Financial Cards in the Czech Republic
Euromonitor International's Financial Cards in the Czech Republic report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
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Tables: 98 | Publication date: Mar 2008
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Financial cards in circulation; Transactions
Executive summary
Highly Dynamic Industry
The Czech financial cards industry continued to display double digit growth rates in 2007, driven by rising living standards and strong demand for consumer credit. While the volume of cash withdrawals is slowing down, POS transactions are on the rise, driven by the growing acceptance of plastic cards among Czech consumers.
Growing Use of Financial Cards
Financial cards are increasingly used for everyday purchases instead of cash. Increased safety was one of the key factors in stimulating more frequent use of debit and credit cards. 2007 also saw continued efforts to enhance card safety, with a large proportion of cards and almost all ATM and EFTPOS terminals already migrated to the EMV chip and pin standard.
Double Digit Growth in Credit Cards
The last three years of the review period witnessed unprecedented growth of both personal and corporate credit cards. Demand for financial cards was driven by rising personal incomes, rising employment, a strong economy and a growing preference for consumer credit. The banks are using co-branding, card personalisation and enhanced security to boost card numbers and increase usage rates. The credit card industry is unsaturated and offers large potential for growth.
Growing Use of the Internet for On-line Banking and E-Commerce
Banks are expanding their sales channels making cards available via the telephone and the internet. These institutions are making use of their rapidly growing consumer loan and mortgage databases to sell card products. Cards are increasingly used for on-line purchases, particularly household electronics, resulting in steady growth in internet transactions over the review period.
Growing Demand for Consumer Credit
While Czech indebtedness is rising, it is still low in relation to the national GDP, which gives the banks plenty of scope to further penetrate the marketplace. Relatively high disposable incomes, a credit comfortable culture, combined with a strong economy, equates to highly significant potential for credit cards in comparison with neighbouring economies such as Germany and Austria.
Targeting Young People and Small- to Medium-sized Companies
Czech banks are competing by offering an ever wider range of bonus and co-branding programmes, free insurance against fraudulent use of cards, extended interest-free periods and exclusive travel and insurance benefits. While the focus is on young people in personal cards, efforts are made to increase card penetration among small- to medium-sized enterprises (SMEs) and entrepreneurs in the corporate sector.
Consolidation in Retail Banking
The financial cards industry is highly competitive and dominated by a triumvirate of banks comprised of Ceska sporitelna, Komercni banka and CSOB. In 2006, HVB bank merged with Zivnostenska while Raiffeisenbank merged with eBanka creating the fourth and fifth strongest competitors in the marketplace respectively. The leading banks are owned by pan-European banking groups, including KBC, Société Généralé, Erste Bank and Unicredit Group.
Table of contents
FINANCIAL CARDS IN THE CZECH REPUBLIC : MARKET INSIGHT
EXECUTIVE SUMMARY
Highly Dynamic Industry
Growing Use of Financial Cards
Double Digit Growth in Credit Cards
Growing Use of the Internet for On-line Banking and E-Commerce
Growing Demand for Consumer Credit
Targeting Young People and Small- to Medium-sized Companies
Consolidation in Retail Banking
KEY TRENDS AND DEVELOPMENTS
Strong Economy Boosts Consumer Spending
Boom in the Housing Sector
Industry Focus on EMV Migration
Leading Banks in Foreign Hands
Promotion Focuses on Gaining New Clients
Baby Boomers and the Young Are Key Targets for Credit Cards
Strong Retail Demand Boosts Usage of Financial Cards
OPERATING ENVIRONMENT
Consumer Credit and Lending
Issuer Fraud
Acquirer Fraud
E-commerce
M-commerce
ATM and POS Terminals
Cash Withdrawal vs Card Purchase
Governmental Regulation and Legislation
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2007
Table 2 Number of ATMs 2004-2007
Table 3 Disposable Income 2002-2007
Table 4 Consumer Credit 2002-2007
Table 5 Value Lost to Fraud 2002-2007
MARKET DATA
Table 6 Financial Cards: Transactions 2002-2007
Table 7 Financial Cards: Value 2002-2007
Table 8 Financial Cards: Number of Cards in Circulation 2002-2007
Table 9 Financial Cards: Number of Accounts 2002-2007
Table 10 Domestic versus Foreign Spend 2007
Table 11 Card Expenditure by Sector 2007
Table 12 Card Expenditure by Location 2007
Table 13 Financial Cards: Number of Internet Transactions 2002-2007
Table 14 Financial Cards: Internet Transaction Value 2002-2007
Table 15 Financial Cards: Number of Cards by Issuer 2002-2006
Table 16 Financial Cards: Number of Cards by Operator 2002-2006
Table 17 Financial Cards: Point of Sale Transactions by Acquirer 2002-2006
Table 18 Financial Cards Forecast: Transactions 2007-2012
Table 19 Financial Cards Forecast: Value 2007-2012
Table 20 Financial Cards Forecast: Number of Cards in Circulation 2007-2012
Table 21 Financial Cards: Forecast Number of Accounts 2007-2012
Table 22 Financial Cards Forecast: Number of Internet Transactions 2007-2012
Table 23 Financial Cards Forecast: Internet Transaction Value 2007-2012
DEFINITIONS
Cards by Type
Cardholder Behaviour
Card Expenditure by Sector
Value Lost to Card Fraud
Consumer Credit
Market Background
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CZECH REPUBLIC
CESKA SPORITELNA AS - FINANCIAL CARDS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Ceska sporitelna as: Key Facts
Summary 3 Ceska sporitelna as: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
CITIBANK AS - FINANCIAL CARDS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Citibank as: Key Facts
Summary 5 Citibank as: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
HVB AS - FINANCIAL CARDS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 6 HVB Bank Czech Republic as: Key Facts
Summary 7 HVB Bank Czech Republic as: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
KOMERCNI BANKA AS - FINANCIAL CARDS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Komercni banka as: Key Facts
Summary 9 Komercni banka as: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
RAIFFEISENBANK AS - FINANCIAL CARDS - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Raiffeisenbank as: Key Facts
Summary 11 Raiffeisenbank as: Operational Indicators 2004-2006
COMPANY BACKGROUND
COMPETITIVE POSITIONING
SMART CARDS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Smart Cards Sector Performance: 2002-2007
Table 25 Smart Cards Sector Performance: % Growth 2002-2007
Table 26 Smart Cards: Memory vs Microprocessor 2004-2007
Table 27 Smart Cards: Contact vs Contactless 2004-2007
Table 28 Smart Cards: Forecast Sector Performance: 2007-2012
Table 29 Smart Cards: Forecast Sector Performance: % Growth 2007-2012
ATM TRANSACTIONS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 30 ATM Cards Sector Performance: 2002-2007
Table 31 ATM Cards Sector Performance: % Growth 2002-2007
Table 32 ATM Cards: Forecast Sector Performance: 2007-2012
Table 33 ATM Cards: Forecast Sector Performance: % Growth 2007-2012
DEBIT TRANSACTIONS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 Debit Cards Sector Performance: 2002-2007
Table 35 Debit Cards Sector Performance: % Growth 2002-2007
Table 36 Debit Cards: Number of Cards by Issuer 2002-2006
Table 37 Debit Cards: Number of Cards by Operator 2002-2006
Table 38 Debit Cards Transactions by Acquirer 2002-2006
Table 39 Debit Cards Transaction Value by Operator 2002-2006
Table 40 Debit Cards: Forecast Sector Performance: 2007-2012
Table 41 Debit Cards: Forecast Sector Performance: % Growth 2007-2012
CREDIT CARD TRANSACTIONS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Credit Cards Sector Performance: 2002-2007
Table 43 Credit Cards Sector Performance: % Growth 2002-2007
Table 44 Personal Credit Cards Sector Performance: 2002-2007
Table 45 Personal Credit Cards Sector Performance: % Growth 2002-2007
Table 46 Corporate Credit Cards: Sector Performance: 2002-2007
Table 47 Corporate Credit Cards: Sector Performance: % Growth 2002-2007
Table 48 Credit Cards: Number of Cards by Issuer 2002-2006
Table 49 Credit Cards: Number of Cards by Operator 2002-2006
Table 50 Credit Cards Transactions by Acquirer 2002-2006
Table 51 Credit Cards Transaction Value by Operator 2002-2006
Table 52 Personal Credit Cards Transactions by Acquirer 2002-2006
Table 53 Personal Credit Cards Transaction Value by Operator 2002-2006
Table 54 Corporate Credit Cards Transactions by Acquirer 2002-2006
Table 55 Corporate Credit Cards Transaction Value by Operator 2002-2006
Table 56 Credit Cards: Forecast Sector Performance: 2007-2012
Table 57 Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 58 Personal Credit Cards: Forecast Sector Performance: 2007-2012
Table 59 Personal Credit Cards: Forecast Sector Performance: % Growth 2007-2012
Table 60 Corporate Credit Cards: Forecast Sector Performance: 2007-2012
Table 61 Corporate Credit Cards: Forecast Sector Performance: % Growth 2007-2012
CHARGE CARD TRANSACTIONS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Charge Cards Sector Performance: 2002-2007
Table 63 Charge Cards Sector Performance: % Growth 2002-2007
Table 64 Personal Charge Cards Sector Performance: 2002-2007
Table 65 Personal Charge Cards Sector Performance: % Growth 2002-2007
Table 66 Corporate Charge Cards: Sector Performance: 2002-2007
Table 67 Corporate Charge Cards: Sector Performance: % Growth 2002-2007
Table 68 Charge Cards: Number of Cards by Issuer 2002-2006
Table 69 Charge Cards: Number of Cards by Operator 2002-2006
Table 70 Charge Cards Transactions by Acquirer 2002-2006
Table 71 Charge Cards Transaction Value by Operator 2002-2006
Table 72 Personal Charge Cards Transactions by Acquirer 2002-2006
Table 73 Personal Charge Cards Transaction Value by Operator 2002-2006
Table 74 Corporate Charge Cards Transactions by Acquirer 2002-2006
Table 75 Corporate Charge Cards Transaction Value by Operator 2002-2006
Table 76 Charge Cards: Forecast Sector Performance: 2007-2012
Table 77 Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 78 Personal Charge Cards: Forecast Sector Performance: 2007-2012
Table 79 Personal Charge Cards: Forecast Sector Performance: % Growth 2007-2012
Table 80 Corporate Charge Cards: Forecast Sector Performance: 2007-2012
Table 81 Corporate Charge Cards: Forecast Sector Performance: % Growth 2007-2012
PRE-PAID CARD TRANSACTIONS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
STORE CARD TRANSACTIONS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 82 Store Cards Sector Performance: 2002-2007
Table 83 Store Cards Sector Performance: % Growth 2002-2007
Table 84 Store Cards: Number of Cards by Issuer 2002-2006
Table 85 Store Cards Transactions by Acquirer 2002-2006
Table 86 Store Cards: Forecast Sector Performance: 2007-2012
Table 87 Store Cards: Forecast Sector Performance: % Growth 2007-2012