Banking News
- BOC eyes own brand credit cards
Date: 24-Nov-2006 Sources: (Shenzhen Daily)
BANK of China (BOC) will not opt to issue co-branded credit cards with Royal Bank of Scotland (RBS), choosing instead to use its own name in the domestic market, its chairman said Thursday.
Bank of China and Royal Bank of Scotland began working together to sell credit cards after the Scottish lender led a consortium to buy a 9.6 percent stake in the Chinese banking giant last year.
Asked if Bank of China would issue co-branded cards with Royal Bank of Scotland in the future, chairman Xiao Gang said: 'Our cooperation with RBS is not to issue co-branded credit cards.'
'We will only issue credit cards with the Bank of China brand. We will not use their name,'he said.
Royal Bank of Scotland's chief executive, Fred Goodwin, said earlier this month that his bank was working towards setting up a credit card joint venture with Bank of China.
While the two lenders were cooperating and making joint card sales, no formal joint venture could be set up until regulations permitted such a move, Goodwin said.
In terms of branding, either of credit cards or wealth management, Royal Bank of Scotland was happy to take the cue of its Chinese partner and do whatever made sense in the local market, Goodwin had said.
Xiao also said that Bank of China currently had no plans to make acquisitions overseas.
His comments echoed those of executive assistant president of the bank, Zhu Min, who said in September that Bank of China would focus on its local operations.
The lender's inward focus contrasts with an overseas push by rival China Construction Bank, which is buying the Hong Kong and Macao operations of Bank of America.
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