News

Card use increasing among Indian middle class

March 13, 2012

Bangladesh's 30 million-strong middleclass makes up one-fifth of the population and they are increasingly choosing debit card transactions, said a news report at the financial express-bd.com.

Many Indian banks, including Mercantile Bank Ltd., have lowered card fees to attract new customers. "Even a few years ago, they were scared to use [ATM cards] due to higher charges. Now the bulk of the demand for such cards is coming from them," said Monindra Kumar Nath, deputy managing director for Mercantile Bank. He said the number of cardholders at the bank is increasing at a rate of more than five percent per year.

Iqbal Hossain, head of the IT Division of Prime Bank Ltd said that more than 10,000 customers are now getting ATM cards monthly compared to a rate or two to three thousand last year.

The demand for cards is also driving a demand for ATMs. In the first two months of 2012, the number of Mercantile Bank machines reached 56, compared with 31 in 2010. "Our 30 million-plus middle class is the key driver of growth of ATMs," Nath said.

Misum Maleha Munni, a customer waiting to withdraw cash at a Dutch-Bangla Bank ATM said banks should focus on ATM expansion rather than branch expansion. "We are getting necessary cash and information using electronic cards," Munni said. "I never thought of getting such kind of time-saving transaction facilities using ... plastic cards in a developing country like ours, which [makes] our life easier and smooth."

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