Bank promoters splash the cash amid competition
British retail bank marketers are increasingly looking to cash incentives to lure new customers to open accounts as competition becomes ever fiercer.
As of 16 July 2024, six banks and building societies were now offering cash incentive offers for customers to open or transfer their primary current account.
Barclays, the Co-operative Bank, First Direct, Lloyds Bank, Nationwide, Santander and TSB were all offering cash incentives at the time of writing, of between £75 and £200.
The emergence of cash incentives as a hook for new retail customers comes as the UK financial services landscape continues to become more populated following efforts by the Financial Conduct Authority to stimulate challengers into the market.
Key to survival in the years ahead will be attracting younger consumers, according to a poll of senior banking executives, conducted by pollsters, Censuswide, on behalf of Tink.
Two thirds of those polled said getting Gen Z to open new accounts s now “a vital part of future proofing their business”.
“Strong competition in the retail banking market is offering consumers myriad options and providers to choose from,” said Jack Spiers, banking and lending director (UK&I) at Tink.