GE Declares Credit Card War in Australia

By Richard Gluyas and Anna Fenech, The Australian

GE is preparing an all-out assault on the $30 billion Australian credit card market, aiming to overtake the Big Four banks and become the nation’s leading card issuer within a few years.

GE Money president for Australia and New Zealand Tom Gentile outlined the ambitious plan yesterday after launching the Wizard Clear Advantage MasterCard, the latest entrant in the rapidly expanding low-cost card segment.

In an interview with The Australian, Mr Gentile said that while there was a big gap between GE/Wizard and the industry leaders, the banks were going the wrong way to win or keep customers.

But he said GE Money saw a significant growth opportunity in credit cards, mainly arising from the Big Four raising fees and cutting loyalty programs to offset a $400 million decline in interchange revenue from the Reserve Bank’s 2002 reforms.

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