Retail banks can swipe back in new fee paradigm for cards

DBS Bank's latest strategy in its retail fee business cuts to the fierce competition in this market as the card fee model comes under siege, particularly with the rise of financial technology firms (fintechs).

Singapore's largest bank this month tied a Visa debit card to an existing multi-currency account. The account allows customers to convert money into more than 10 foreign currencies - including the G4 currencies, the Hong Kong dollar, Thai baht and the Australian dollar - and with the card, money can now be spent on travels or to make online purchases that are priced in these foreign currencies. This means customers do not incur fees on credit card transactions.

A card tie-up usually invites little analysis other than the ones found on a comparison site, and that is telling of how most card products have been about targeting a client base, mainly with cash back and airmiles.