The Evolution of Banking Strategies: From Gifts to Cash Incentives
Not so long ago, bank branches turned into marketplaces offering sets of pans, pots, TVs, video games, tableware, and cutlery as gifts to attract new customers. Now, banks are aiming to attract the monthly income in cash, which often comes with a profitability of around 2%, for a specified period, to the current account where the salary is deposited.
The Shift Towards Cash Incentives
- Banks are now focusing on attracting the actual cash income, with some offering additional bonuses for referring friends and family to open a new account.
- Leading banks like BBVA, Santander, and Unicaja are offering substantial cash incentives, while others like CaixaBank, Imagin, ING, and Openbank are providing slightly lower amounts.
- The amount of the cash incentives depends on the salary amount, the required duration of the account, and the additional financial products contracted.
The Importance of Capturing Nominations
Nuria Álvarez, a banking analyst at Renta 4, explains that capturing nominations is crucial for cross-selling products to customers. This strategy is not just about liquidity but a defined approach by each entity to attract specific types of clients and products.
Considerations Before Switching Nominations
- High-value gifts are usually reserved for customers with substantial salaries and may require additional conditions like domiciling receipts or online-only operations.
- Customers should evaluate if the extra incentives justify the additional products or services required by the bank.
- Longer commitment periods for these promotions may restrict customers from taking advantage of new offers from other institutions.
A Tool for Negotiation
Experts suggest that nominations can be used as leverage when negotiating with banks for better terms and conditions. It is essential to assess the overall product offerings of a bank before committing to switch nominations.
Conclusion
Changing nominations can be a strategic move for customers seeking better financial benefits and services. However, thorough analysis of the incentives, requirements, and future banking needs is crucial before making the switch.
FAQs
Is it worth switching nominations for cash incentives?
Switching nominations for cash incentives can be beneficial for customers who want to maximize the value of their income. However, careful consideration of the terms and conditions is necessary to ensure the benefits outweigh the requirements.
What should customers evaluate before changing nominations?
Customers should assess the cash incentives, additional products or services required, commitment periods, and the overall banking offerings before deciding to switch nominations.