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04 Apr
FNB is now offering free Starbucks coffee, free online courses and armed response, among other things, to keep its customers happy and steal market share from its competitors.
The FirstRand-owned bank is not a stranger to adding products and services that have nothing to do with banking to its platforms. It started with its eBucks loyalty programme, and then there was the nav» platform that enabled customers to renew their vehicle licences and sell their cars and homes, among other things.
READ | Want to sell your car? FNB has an app for that
But by offering free coffee and panic buttons, FNB is now taking on the likes of Discovery Vitality and other big insurers who have been offering rewards to their clients for some time. For instance, Vitality offers free coffee, smoothies and popcorn from retailers such as Kauai, Mugg & Bean and Ster-Kinekor, while Momentum’s Multiply rewards programme also has weekly rewards that can be redeemed as coffee or shopping vouchers at various retailers and restaurants.
FNB CEO Jacques Celliers said what makes FNB different, however, is that customers still don’t pay for eBucks, whereas other financial service firms’ rewards programmes come at a price.
Celliers said these new “lifestyle solutions” are about differentiating FNB in the highly competitive retail banking space.
But even more so, they are about retaining the bank’s existing customers and making sure that the bank still gets the lion’s share of their transactional activity as customers now have multiple banking relationships.
He said FNB has thought about this long and hard. It has “really big aspirational targets” to grow these value propositions for customers.
“We see these types of value propositions as great ways of starting new relationships, and at the same time, the second value creation for us is retention. As we build deeper relationships, all these value propositions really add value for us,” he said.
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What’s new
Individual customers of FNB and RMB Private Bank can get complimentary coffee or a hot beverage of their choice up to R37, once a week, at Starbucks if they conclude at least five transactions using FNB Pay.
The bank has also partnered with online course provider Udemy to bring 400 courses to customers for free. Its customers will pay only a R50 activation fee and can enrol in up to six courses per year. Although it launched with 400 courses, FNB said it will reevaluate if it needs to add more. Customers that already have a Udemy account will be able to get a code from the app to access their chosen courses.
The bank also launched an armed response and medical emergency services access, which customers can access by tapping a panic button on the app. This is usually offered by short-term insurers, including OUTsurance, MiWay, Momentum, and First4 Women. After three months, customers will pay R19.90 a month per user for the service.
There’s also eBucks Games, a mobile gaming platform with no monthly subscription. Customers can buy games on-demand with their eBucks.
The bank’s virtual mobile operator, FNB Connect, is also running heavily discounted cellphone and other device deals. For instance, it is selling a Samsung A32 from R149 a month with data and voice bundles, while mobile operators’ prices start from around R250 to R350 a month.
“Again, the biggest differentiator for us is obviously the price point. It’s a massive price point game,” said Celliers.
Furthermore, FNB has officially acquired SLOW Lounge in OR Tambo, Lanseria, King Shaka, and Cape Town International airports. The bank announced late in 2021 that it would buy SLOW Lounge from Comair.
Celliers said that transaction, too, was about keeping FNB customers happy with the rewards they were getting. It’s not trying to run it as another revenue-generating business. But Comair had challenges. So, FNB saw an opportunity to make “more innovations” on the airport experience it gives its customers.
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