Secured card plan aimed at Asian-Americans.

A newly founded bank and a slightly more experienced card service provider have joined forces to launch a secured credit card program primarily targeting Asian-Americans.

Panasia Bank, based in Fort Lee, N.J., will begin offering the MasterCard and Visa cards in January. Though they'll be available nationwide, the bank is focusing on its base in Bergen County and advertising in local and Asian-interest media.

Asian-Americans provide a solid, untapped opportunity for secured cards, which require that a deposit be set aside as collateral for the credit line, said Moon S. Yang, Panasia's president and chief executive officer.

Credit History Lacking

That's because, he said, many are recent immigrants with little or no credit history.

"They don't have a credit record here yet, but they tend to stay in the country a long time," Mr. Yang said.

About 60% of Panasia's customers are Asian, he added.

The program will also be marketed heavily in other areas with a high concentrations of Asian-Americans, including elsewhere in the New York City area and Northern California.

Fees and Interest Charges

The bank's service provider, Applied Card Systems Inc., has created "some very solid contacts" in Asian-American merchant and community organizations on both coasts, according to Dennis Fish, Applied Card's marketing manager. The New Castle, Del.-based company will also handle all back-office needs for the program, including applications, credit evaluations and approvals, plastic card ordering, and billing.

A two-tier rate schedule will allow cardholders to choose between a relatively low annual percentage with a higher annual fee, or vice versa.

Those who pay a $39 fee pay an 18.99% rate on credit balances, while those who pay a $75 annual fee will pay 12.99%. The minimum security deposit is $375, and credit lines run $100 in excess of the deposit.

Mr. Fish expects that 95% of the applications will be approved, based on his company's past efforts. He added that the bank hopes to bring on 5,000 accounts within the first year.

Nine Months Old

The card program is a new venture for Panasia Bank, but so is everything else. Panasia was founded in April 1993 with $6 million of capital. Since then, the bank has grown to $15 million in assets and recently acquired the credit card portfolio of Jefferson National Bank, Watertown, N.Y., which had been taken over by federal regulators in February.

Jefferson's 5,000 accounts - a mix of secured and unsecured cards - had $2.7 million of outstanding balances and provided a foundation for Panasia's secured program.

"A good portion of the Asian-American market is fairly new to the country, and may have difficulty getting credit through traditional sources," Mr. Fish said. "The secured market is good place to start."

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