Banco de Oro Unibank Incorporated or BDO, the Philippines’ largest bank and a member of the SM Group of Companies, announced last June 14 that it has accepted the offer to acquire the rights to become the exclusive issuer of Diner’s Club International (DCI) credit cards in the country from SB Cards, the credit card subsidiary of Security Bank Corporation.
SB Cards, which had offered to sell their Diner’s Club Int’l exclusivity recently, will also include in the transfer of rights along with their existing DCI portfolio, their base of active Diner’s Club cardholders. The formality of the handover deal is expected to take, after some approval, no later than three months. The exact details on the acquisition’s financial value were not disclosed to the public. The move was, according to SB Cards president Ma. Cristina Tiongson, a strategic move to streamline their own credit card portfolio with only MasterCard to focus on as their main credit card offering. Despite the loss of their rights to DCI card issuance in the Philippines, Security Bank’s card business is still a vital component of their Retail Bank and an important thrust in their total growth. Tiongson also pledged their company’s systems and operation support to BDO to guarantee a smooth changeover of the portfolio and cardholder base between them during the interim.
BDO is the country’s top issuer of the largest variety of credit card brands, holding issuance rights for Visa, MasterCard, American Express, China UnionPay and JCB. The new partnership with Diner’s Club International is but another feather in its portfolio cap to deliver new customer benefits to BDO card members, according to BDO executive vice president Rolando Tanchanco.
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