First Bank System Expands Visa Corporate Card Services Internationally with Hong Kong Shanghai Banking Corp.

Strategic Insights -

Under an exclusive strategic alliance with Hong Kong Shanghai Banking Corp., First Bank System is set to extend its Visa corporate card services internationally to employees of multinational organizations based outside of the United States. Midland Bank plc, a London-based wholly owned subsidiary of Hong Kong Shanghai Bank, will become the first bank under the alliance to issue commercial cards modeled after the First Bank Visa Corporate Card. This strategic alliance is poised to provide First Bank System's customers with a competitive edge in the international market, as it enables them to offer their employees a card that can be used for virtually every travel purchase, accepted by some 12 million locations around the world.

Key Takeaways:

  • The alliance will allow First Bank System to provide international service to its customers, meeting the growing demand for global services.
  • Midland Bank will market its own Visa corporate and purchasing cards to U.K.-based employees of U.S. corporations, with complete data on cardholder use made available to First Bank Corporate Payment Systems.
  • The alliance will offer features and benefits virtually identical to those of the First Bank Corporate Card, including widespread acceptance, access to the world's largest cash advance system, travel accident insurance, lost or damaged luggage assistance, and comprehensive 24-hour-a-day travel aid.
  • Cardholders will be able to use their cards for almost all travel expenses, providing corporations with the most comprehensive travel management information offered today.
  • Participating banks will service employees of multinational organizations in their respective currencies and languages, eliminating foreign exchange and translation issues and costs related to currency conversion.
  • First Bank Corporate Payment Systems will integrate international spending information into reports for its U.S. corporate customers, providing them with even more comprehensive spending information.
  • The alliance will enable First Bank to provide its customers with even more detailed documentation on card usage, further strengthening companies' negotiating position with suppliers and improving their ability to manage spending.

Statistics:

  • The international card market has wide acceptance, with the Visa card accepted at some 12 million locations around the world.
  • Cardholders will have access to the world's largest cash advance system, with over 234,000 ATM locations in 87 countries or more than 371,000 member banks.
  • The First Bank Corporate Card is the second most prevalent corporate travel and entertainment card on the market, serving travelers at over 150 Fortune 500 companies.
  • First Bank pioneers the Purchasing Card, an innovative application that enables companies to reduce dramatically the time and expense associated with traditional purchase requisition procedures.
  • The Purchasing Card can help companies save processing costs of $50 to $150 per purchase.
  • First Bank System has assets of approximately $32 billion and operates through nine banks, a savings association, and other financial companies with 343 offices.

Sources:

  • PRNewswire, "First Bank System Extends Visa Corporate Card Services Internationally" (May 15, 1995)
  • First Bank System Press Release, "First Bank System and Hong Kong Shanghai Banking Corp. Announce Strategic Alliance" (May 15, 1995)
  • Midland Bank plc Press Release, "Midland Bank and First Bank System Form Strategic Alliance" (May 15, 1995)