Visa for the even millionaires / Private banking
The magnet bank card has become a usual method of payment. The money is stored securely on the bank account, and they can be easily used to pay at the shop or withdrawn as a cash from the ATM.
Today there are some 1,4 mln. ATMs in the world. The bank card, which in itself is a piece of thermally and mechanically secured plastic with the dimensions of 85,6õ53,9õ0,76 mm does not only have a number of advantages for use, but is also a symbol of prestige. This is particularly true for the credit cards of the VIP-customers. "Visa Infinite" card is the millionaires’ means of payment.
For the end of 2004 only 78 000 of such cards were issued in the world. But the aggregate turnover amounted to $711 mln. for half a year. The country, where the largest part of the happy VIP-card owners live, is France with some 18 000 of cardholders. In the huge region, which unites the Eastern Europe, the Middle East and Africa (93 countries), the cards are offered only in 3 countries: Kuwait (280 cardholders), Russia (some dozens of cardholders) and now they are offered in Ukraine. "UkrSibbank" was the first in Ukraine to receive the permit of "Visa International" payment system for the VIP-cards emission. “Privatbank” plans to join the pioneer. Some customers are already on the list to receive the prestigeous card, but their names are so far are kept secret. Many of them have already been opening the bank accounts abroad, but the Western bank managers were not smart enough to comprehend the peculiarities of the Ukrainian mentality.
"Visa Infinite" card offers customer the top level of services among all the existing cards. It is an indicator of well-being and recognizability of its owner, positioning him or her as a member of the very narrow elite circle of rich and famous. The card allows to get a number of unique services, preferences and discounts. The huge network of shops, restaurants, car rentals, yacht rentals, special offers and discounts at the top-rank hotels and a lot more are to the service of the cardholder. The customers may receive the temporary card or cash in the amount of $5000 for “minor expenditures” in extraordinary circumstances if the card is lost abroad just within 24 hours. Every holder of "Visa Infinite" card receives accident insurance when going abroad in the amount of $1 mln., as well as fast and quality medical care, including injuries as a result of dangerous sport activities, for instance, mountain skiing or diving. The payment card is widely accepted in the retail outlets and the banks all over the world, the highest withdrawal and purchase limits ($20000 and more). The holder of Visa Infinite card may use the service of concierge in any country of the world. This includes, for instance, rent of the conference hall for business meeting, order a taxi, book the theatre, cinema or airline tickets, reserve a table at the restaurant, get the complete information about the prices for any services and even order the delivery of presents and documents.
The customers do not have to worry about their accounts. The card has an increased protection level hologram, and the account is constantly being monitored by the bank; in case certain problems arise, the customer is immediately contacted.
The only thing is that the service cost of the card is rather high, for instance, in "UkrSibbank" it amounts to UAH 2500 annually. But prestige costs the money, and the bank’s management views it rather optimistically, stating that up to 200 persons will become the holders of the card within this year.
In the judgement of Roman Chumak, Deputy Chairman of Board of JSIB "UkrSibbank", the latest trends of the banking market development in Ukraine envision functioning at the major banks of such a subunit, as Private Banking. In the large American and European banks such subunits have already been functioning for many years, which manage the entire private capitals. According to Merrill Lynch estimates, the total volume of such capitals amounted to $71,3 trillion in 2003. So far Ukraine is not a significant part of the global market, but the number of well-off people here apparently will increase. All in all there are 8 million of millionaires in the world, some minor part of them live in Ukraine as well. Mr. Chumak thinks, that "Visa Infinite" card will be a real gem of the Private Banking subunit. The customers are offered the services of personal financial adviser, who handles the work on those issues, which concern the financial well-being of the customer and his family. For the customer’s comfort and for security reasons each customer will be provided 2 VIP-managers to work with. Altogether presently there are 5 managers in the subunit, which are properly trained and trusted.
EXAMINATION
Sergej Ravniago, director of the Ukrainian Visa Office, thinks, that the the advent of such an elite product, as Visa Infinite is an important event for Ukraine. In his mind, if one draws an analogy with the cars, S-class "Mercedes" may be considered the approximate equivalent of Visa Platinum, ànd Visa Infinite may be compared to such a luxurious car, as "Ìàibach" or "Ferrari". Despite the fact, that no bank, that launches the new product, is not secured against the commercial failure, Íåñìîòðÿ íà òî, ÷òî íè îäèí áàíê, çàïóñêàþùèé íîâûå ïðîäóêòû, íå çàñòðàõîâàí îò êîììåð÷åñêîãî íåóñïåõà, Sergej Ravniago thinks, that today it is the timely product for Ukraine. On one hand, the card certifies to the financial sustainability, and on the other hand it speaks for the level of the bank’s reputation. The reputation risk, which is an important issue for any bank, would not allow to issue "Visa Infinite", proceeding only from the amount of money on the account, not taking the capital origin into account.
Herman Bogapov
N28 (360) - 07/2005