Creating the plastic alternative

Designation: General Manager, Central and Eastern Europe, Middle East and Africa - based in the Middle East
Company: Visa International

Gulf News: How do you lure customers in a society with an expatriate community of almost 80 per cent?

Seddiqi: On an ongoing basis, Visa works closely with member banks on a combination of usage campaigns, cardholder educational initiatives and strategic partnerships which not only help add further value to the convenience and safety that cardholders experience but also promote better understanding and use of cards.

Gulf News: How far do UAE banking regulations and technological infrastructure support the growing number of card users?

Seddiqi: With the increasing sophistication of consumers and their demands for value-added features, the number of cards has increased steadily over the years. This has also been the global experience with rapidly developing economies. Banks work together with Visa to ensure that the latest technologies are utilised to increase efficiency and security in electronic card payments. For consumers, features such as chip and pin technology, and for merchants, updating their terminals to accept all types of electronic payment products, is necessary and ongoing.

Gulf News: How far do you share the risk with banks in case of default cases?

Seddiqi: Risk management is a key area of focus for Visa and the banks. Since member banks have a direct relationship with cardholders and merchants they are best positioned to assess a borrower's capacity to repay debt. It is not in the banks' interest to encourage unserviceable debt so they undertake rigorous risk assessment before lending to any potential borrower. On the other hand, Visa plays a role in mitigating risk by supporting the banks with its own assessment tools. Visa has a fully-fledged risk management and fraud control team to strengthen security and counter fraud. We regularly host fraud forums for banks, regulators and law enforcement authorities to share industry insights and strengthen efforts to combat fraud.

Gulf News: What role will the credit-bureau play in limiting such cases?

Seddiqi: With the launch of the federal credit bureau in the UAE we would like to add that electronic payments are an efficient and convenient way for financial authorities to ease monetary policy and provide consumers and businesses with lines of credit. We support the launch of a federal credit bureau in the UAE and believe it will contribute to the development of a more secure lending environment, benefiting the entire financial sector.