Business planning & Restructuring

of SBAC Cards

Presented by:
Mohammad Shafiul Azam
Digital Financial Inclusion Division
Date: January 31, 2021 Sunday
 What is the Purpose?

For a good starting of Digital Retail Business

with lucrative Products and quality Services

 What we want to Do?

1. Create consistent and unique branding identity with huge market presence.
2. Identify the business model (role model) & choosing business area/segment.
3. Understanding the Competitors and their products.
4. Create competitive edge and selling features of Retail Products.
5. Emphasize on business diversification to cop-up the current market trend.
6. Improvement of quality & service in every respect.
 What can we do from SBAC Cards?

Modification & improvement of present services as well as

introduce new services considering the customers need & time demand.
 Card Division’s Service Enhancement

 Introducing full-fledged Customer service Desk.

 Introducing Sales team (100 contractual employees).
 Strengthen Back office service with expert resources.
 Signing with Priority Pass for using VIP lounge by SBAC Cardholder.
 Introducing Own processing Card Management system (CMS).
 Introducing Merchant Acquiring Business.
 Deployment of ATMs by own system setup.
 Card Division’s Service Enhancement (Cont..)

 Procurement of Card personalization setup

 PCIDSS Certification

 Introducing Business Development Desk to Improve Card selling feature by

offering loyalty program like-

a. Discount agreement with various merchants ( 68 as of date)

b. Instalment agreement with merchants ( 14 as of date)

c. Installment program for unused balance (On going)

 Business Projection:

There are three major factors for Credit Card Business which are:

1. Interest Income

2. Fee income (Waiver on 18 POS Txn.)

3. Miscellaneous Income
For boost up these three factors the pre-requisites are:

 Number of Cards

 Card Advance or portfolio

 So the picture is like this: (As per Cost benefit analysis of Debit & Credit Card).

Year Credit Card Debit Card Total Advance Net interest Fees & other GL Int. & Net profit
income income Operation Cost

2021 14926 1,05,000/- 74,63,00,000/- 12,83,67,000/- 4,83,48,000/- 12,67,06,000/- 5,00,09,000/-

2022 26340 1,43,700/- 131,70,00,000/- 22,65,24,000/- 7,57,72,000/- 19,43,28,000/- 10,79,67,000/-

2023 39216 1,91,800/- 196,08,00,000/- 33,72,57,000/- 10,77,70,000/- 26,38,60,000/- 18,11,67,000/-

Average Income from per Credit Card: (After all expenses)

 1st Year: BDT 2,200/-
 2nd Year: 3,200/-
 3rd Year: 3,800/-
 To achieve this target we need to do the following things:

1. Hire additional 22 resources (10 permanent & 12 contractual) for Card operation &
management unit.
2. Introduce Direct Sales Team (DST) for card sales. ( 50, 75 & 100 member for 1st, 2nd & 3rd
year)
3. Need Branch, Sub-branch & Employee support to achieve the estimated target.
4. Capital Investment for own processing Card Management System.
5. Capital investment to deploy 100 nos more ATMs by own management.
6. Capital investment for Merchant Acquiring or deploy Point of Sale (POS) terminals.
7. Starting Call Center operation in full swing.
 Benefits:

a. Increase Brand value to the Market which improves our selling capacity to do better business.
b. Retain Customers with service, quality & satisfactions.
c. Low & no cost fund mobilization like DBBL, Islami, Brac & City Bank.
d. Improve stable & base deposit from middle income group customer.
e. Reaching out more customers through retail & digital channels.
So we need to Focus on
Transform traditional Banking in to
Digital Financial Services
Digital Financial Inclusion Division