

Female 107 111

Male 108 113

*Refers to population of 15 years old and over.

** Refers to total enrollment, regardless of age, expressed as a percentage of the official school age
population.

Source:  Key Indicators of Developing Asian and Pacific Countries 1998. Asian Development Bank.
 Exhibit 12
Labor Force in the Philippines
(in thousands)

Source: Key Indicators of Development Asian and Pacific Countries 1998, Asian Development Bank.
 Exhibit 13
  Economically Active Population (EAP) by Gender and Industry

1975 1985 1996 1998

EAP (% of working population) Female 50 48 47.3 49

Male 79 80.3 81.6 83

EAP in Agriculture / EAP (%) Female 26.1 35 30.5 27

Male 64.5 58.3 52.8 47
EAP in Industry / EAP (%) Female 18.3 12.8 13.5 12
Male 13.9 14.5 17.1 18
EAP in Services / EAP (%)
Female 55.6 52.2 56 61
Male 21.6 27.3 30.1 35

Source: Key Indicators of Development Asian and Pacific Countries 1998 and 2000, Asian
Development Bank.
 Exhibit 14
Deed of Assignment
…continuation of Exhibit 14
 Exhibit 15
Express Start Brochure
. . . continuation of Exhibit 15
. . . continuation of Exhibit 15
References

Granadino, Legoh, Odulio and Bulahan. “Citibank Credit Cards,” a marketing paper submitted for MS
Finance 230, 22 June 2000.

“Innovation in Financial Service Marketing: BPI Card Finance Corporation,” Agora Newsletter, Philippine
Marketing Association, Inc.

Key Indicators of Developing Asian and Pacific Countries 1998, Asian Development Bank.

Lorenzo, Buenaventura and Fabella. “Credit Cards: Products & Services,” a report submitted for MS
Finance 230, November 1998.

Lorenzo, Buenaventura and Fabella. “Distribution System of Credit Card Companies,” a report
submitted for MS Finance 230, November 1998.

Arnold H. Saniano, Assistant Manager, BPI Card, interviews, December 2000- February 2001.

“3.1M in cardbase; P100B in billings,” Philippine Daily Inquirer, page F1, 29 January 2001.

Various BPI Card brochures and flyers.