FNB is encouraging its mainstream customers earning below R100 000 per annum to embrace cheaper cashless transactions by rewarding customers to use their debit cards. In a market where cash is often drawn from an ATM to make purchases, card usage is now starting to show a greater acceptance.
The bank’s figures show that point-of-sale transactions are up by 27% since it launched a campaign to reward uses with airtime in May, while card fuel purchases are up by 116%.
With the average Smart customer earning rewards of around R24 per month, the bank paid out total Smart customer rewards in October of R7,5-million.
“We brought on this unique offering with our mainstream Smart account customers in mind. It caters specifically for these customers with a simple earn and pay out system with emphasis on their everyday lifestyle needs,” says Liné Wiid, CEO of FNB Transactional Banking and Mass Market.
FNB drives the use of electronic and digital platforms for transactions throughout its customer base. These platforms have proved to be a significant cost saver for the bank, which can then be passed onto the customer.
“Through our experience with our established eBucks Rewards programme, we know that incentivising is key to driving specific banking behaviour, and this is also working exceptionality well in the lower income market,” adds Wiid.
“The value in rewarding Smart customers with airtime lies in its simplicity,” says Wiid. “It is a straightforward earn-and-spend system and there is no subscription fee or registration required. Airtime is a valued commodity in this market.”
Account holders earn airtime as a reward through depositing their salary into their account, buying airtime and electricity through FNB’s digital channels, buying groceries at Checkers and Shoprite as well as buying fuel using their debit cards. Customers can also earn more if they have more products with FNB. There is no subscription fee.
“The most recent addition of rewards earned at Checkers and Shoprite speaks directly to this market, where one of the biggest expense items for the lower income household is grocery shopping,” says Wiid. “We have seen a significant increase in payouts in rewards since the introduction of additional partners and new rules; payouts to our Smart Account customers have almost doubled and October payouts topped an all-time record of R7,5-million in one month.”
Since inception FNB’s mainstream account base has earned more than R50 million in rewards paid.
“Rewards systems, designed with the customer in mind, can be a very good incentive to drive specific banking behaviour and add good value to the customer’s experience and lives,” Wiid says.