Bank of Communications yesterday launched its platinum credit card in Shanghai, becoming the latest domestic lender to target higher-end customers amid intensified market competition.
The card, with a maximum credit limit of 50,000 yuan (US$7,200), is designed to attract business elites who prefer to seek specially customized services, and is the first of its kind in China, said Xu Han, deputy chief executive offer of Pacific Credit Card Center.
In addition to services such as road rescue assistance covered by the 1000-yuan basic annual fees, card holders can also choose to have three other benefits such as medical and health care services if they pay an extra 800 yuan annually for each item.
"The launch of the platinum card is fully in line with our business strategy focusing on the development of financial management," Xu said.
The new card is also backed by HSBC Group Holdings, which has just over 19 percent of Bank of Communications as the second-biggest shareholder.
Market analysts said the issue of the new card stemmed from heated market competition in lucrative retail banking.
Bank of Communications had issued more than 6 million credit cards by the end of first quarter this year. It entered the business in 2005 and is now ranked fifth-largest in China.
The bank's credit card business has increased by 150 to 200 percent over the past few years, and is likely to rise further, Xu told Shanghai Daily.