In the past, Banks in Shanghai usually turned down applications from foreigners to obtain a local yuan-denominated credit card. Foreign card applicants needed to produce a lot of paperwork, such as proof of property ownership, employment contracts and tax receipts. The process was long and slow, and it usually didn’t end up with credit card approval. Many expats have also found that credit cards issued by banks in their home countries don’t work in Shanghai, or, if they do, cardholders need to pay foreign-currency exchange fees. Now, the Bank of China’s Shanghai branch is offering yuan credit cards to foreigners with Type A work permits, which are given to top foreign professionals.

The Shanghai Administration of Foreign Experts Affairs recently joined hands with the bank to launch a special “fast-track” pilot program to streamline credit card applications for high-end foreign talent in the city. The Bank of China, located in the historical building at Bund 23, is an ideal partner for the program because it is the nation’s most international bank. There are nearly 90,000 foreigners in Shanghai with work permits. Of those, about 13,000 are Type A permits. To date, 30 foreigners have successfully used the program to obtain local credit cards. Feng Yanrong, Senior Manager of the bank’s Banking Department, admitted to Shanghai Daily that local banks are cautious about issuing credit cards to foreigners because expats usually live here temporarily, which presents a repayment risk. “If foreigners leave China and fail to repay credit card debt, it’s very difficult or sometimes impossible for us to collect,” she said. In the past her bank has issued credit cards to only a handful of foreigners, mostly top executives who are considered small risks.

Under the pilot program to apply for a local credit card, only a valid passport, a residency permit valid for a year or more, and a Type A work permit are required. The application process has also been shortened to about two weeks. Andres Ruiz-Linares, 57, Professor of Genetics at Fudan University, was the first to receive a yuan credit card from the bank under the program. Manager Feng said the trial program may be extended to other classes of foreigners following an evaluation. The Shanghai Administration of Foreign Experts Affairs said it also might be expanded to other banks, the Shanghai Daily reports.