FGB credit card offered with ‘selfie’ feature

FGB’s ‘My Card’ credit card allows customers to upload customised images to their cards, even their selfies. Frank Augstein / AP Photo

One of Abu Dhabi’s biggest banks is offering customers credit card “selfies”.

It is the latest move by banks to win over new customers and boost lending by offering credit cards that stand out in an increasingly crowded market.

FGB's "My Card" allows customers to upload customised images on to their card – meaning that your face or that of your loved ones will beam back at you every time you make a purchase.

“It’s like a mini-billboard in the customer’s wallet,” said Girish Advani, the head of FGB’s mass market segment. “A credit card allows you to cross-sell with a large range of brands.”

The UAE has about two million credit card users, with the average customer using their card between two to five times a day.

Credit card customers are an increasingly important segment for retail banks, where they can generate much bigger interest rates than on a standard personal bank loan or overdraft facility.

Tony Graham, the executive vice president of retail banking at United Arab Bank, said: “The average interest rate on a credit card is anywhere between 12 to 24 per cent, while the cost of funds is between 1 and 2 per cent – that’s a very big margin.”

The credit card business is particularly lucrative for UAE lenders, with interbank borrowing rates at historic lows of just over 1 per cent.

“There isn’t much of a correlation between what banks pay for cost of funds, and what they charge for credit cards,” said Mr Graham. “Historically, margins have been quite large.”

This has meant UAE consumers are faced with a multitude of products, as banks seek to boost revenues.

The rates comparison website Souqalmal lists more than 200 different credit cards available from the country’s banks.

Cross-promotion has become a popular way to sell credit cards, as banks seek to “personalise” their product offerings, Mr Advani said.

Many banks have also struck partnerships with top-flight European football clubs to promote their cards.

Emirates NBD offers a Manchester United credit card, which gives customers who spend above certain thresholds the chance to win tickets to Old Trafford. National Bank of Abu Dhabi has also tied up with the European champions Real Madrid.

Credit card use has swelled in recent years as consumer confidence rebounds.

“You have more people coming into the country, economic activity has picked up and malls are busier,” Mr Graham said.

Follow The National's Business section on Twitter