Ever wondered why Nedbank has always been associated as being a bank for old people? well you’re about to find out!
Nedbank has a reward program (surprise!!!!) which rewards clients for spending using their linked cheque and credit cards. Its evident that the bank is trying to encourage clients to swipe for spending as opposed to using cash.
A friend that works at a bank said to me yesterday “someone may be asking why banks reward you for swiping your card. Maybe mention that it’s because they earn interswitch fees from Visa/Mastercard when you use your card, so everyone wins” this is true and to add, the fees they earn are higher on the credit card than say on the debit card for example.
The Nedbank reward program is called Greenbacks – Green being money and the banks colour, not bad right? Greenbacks aren’t as complicated as other reward programs, in the sense that there aren’t levels for the reward programme based on the services you utilise with the bank (FNB for instance has levels for their eBucks reward program, the higher your level the better the points and discounts you get), as long as you are enrolled for the program you will receive 1 Greenback point for every R5 spent using your Nedbank Greenbacks Mastercard, 2 Greenbacks points for every R5 spent using your Nedbank American Express card.
This all makes sense right? if a large sum of your customers are old people you have to keep things very basic, simple and easy to understand. Don’t try ask them to login 4 times a month on their banking App because that ain’t gonna happen bro! Ask FNB how that went for them…
Unfortunately not many vendors accept American Express cards as it’s more expensive for them compared to Visa and Mastercards. Nedbank has a deal with American Express, through the structure of the program, and its evident that Nedbank is attempting to get clients to always ask “do you guys accept American Express?”, prior to whipping out their Mastercard.
The once of initiation fee is R150 (bummer since it’s free at some other banks), the bank waivers the fee for certain bundles i.e. Professional Banking. The client may use the accumulated points to purchase products from certain vendors e.g. Netflorist, SAA, Healthspas etc and a large variety of different shops. You may also elect to use the points to pay for your Banking Fees, donate to charity and/or invest in Nedgroup Unit Trusts. You may also elect to convert the points to cash. Not bad at all, but I am sure you are wondering what the conversion rate is well… I’m still yet to find the exact answer to that.
The conversion rate is driven by the proposed use of the points, for example, 2800 points are required for a R100 investment in a unit trust, 3300 points are required to convert the points to R100 cash. How do you expect my Gramps to figure that out dude????
The program can be advantageous to the client if used properly and taken seriously. The only downfall is that there is no form of savings behaviour that this program encourages, it’s all instant gratification and spending like crazy to get more point. Not cool bro! Nedbank, if you’re out there and you’re reading this piece, please give points for saving as well ya dig?
If you’re already bank with these guys enquire about the program at the branch (do those still exist?), request the brochure which contains much more detail prior to making any decisions.
Swipe, Earn, and Spend!