Table 2.6: SeABank Visa Deferr card service fees
Unit: VND
SeABank | Techcombank | ACB | |
Fee Type | Fees | Fees | Fees |
Issuance fee | 220,000 VND | 250,000 VND | 250,000 VND |
Annual fee | 240,000 VND | 300,000 VND | |
Standard card | 300,000 VND/ Year | 300,000 VND/ Year | 300,000 VND/ Year |
Yellow card | 500,000 VND/ Year | 500,000 VND/ Year | 500,000 VND/ Year |
Cash withdrawal fee | 4% of transaction amount | 4% of transaction amount | 4% of transaction amount |
Transfer management fee exchange foreign currency | 2.75% of transaction amount | 2.75% of transaction amount | 2.75% of transaction amount |
Late payment fee | 4% of late payment amount | 4% of late payment amount | 4% of late payment amount |
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(Source: Credit card department - SeABank card center)
SeABank's fee schedule is based on the regulations of the card organization. The fee that SeABank offers is reasonable and quite similar, even cheaper than similar services at other banks. In particular, SeABank offers free card issuance for customers. Comparing SeABank's domestic debit card issuance fee with other banks, we see that SeABank's fee is reasonable, close to the current card market, and can completely compete with other banks.
In addition, when releasing a card product to the market, SeABank also carries out promotional programs and valuable gifts to increase the attractiveness and create highlights for the product such as the incentive program when opening a SeA MasterCard:
- Free accident insurance for Standard card,
- Lost and stolen luggage insurance for Gold card, receive Megastar movie tickets or supermarket vouchers worth 100,000 VND;
2.2.2.2. Typical features of Southeast Asia Commercial Joint Stock Bank Card compared to other banks
- Southeast Asia Commercial Joint Stock Bank is the first bank in Vietnam to synchronously deploy authentication according to the most modern EMV standard in issuing and paying for international Visa and MasterCard cards, using chip card technology with the highest security standards that currently in Vietnam in particular and in Asia in general, almost no bank has applied.
- One of the first banks in Vietnam to accept 06 of the world's largest international card brands including Visa, MasterCard, CUP, Amex, JCB, Diners Club at ATMs.
- In addition, SeABank is also one of the few banks in Vietnam to become an official member of both leading international card organizations Visa and MasterCard, and is also an official agent of Western Union in Vietnam.
- SeABank ATM cards can be used for transactions at ATMs and POS machines of SeABank and banks in the BanknetVN & SmartLink, VNBC card alliance nationwide.
- In addition, as an official member of the world's two largest card organizations, MasterCard and Visa Card, the EMV MasterCard Postpaid International Debit Card and SeABank MasterCard International Card can be used for transactions worldwide with full features: cash withdrawal, payment for goods and services, money transfer, balance inquiry, pin change, statement printing...
- In particular, SeABank is the first bank to successfully deploy the Autobank service in Hanoi and Ho Chi Minh City, allowing customers to fully automatically perform transactions of depositing money, withdrawing money, exchanging foreign currency into Vietnamese Dong, querying information via automatic machines, calling the 24/7 Customer Service Center and transacting online with the Bank.
2.3. CARD BUSINESS ACTIVITIES AT SOUTHEAST ASIA COMMERCIAL JOINT STOCK BANK
2.3.1. Evaluation of business performance
114667
87224
65336
70288
55188 60397
120000
100000
80000
60000
40000
20000
0
2007 2008 2009 2010 2011 2012
Figure 2.3: Growth in the number of cards issued over the years
(Source: Annual Report of Southeast Asia Commercial Joint Stock Bank)
Through the above figure, we can see that the number of cards issued tends to increase over the years, especially in 2011, the number of cards issued reached 114,667 cards, the highest in the years. In 2012, the difficult economic situation and strong competitive pressure caused the number of cards issued by Southeast Asia Commercial Joint Stock Bank to decrease to
87,224 cards, however 2012 also saw growth compared to 2007, 2008, 2009 and 2010.
Specifically, card service growth in 2012 is as follows:
76998
2508
7718
80000
70000
60000
50000
40000
30000
20000
10000
0
Master Card Visa address
Figure 2.4: Card service growth 2012
(Source: Annual Report of Southeast Asia Commercial Joint Stock Bank)
As of December 31, 2012, SeABank has issued nearly 77,000 domestic cards and nearly
10,300 international cards. Becoming a member of the two largest card organizations in the world, Master Card and Visa Card, SeABank is the first bank in Vietnam to synchronously deploy EMV authentication for international card issuance and payment, contributing to limiting risks for customers when using cards. In addition, the number of domestic SeABank cards also achieved growth with a stable card operating rate (88% of the total number of issued cards).
Since 2003, SeABank has officially issued payment cards under the S 24+ brand. The S 24+ card is a payment card, used within Vietnam based on the amount of money in the customer's account opened at SeABank. This is the only domestic card currently that integrates the following functions: Withdrawal and payment (common card features), with the savings feature in the SeA Saving card and the payment account advance feature through the S 24+ product. SeABank cards are increasingly trusted and used by customers.
Table 2.7: Number of S 24+ cards issued from 2007 to present
2007 | Year 2008 | Year 2009 | 2010 | 2011 | 2012 | |
Cumulative number of issued cards (pieces) | 40,137 | 45,232 | 50,852 | 59,451 | 62,528 | 65,472 |
Card account balance (billion VND) | 700 | 1,688 | 6,248 | 10,137 | 13,195 | 14,155 |
(Source: Southeast Asia Commercial Joint Stock Bank Card Center)
2007 was a memorable year for card development activities at SeABank. The total number of newly issued cards in 2007 was 55,188 cards, S 24+ was 40,137 cards, an increase of nearly 300% compared to 2006. With the goal of becoming a typical retail bank in Vietnam, SeABank pays special attention to the diversity and utility of products and opens up easy and convenient access channels for customers. The Government's directive on salary payment through accounts also contributed to creating a large market for SeABank. In 2008, SeABank exploited a significant market share by exploiting salary payments for ministries and sectors such as life insurance, and schools... In 2009, the total number of issued cards reached 65,336 cards, of which S 24+ cards were 50,852 cards. In 2009, the development of
The number of new S 24+ cards issued was 5,620, a 12% increase compared to 2008. By the end of 2012, the total number of S 24+ cards accumulated by SeABank had reached more than 65,000 cards.
Table 2.8: Number of SeABank visa cards issued from 2007 to present
2007 | Year 2008 | Year 2009 | 2010 | 2011 | 2012 | Plan | |
Visa card issued | 5.158 | 5,573 | 5,182 | 5,943 | 7,505 | 7,718 | 9,000 |
(Source: Southeast Asia Commercial Joint Stock Bank Card Center)
2007 was not only a memorable year for the S 24+ card but also an impressive year for the SeABank Visa card. In 2008, SeABank launched a series of promotional programs to encourage and create habits for customers to use this modern product such as free issuance. In 2008, the customer care cooperation program with Nokia and Mobifone and especially on the occasion of the 14th anniversary of the bank's establishment, SeABank waived the first year's annual fee for cardholders to attract more customers to issue and use SeABank Visa cards, bringing the total number of SeABank Visa cards issued throughout the system by the end of 2008 to 5,573 cards. And in 2009, the number of SeABank visa cards issued was 5,182 cards, lower than in 2008. The reason was due to fierce competition from card promotion activities and the emergence of card products from domestic and foreign banks. For customers to use payment cards regularly, there are two decisive factors: the card acceptance network and the added value when paying by card. In 2010, SeABank made a large investment in the ATM network and signed new contracts with more than 800 card acceptance units, linked with restaurants, hotels, supermarkets, spas, shopping centers... to reduce prices and give gifts to customers when using SeABank visa cards for payment. As a result, in 2010, the total number of newly issued SeABank visa cards was 761 cards, bringing the total number of SeABank visa cards issued cumulatively by the end of 2010 to 5,943 cards. Continuing the promotional programs that are continuously applied to SeABank visa cardholders, other utilities such as: issuing, processing card checks quickly, easily transferring idle money from payment accounts to savings accounts to enjoy high interest rates, transferring money within the system... are increasingly gaining the trust of customers who trust and use the card. In 2012, the entire system
SeABank issued 7,718 cards. The number of cards has increased continuously over the years, contributing significantly to the bank's income.
The reason is that SeABank cards are increasingly improving in terms of process, features and affirming the SeABank card brand in the market. With the S 24+ card, in addition to the traditional payment function, customers can also make savings with the SeASaving support product (transferring idle money from payment accounts to savings accounts to enjoy higher interest rates). Developing SeASaving in addition to the S 24+ product is a great effort of SeABank in meeting the diverse needs of customers, as well as diversifying the bank's card products. From there, the number of cards issued increases significantly, the bank will earn more profits from issuance costs, verification fees, PIN or card re-issuance fees.
In addition, SeABank always focuses on developing payment networks and cooperation to create strengths. If in 2005 SeABank was the first bank to successfully connect its card system with Vietcombank, in 2008 SeABank was also the first bank to successfully connect its cards with the two largest card alliances, Smarlink and Banknet, and with strategic partner HSBC. Thanks to that, cardholders issued by SeABank can use the card on a system of more than 11,000 ATMs and 50,000 card acceptance units (POS) nationwide, in which SeABank has also invested in a large number of its own ATMs and POS to serve customers.
Table 2.9: Number of ATMs and POS machines of SeABank from 2009-2012
Unit: Piece
Year 2009 | 2010 | 2011 | 2012 | |
ATM | 29 | 135 | 256 | 298 |
POS | 11 | 298 | 420 | 433 |
(Source: Southeast Asia Commercial Joint Stock Bank Card Center)
According to the table above, we can see that the card payment network of Southeast Asia Commercial Bank has been growing strongly from 2009 to 2012. This growth is reflected in both the number of ATMs in the entire system and the number of POS. If in 2009 there were only 11 ATMs with the number of POS being 298, by 2012 there were
There are 298 ATMs with 433 POS. This impressive growth rate demonstrates SeABank's commitment to creating more convenience for customers using its card services.
Table 2.10: Number of ATMs in the system and actual number of cards issued compared to the 2012 plan
Target
Perform | Plan | % of implementation compared to plan | |
Number of ATMs in the system | 298 | 298 | 100% |
Number of cards issued | 87,224 | 85,000 | 102.62% |
(Source: Southeast Asia Commercial Joint Stock Bank Card Center)
Another special point in the development of card services at Southeast Asia Commercial Joint Stock Bank is that the targets for the number of ATMs and the number of cards issued in 2012 exceeded the targets set out in the plan. This shows the strong development of card services at the Bank and also shows the attractiveness and superiority of Southeast Asia Commercial Joint Stock Bank's card products compared to other banks.
Unit: billion VND
572
514
436
368
272
600
500
400
300
200
100
0
2008 2009 2010 2011 2012
Figure 2.5: SeABank card payment turnover via POS
(Source: SeABank Card Center)
Payment turnover has continuously increased over the years. In 2012, SeABank card payment turnover via POS increased more than 2 times compared to 2008, reaching 572 billion VND.
In addition, with the right investment in card products, SeABank is increasingly attracting a large number of customers to use and promote the Bank's products. This is reflected in the increasing balance on card accounts, accounting for an average of 5-7% of SeABank's total mobilization of residents. This is a cheap source of capital mobilization for the Bank.
Unit: billion VND
80000
70000
Term
No term
60000
50000
40000
30000
20000
10000
0
2007 2008 2009 2010 2011 2012
Figure 2.6: Mobilizing people at SeABank
(Source: SeABank Personal Finance and Services Block)
In addition, card business also brings income to the bank from related fees, including card issuance fees that SeABank regulates and collects from customers.