It was clear from the outset that the launch of a Valletta FC branded card in November 2013 was not your normal press event. For a start, it was a gala dinner at one of the most prestigious locations, and the guests included top businessmen and decision-makers. When one of the investors behind the card, Michael Surguladze, and his considerable entourage stepped out of their limousines, any doubt was banished.

This may have been the launch of a card aimed at a few hundred football fans, but the long-term investment was clearly something much larger. Within months, more cards were launched by Insignia Cards, under the Yes brand, aimed at the Maltese market, but even then it was obvious that there was yet more to come.

Mr Surguladze, described by interested parties as “a man of means”, is now happy to reveal the larger picture: a bank to process card payments, tied to a card which will target 10 million users and challenge American Express, and one that could employ as many as 400 people.

Normally, when confronted with such a claim, you would Google the investor to see whether he is up to the challenge, but spare yourself the time: you will not find anything about him online, something that the European Central Bank and Malta Financial Services Authority also clearly realised when they embarked on the strict due diligence required before granting a banking licence.

“They asked me why I don’t give interviews and so here I am,” he said with a shrug.

Considering that it has been some 15 years since he granted an interview, Mr Surguladze was remarkably affable and open. But old habits die hard. He absolutely refused to be photographed.

A Georgian by birth, he moved to Russia and when perestroika paved the way for private business in 1987, he and some others went into publishing, first printing everything from classics to Solzhenitsyn, and then importing foreign magazines.

Football was already a passion and his group was the first to privatise a football club. Decades later, he would become heavily involved with the Red Knights, a group of investors who put together a failed £1.5 billion bid to buy Manchester United from the Glazer family.

“I still want to buy Manchester United!” he laughed.

“When we started showing interest in Manchester United, Everton came along, and wanted us to buy them! I am still very close to people who own sports teams; Chelsea owner Roman Abramovich is a very close friend of mine.”

Apart from the Insignia Valletta FC card, he also signed a two-year sponsorship deal with the club which enabled them to get a Dutch coach and manager, as well as a few top players, all of which helped them to win the double.

But it was the company’s links with American Express which set him on the path which brought him to Malta. They introduced the card to the Russian market in 1995 and held the sole agency for seven years. In 2001, they decided to go it alone, wanting to offer a more bespoke product, launching first the Royal card in 2002, aimed at high net worth individuals, and the Glamour card in 2005 for women.

Michael Surguladze declined to be photographed.Michael Surguladze declined to be photographed.

“Glamour allowed women to break all spending records! Until 2008, when the crisis really affected women’s spending as their cards were removed,” he said, grinning.

The cards were originally issued by mostly European banks through an affiliated programme, but the company handled the processing, benefits limits, risk and compliance. The thirst to go it alone was still not quenched and in 2007, they decided to try to do without the bank, keeping everything in house, similar to the AmEx model that they knew so well. They started to look around for somewhere to base the payment systems bank – but the project was put on hold during the global financial crisis.

When the project was taken off the back burner, Austria emerged as the favourite location but Mr Surguladze then met Joe Zammit Tabona, at the time Malta’s High Commissioner to London, at a Malta Business Network event.

“He persuaded me to come here and I met seven ministers during that trip,” he said. “The authorities wanted to know what I would offer Malta. Malta is clearly too small to be a market for our cards but they all need to be tested and that is what we have been doing so far. We offer a luxury lifestyle card for a fraction of the cost, with all the benefits that AmEx gives its customers, such as a personal assistant service and higher limits and so on.”

And the Valletta FC card also turned out to be a test before they embarked on a much grander scheme for European club cards.

“The next teams will be a big European one and a British one, one of the greatest British teams – but not Manchester United,” he said with another grin.

Ultra-rich people have excellent connections. Soon you will see the headquarters of the biggest companies here

The plans are grand and will clearly represent considerable investment, much of which will be in developing the new skills this activity will require. He plans to take on young lawyers and accountants and send them overseas for training.

In the meantime Insignia opened a sister company to take over lifestyle management, with Frederick Ellul moving over as CEO, and Tim Zrinzo being appointed CEO of the cards business.

Mr Surguladze thinks that the time is ripe for Malta to learn what the uber-rich want, especially as more and more are drawn to the island by the Individual Investor Programme, pointing out that he is a UK citizen as did not need to apply himself.

“They say some countries are cheaper but here you can get it without any problems. In Portugal it is half the price of Malta but you have to know Portuguese! If you pass the due diligence process you are welcome here.

“My friends are very excited about this programme. It was an amazing decision and it is the future of Malta. By the end of this year, you will see how it will affect you,” he said.

“This is already my second home. What is important is the Maltese people. We feel so comfortable here. And I am welcome everywhere. It is the only English-speaking country in the eurozone and Schengen.

“Ultra-rich people have excellent connections. Soon you will see the headquarters of the biggest companies here. Private jets will be coming here but there is no five-star luxury hotel on the island. The Hilton is fine but this is for tourists. You have no experience here when it comes to dealing with these individuals.

“Malta will need a lot of investment. For example, Valletta will be the European Capital of Culture in 2018. It should not look so shabby. You have the chance to become the centre of financial services in Europe.

“There are problems but they are known. There is a big problem with bureaucracy, a big brake for private sector.”

He has worked with both governments and said he was impressed by the transition.

“I like youngsters. When you get old, you like young people! They might have less experience but they are hungry to transform the country. They have one big benefit. They keep stability.”

While they await the final licences, they are setting up a charity for Maltese children who have a health problem, hospital care to overseas surgery.

“We will put our own money into the Wish Granters Foundation. The Valletta FC sponsorship might have been for public relations but this is not for the media; this is for God. God will see what we are doing...” he said.

He is leaving the charity in the hands of Mr Zammit Tabona, clearly uncomfortable with the limelight.

But he is well aware that with his lack of public track record could generate doubt – and suspicion.

“Unfortunately, too many people associate the lack of a public profile with being a criminal or a money launderer or so on... I understand that when people come from nowhere with billions the assumption is that it is money laundering. But there are a lot of anti-money laundering regulations and compliance processes.

“I put myself as the sole shareholder because I knew that I would be scrutinised by the MFSA, the local intelligence service and the European intelligence service. They will do full due diligence on me. I am sure about my background,” he shrugged.

“The same happened with Roman Abramovich. He was very closed but once he bought Chelsea he knew he had to raise his profile. Buying Chelsea is like buying Buckingham Palace! Everyone wanted to know who he was. And there are plenty of top European businessmen who are the same. But people now need to know who am I, so here I am...”

The plans are to eventually bring big American financial institutions on board, and a few individual investors from different countries which will allow them to tap far- flung markets.

“So the number of shareholders will increase – we also plan to go public. It gives transparency and accountability.”

The Universe card, to be launched in spring, will cost around €100 and will target the ‘mass affluent’ – but would still give them the benefits associated luxury cards which cost €5,000. There will be a welcome pack, assistance with travel and lifestyle support, insurance, rewards programme, and even a birthday present.

How can they afford this? He believes the set-up is the key to success.

“There are only a very few banks which are concentrated only on cards. Capital One is huge but is only focussed on a few markets, the US and the UK. We are focused on emerging markets. Of course we will also bring to the US and the UK but this is not our target.

“Our second competitor is Barclaycard, which is mainly focused on the UK. The third is AmEx itself: they are our competitors and we will challenge them.”

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