Novelties in the area of credit cards

1
Novelties in the area of credit cards

• Press Conference
• Prague, March 15, 2007

2
Table of Contents

• Czech republics credit cards market latest
  developments
• Reasons for using credit cards
• Trends in the area of credit cards
• Citibank and credit cards market in the CR
• Developments in Citibank credit cards
• Citibanks position in the market
• Novelties in the area of credit cards
• Credit card affordable to anyone
• Credit card accessible anywhere
• Citibank GOLD credit card new appearance

3
Developments in the credit cards market in the CR

• Rizwan Qazi, Director, Citibank a.s. Credit Cards.

4
Credit cards development in the CR
Zdroj Statistiky SBK

• During the last few years, credit cards have
  become the most dynamic sector in payment cards.
• The aggregate number of credit cards issued grew
  56 y/y (MasterCard data)
• The number of credit cards issued by banks grew
  44 y/y (SBK data)
• In numbers, credit cards are still lagging behind
  debit cards only 10 of all the cards that are
  in circulation are credit cards.
• Rapidly growing demand for credit cards reflects
  a growing disposable income of Czech consumers.

5
Situation in the credit cards market in the CR
reasons for using credit cards

• Czech credit products market was the subject of
  a recent survey carried out by MasterCard.
• The survey was namely focused on the perception
  and usage of credit cards as one of the credit
  products.

Most frequently cited reasons for ones getting a
credit card
The MasterCard survey was carried in November of
2006. In total, 847 males and females
participated in the 11 ratio, age group fm 25
to 55.
6
Credit card security and financial freedom

• The MasterCard survey findings identify credit
  cards as a preferred tool for financing needs.
• 62 of the credit cards customers use their cards
  actively.
• Czechs are predominantly using their credit card
  for purchasing electronics (51 ), groceries and
  consumer goods (37 ), furniture and household
  equipment (23 ) and clothing (22 ).
• 86 of the customers surveyed find security and
  financial freedom as main advantages of credit
  cards.

• Credit cards flexibility, security and
  possibility to use it anytime and anywhere as
  spontaneously stated by 56 of the respondents.
  Among very often mentioned positives related to
  credit cards also was the option to use the
  no-interest period.

7
Bright future for the Czech credit cards market

• It is estimated that, during the 2006-2010
  period, the number of credit cards in circulation
  will more then double.
• As the debit cards market is maturing, massive
  developments in the credit cards market will
  create new opportunities for further growth in
  this area.
• Credit cards in the CR will become a tool for
  day-to-day payments, which represents a shift
  from an earlier emphasis that was put on more
  extensive, more controlled models of spending.
• Banks will introduce additional users benefits
  as a means to win over more customers.
• Card issuers will enhance their product offering
  with co-branded cards, with the aim to offer
  their clients higher value added and more
  benefits.
• Banks will enhance their distribution channels to
  include new and attractive ways of sale.

8
Citibank and the credit cards market in the CR

• Rizwan Qazi, Director, Citibank a.s. Credit Cards

9
Citibanks standing in the Czech credit cards
market

• Leader in co-branded cards
• CSA, Shell, O2
• Citibank Co-branded credit cards have received 3
  awards from the beginning of 2007
• Citi CSA credit card Best Novelty of 2006
  (awarded by MasterCard)
• Shell MasterCard from Citibank a.s. Best
  co-branded card from the point of view of
  clients benefits (awarded by . MasterCard)
• Shell MasterCard from Citibank a.s. Best
  Financial Product of 2006 (award from the
  Computer Press publishing house)
• Market innovator
• Unique credit cards pricing program - Free for
  the entire life
• Unique benefits and discounts for GOLD cards
  holders
• Unique supplementary services (Credit on
  Phone, Installment Purchase)

10
Citibank Products Services where clients
preferences are no.1 priority

• Financial Security
• Differentiated level of security available in the
  market
• Cardholders photo and signature imprinted on the
  cards front side
• Regular monitoring of the transactions made
• Immediate assumption of liability by the Bank
  from the moment when loss/theft report is lodged
  
• Fee-free stoplisting and issue of replacement
  card upon loss/theft
• Access to online information about your account
  only with a Hard token
• No fee for blocking of the account, if
  lost/stolen
• Optional Fraud Insurance for protection against
  unauthorized activity on the card

• Best Value for the Customers
• No-interest period of up to 55 days
• No need to open ones C/A with Citibank
• Wide range of optional insurances available
• Credit Shield
• Hospitalization insurance
• Fraud insurance
• Travel insurance
• Up to 3 supplementary cards for the cardholders
  loved ones
• 24-hour customer service via CitiPhone
• Interest rate from as low as 9.9 p.a.
• Instalment Plans available over the phone for
  short and long term financing needs

11
Citibank and the credit cards market in the CR
Citibank získává za své kreditní karty 3 ocenení
Nejlepí novinka roku 2006, Karta s nejvetím
prínosem pro klienta a Financní produkt 2006
Citibank uvádí na trh kartu s Ceskými aeroliniemi
Citi CSA kreditní karta
Citibank jako první banka v CR predstavila
unikátní doplnkovou slubu Hotovost na zavolanou
Citibank uvádí na trh kartu se Shellem Shell
MasterCard od Citibank
Citibank jako první zavádí monost získat
kreditní kartu pres Internet
Citibank uvádí na trh kartu s Eurotelem (O2)
Citi CSA kreditní karta
Citibank zavádí unikátní cenový program kreditní
karta zdarma na celý ivot

• Citibank has grown faster than the market. While,
  year-on-year, the number of bank cards issued
  grew by 44, Citibank increased the number of
  credit cards issued twice as much (90).

12
Novelties in Citibank credit cards

• Ondrej Moravec, Head, Citibank Credit Cards
  Product Department.

13
Credit cards made affordable for anyone

• Citibank Classic credit card the only card in
  the market that is genuinely free
• Effective April 16th, Citibank waives the
  precondition for an annual spend of at least CZK
  36,000 to qualify for no annual fee on the card.
  Classic Card will have NO ANNUAL FEE.

14
Credit card available anywhere
In 2006 Citibank enhanced markedly its credit
cards selling network. Today, Credit Cards can
be applied for at

• 10 sale stands located at most important shopping
  malls across the CR
• 21 gas filling stations (Shell MasterCard from
  Citibank a.s.)
• 4 sale kiosks place at the Prague airport (Citi
  CSA credit card)
• Through network of 45 sales agents that visit
  companies in CR
• Through an extensive network of over 100 external
  sales agents
• 8 Citibank branches
• Via the phone
• Via the Internet
• The sales network consist of more than 900
  external sales agents.

When applying for Credit Card it will suffice to
fill-out the application and submit a copy of a
personal ID document. Subesquently the credit
card is mailed to the applicant to his home
address.
15
Citibank GOLD credit card

• Citibank accommodates its clients requirements,
  thus, effective April, 2007, new terms for
  Citibank GOLD credit cards will apply
• Lowered Interest rate
• Fraud Insurance Free of charge
• Enhances value proposition with the Privilege
  Guide
• Citibank GOLD credit cards holders will enjoy the
  following benefits
• Interest rate from 9.9 p.a. to 22,8 p.a. (26,4
  p.a. before)
• Free fraud insurance that covers risks associated
  with unauthorized card transactions upon the
  credit cards loss/theft up to CZK 50,000 if the
  same occurred within 72 hours, at the maximum,
  from the time when stop-listing request is
  received
• Significant discounts (up to 20) at partners of
  the Privilege Guide Program for discriminating
  clients (more than 60 prestigious partners from
  the field of fashion, gastronomy, luxury
  accommodation, entertainment and lifestyle)
• Option to get up to twice as high discount at
  Partner of the Month (each month, for the
  entire year, special campaigns will be run at
  selected partners of the Privilege Guide Program
  in the form of significantly higher discounts
  compared to standards offerings)
• In March, the Partner of the Month will be the
  Beltissimo stores - 11 discount on each purchase
  plus an extra gift.
• In April, the Partner of the Month will be Escada
  stores - 14 discount on any merchandise.

16
Another unique advantages of Citibank Gold Credit
Cards

• A high credit limit up to Kc 600 000
• No-interest period up to 55 days
• Worldwide usage
• Unique security features system available on the
  market
• the holders photo and signatures imprinted on
  the cards front side
• regular monitoring of all card-made transactions
• Immediate assumption of liability by the Bank
  from the moment when loss/theft report is lodged
• fee-free stoplisting and issue of replacement
  card upon theft/loss
• Possibility to create own PIN code for cash
  withdrawals
• Fee-free stoplisting and issue of replacement
  card upon theft/loss
• Widest range of optional insurance coverage
• life insurance
• hospitalization insurance
• insurance against the cards fraudulent misuse
• travel insurance
• Truly unique supplementary services
• Cash on Phone
• Instalment Purchase
• Up to three supplementary cards that are provided
  to the core card free of charge

17
GOLD credit cards - comparison