MOTOKAZU MATSUI and THUREIN HLA HTWAY, Nikkei staff writers
"Helped by strong consumer spending," said Ashis K Sharma, head of cards and electronic payments at the bank, "we can expect growth in our services for individual customers. We plan to issue 5,000 cards in the first year."
Earlier in May, Myanmar's central bank had removed its ban on
issuing credit cards, hoping to make shopping more convenient for
consumers, who are spending more than ever.
The ban was a reaction to a financial crisis in 2003.
The credit cards are one piece of evidence that Myanmar's financial infrastructure is improving. And for a country whose people and businesses are used to settling all transactions in cash because banks have been slow to computerize, these new pieces of plastic are being looked at as revolutionary.
"When I make a big purchase," said Kyaw Thaung, a jeweler here, "I carry bundles of bank notes, using two vehicles. I definitely want a card."
The cards are also a sign that Myanmar's economy is growing. Domestic bank deposits in March came to about 22 trillion kyat, having quadrupled during the previous three years. Kanbawza and other domestic banks are now having to compete more fiercely for this cash pile.
Kanbawza Bank will do so by dangling more than credit cards. Nyo Myint, a senior managing director of Kanbawza Bank, said the bank is determined to build the country's largest banking network, then leverage its scale.
Roughly 40% of all domestic bank accounts are already with Kanbawza Bank. The lender will seek to acquire more account holders by enhancing its branch and ATM networks.
The bank, which has roughly 350 branches in the country, up fivefold over the past three years, will keep opening three to five branches every month. In addition, the bank, which now has 500 ATMs, plans to double that number by 2016. The bank began installing ATMs in 2012.
According to Euromoney, a British financial journal, the bank's total assets in March surged 43% from the previous year to 6 trillion kyat, while profit increased 13% to 70 billion kyat.
Other banks follow
Asia Green Development Bank, meanwhile, has become the first Myanmar business to announce its commitment to list on the Yangon Stock Exchange, which is expected to open by the end of this year. The bank is now compiling investor relations information and making other efforts to lure foreign investors. It has also concluded an advisory contract with Japan's Daiwa Securities Group.
Another lender, Aya Bank, is enhancing its auto loan and car insurance services. Its chairman, Zaw Zaw, said Aya Bank is looking to provide services that other banks do not offer.
These moves are important since Myanmar's economy is reliant on domestic financial services (the country only allows domestic banks to provide growth capital to Myanmar businesses). They show how banks, rather than being a bottleneck to economic growth, actually want to spur it.
Kanbawza Bank ATMs are busy taking care of patrons.
YANGON -- In late May, Kanbawza Bank, Myanmar's leading
private lender, began issuing credit cards, initially focusing on its
affluent customers. A standard plan sets the credit limit at up to
300,000 kyat (about $241). The bank received 600 applications in the
first week."Helped by strong consumer spending," said Ashis K Sharma, head of cards and electronic payments at the bank, "we can expect growth in our services for individual customers. We plan to issue 5,000 cards in the first year."
The ban was a reaction to a financial crisis in 2003.
The credit cards are one piece of evidence that Myanmar's financial infrastructure is improving. And for a country whose people and businesses are used to settling all transactions in cash because banks have been slow to computerize, these new pieces of plastic are being looked at as revolutionary.
"When I make a big purchase," said Kyaw Thaung, a jeweler here, "I carry bundles of bank notes, using two vehicles. I definitely want a card."
The cards are also a sign that Myanmar's economy is growing. Domestic bank deposits in March came to about 22 trillion kyat, having quadrupled during the previous three years. Kanbawza and other domestic banks are now having to compete more fiercely for this cash pile.
Kanbawza Bank will do so by dangling more than credit cards. Nyo Myint, a senior managing director of Kanbawza Bank, said the bank is determined to build the country's largest banking network, then leverage its scale.
Roughly 40% of all domestic bank accounts are already with Kanbawza Bank. The lender will seek to acquire more account holders by enhancing its branch and ATM networks.
The bank, which has roughly 350 branches in the country, up fivefold over the past three years, will keep opening three to five branches every month. In addition, the bank, which now has 500 ATMs, plans to double that number by 2016. The bank began installing ATMs in 2012.
According to Euromoney, a British financial journal, the bank's total assets in March surged 43% from the previous year to 6 trillion kyat, while profit increased 13% to 70 billion kyat.
Other banks follow
Asia Green Development Bank, meanwhile, has become the first Myanmar business to announce its commitment to list on the Yangon Stock Exchange, which is expected to open by the end of this year. The bank is now compiling investor relations information and making other efforts to lure foreign investors. It has also concluded an advisory contract with Japan's Daiwa Securities Group.
Another lender, Aya Bank, is enhancing its auto loan and car insurance services. Its chairman, Zaw Zaw, said Aya Bank is looking to provide services that other banks do not offer.
These moves are important since Myanmar's economy is reliant on domestic financial services (the country only allows domestic banks to provide growth capital to Myanmar businesses). They show how banks, rather than being a bottleneck to economic growth, actually want to spur it.
Myanmar Kyat Exchange Rate
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