Edcon, Standard Bank To Offer Fee-Free Credit Card -
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Published on: 8/22/2005
Last Visited: 8/23/2005
Barry Fergus, a divisional managing director of credit cards at Standard Bank, said the Edcon customer base is extremely attractive to Standard Bank.
"We will be able to apply our world-class value-management model, which looks beyond just risk minimisation to focus more broadly on achieving a balance between short-term returns and long term value.
"Our risk and reward techniques provide exciting new opportunities through this new credit portfolio," Fergus said.
Prior to joining Standard Bank, Fergus was MD of Barclaycard International, running credit-card businesses in more than 60 countries.Standard Bank recently ended its partnership with British banking group Barclays aimed at providing Barclaycards to its South African client base, following Barclay's acquisition of a majority stake in rival banking group Absa.
"We are looking forward to working with MasterCard to allow more South Africans the convenience of using their new card at any store or business displaying the MasterCard logo, currently 23-million points of representation worldwide," Fergus said.
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"These cards provide a unique value proposition for all Edcon customers, but we anticipate that the fee-free element will have special appeal to lower- and middle-income customers," Fergus said.
The Edcon credit cards will have no annual fees, up to 55 days' interest-free credit on balances paid in full, no fees on administration support such as access to internet banking or statement copies, and no lost-card replacement fees.
"The only fee that will apply will be for customers exceeding their pre-agreed credit limit.We do not believe good account holders should subsidise bad customers," explained Fergus.