Banking competition gets personal

Responding to the nab ‘breaking up’ campaign (see http://www.itsafinancialworld.net/2011/02/lessons-to-be-learnt-on-banking.html ), Commonwealth Bank has decided to get personal by making offers to only nab customers and not to those of the other Four Pillars (Westpac and ANZ). These include paying up to AUS$1400 (£865) to customers from nab who switch their home loans, credit cards or current accounts to CBA. They are also offering a discount of up to 80 basis points on loans above AUS$750 (£470) to customers from the nab.

This is a very pointed campaign and is focussed, not only on nab, but specifically the “sticky” or anchor products that are seen as the ones that maximise customer retention on the basis of a short term loss of margin for the gain of a long term relationship with the profits that go with that.

Such personal marketing campaigns have not yet been seen in the UK as the banks try to maintain some solidarity against the common enemy of the government and the media, and anyway it is not the ‘british’ way of doing things, however with increasing pressure to demonstrate that there is real competition amongst the big players and with three of the big 5 banks not being run by Brits, maybe we will soon see a more aggressive style of campaigning breaking out here in the UK.

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