Universities provide faculty, students with debit cards
In a move that is adding thousands of young customers to their customer base, banks are moving aggressively onto university campuses, distributing Visa and Mastercard debit cards to faculty, staff and students.
It looks like a classic win‑win situation: The universities see the cards as a convenient way to pay staff wages and distribute student scholarship funds while eliminating the need to handle large sums of cash; employees and students are relieved of the need to stand in long lines; and the bank adds thousands of new accounts that can be cultivated into long‑time, loyal customers for other banking services.
But the biggest benefit may be to the growing number of businesses like restaurants, clothing shops and travel agencies that accept the cards and market to college‑aged youths.
Kyiv National Economic University, Ukrainian Management Academy, Kyiv National Academy of Culture and Arts, the National Aviation University, Ternopil State Medical University, and the Sumy National Agrarian University.
Ihor Doroshenko, deputy head of the bank’s card department, said that Nadra began establishing workplace card programs because of the amount of money that was being wired into banks. Now, he said, card programs are “the best way to attract new clients to the bank.”
Signing up an entire university can mean a significant number of new accounts. When the National Aviation University decided to channel its scholarship and wage payments through Nadra Bank, the bank opened 11,000 new accounts.
In exchange for the opportunity to gain access to thousands of new customers, Nadra waives the fees – up to Hr 5 – that banks often charge to issue the cards.
To encourage the cards’ use, Doroshenko said that the bank has negotiated discounts for cardholders, pays interest and waives fees at the bank’s automatic teller machines.
“We had issued about 230,000 cards by August,” said Nadra’s Doroshenko. More than half of them were issued in conjunction with university payment‑card programs, he said.
Students and staff appear to like the cards, but there are glitches.
Iryna Olshyvska, an instructor at the Kyiv National Economic University, said she’s getting used to using her card, but was concerned when her salary wasn’t credited on the right day.
“I wondered where my money was and who had it,” Olsyvska said. “But I am happy that I do not have to stand in line waiting for my salary anymore.”
Yulia Shtul, a student at the Kyiv Economic University, said that she’s becoming “comfortable using the card,” but said her new Visa card also had symbolic value.
“It means that [Ukraine is] becoming like other developed countries,” she said.
Shtul said she received her card instead of cash when she arrived at the university to claim her scholarship payment.
“I was able to use my card while I was in Moscow,”she said. “Now when I go to other countries, I do not have to carry cash.”
“Payment card programs are good business,” said Ukrinbank’s Oleh Dydnuk. “It is good for both the banks and customers: Banks get more cash in their accounts, and customers get better service,” he said.
