APRIL 2004

U.S. Credit Grantors Look Overseas

David Nissen, president and CEO of General Electric Company’s Consumer Finance Division has announced that it will soon have a new name, GE Money, in the 37 countries where it operates. The division specializes in developing private-label charge cards for retailers such as Wal-Mart. However, GE Consumer Finance has its own cards in other countries, including China. Started in the early1930s, and including GE Commercial Finance, the division has grown at an annual rate of 20 percent for the past 20 years. As the Chinese gain purchasing power, management expects the growth to accelerate.

Speaking of Asian expansion, U.S.-based Citigroup invested $2.73 billion to acquire KorAm bank, a mid-sized South Korean lender. Citigroup is also the first foreign bank to issue a credit card in China that can be paid in yuan. In a recent Wall Street Journal, Joel Baglolole reports that Citibank is the first foreign bank to issue in China a credit card that can be settled in either Chinese yuan or American dollars. To herald the new venture, Citibank’s CEO Charles O. Prince flew to Shanghai to promote the new card. The promotion was highlighted by a parade of floats through the streets of Shanghai. Fortunately, Chinese citizens who are embracing American consumer credit offerings can look to the web to read Spotlight on Finance.