LIC and GE might tie up for Credit Card business

The present scenario is pointing towards a possible discussion between Life Insurance Corporation of India and GE Capital Services, which is the largest issuer of private label credit cards. LIC is planning to issue its credit cards for some time now.

GE is already in a partnership with the State Bank of India for credit cards. Sources are pointing out that the talks with LIC are still at a very preliminary stage and in case of a tie up, a detailed code of conduct will by followed by GE, which prohibits any kind of sharing of business information.

LIC’s motive behind venturing into credit card business is providing help to its policyholders, letting their agents utilize their time better by selling credit cards and on the whole enhance their brand reputation.

Credit card business bears huge potential in the Indian sub continent. Getting into credit card business will allow LIC to leverage its data on policyholders’ credit worthiness and price the card competitively.

Sources also indicate the possibility of LIC getting into a three-way venture with a bank. Corporate Bank could be a part of this venture.