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Supermarket Banking High On Shopping List In Scotland

11 February 2014

Around 862,000 Scots consider taking out supermarket banking products this year(1)

 

Sainsbury’s Bank research(1) indicates that 51% of people in Scotland are considering taking out a new banking or insurance product over the next 12 months, or switching to another provider. Of those, 41% – or about 865,000 people (compared to 38% in the rest of Britain) – are considering taking out a new banking or insurance product from supermarket banks.

The research(1)  also shows that 57% of Scots spend more time researching and shopping around for their banking and insurance needs now than they did three years ago.

And it’s great offers and loyalty schemes that are attracting consumers.  The research(1)  reveals that 73% of Scots (compared with 69% in the rest of Britain) considering taking out a product from a supermarket bank say it is because they are competitively priced; 59% (61% Brits) due to the attractive offers they provide, and 38% (47% Brits) because of their loyalty or reward schemes.

Peter Griffiths, Chief Executive of Sainsbury’s Bank said: “With many people’s household budgets still stretched, doing your research and shopping around for financial products that deliver quality and value is essential.

“Sainsbury’s was the first supermarket to open a bank, back in 1997 and our proposition has never been stronger.  We design our products and services with the Sainsbury’s supermarket customer in mind, providing great value and quality with the additional benefit of Nectar points(2).”

Across Britain, of those looking for a new personal loan in the coming 12 months, 46% would consider one from a supermarket bank, as would 43% of those considering taking out a new pet insurance policy, and 40% of those looking at having a new credit card.

Sainsbury’s Bank is looking to grow by continuing to provide its customers with competitive banking and insurance products that offer generous rewards. The Bank currently has 1.5 million active customer accounts and has a massive opportunity for growth with 23 million shoppers visiting its stores each week.

Sainsbury’s Bank offers double Nectar points for two years on selected insurance and banking products. The more qualifying products customers have, the more points they could earn.  For example, if a customer has all six products, they could earn up to seven times the number of  points on all of their Sainsbury’s shopping (when using their Nectar card at the same time). This is the equivalent of up to 7% back on their Sainsbury’s shopping.

New customers buying the Bank’s car, home and pet insurance also receive initial discounts on their premiums and preferential rates on loans are also available to Sainsbury’s shoppers with Nectar cards.

Sainsbury’s Bank has some of the most competitive and attractive products available.  For example, its current personal loan rate of 4.6% APR Representative (for loans between £7,500 and £15,000 taken over three years) is one of the most competitive rates available. Its Premier Cover Car Insurance(3) guarantees to provide a like for like courtesy car for the duration of any repairs, something that only 5% of policies in the market offer(4).  The Sainsbury’s Nectar Credit Card is among only 1% of cards in the market that provides an introductory offer of 0% APR on both balance transfers and purchases for 15 months (16.9% APR Representative Variable), and a double Nectar reward scheme that is equivalent to 2% back(5) on all Sainsbury’s shopping(6).

Sainsbury’s recently concluded its acquisition of the 50% stake in Sainsbury’s Bank held by Lloyds Banking group.

Notes to editors:

Rates and information correct at 4th February 2014

Retail Banking or Insurance product Percentage of people who are planning to take this product out over the next 12 months and would consider a supermarket bank(1)
Personal loan 46%
Pet insurance 43%
Credit card 40%
Travel money 37%
Critical illness 37%
Home insurance 35%
Savings account 35%
Car insurance 34%
Travel insurance 32%
Current accounts 26%
Mortgages 24%
Life insurance 22%

 

(1) Sainsbury’s Bank commissioned independent research agency, ICM. ICM interviewed a random sample of 4,062 adults aged 18+ in GB online between 15th -19th January 2014. Surveys were conducted across the country and the results have been weighted to the profile of all adults. ICM is a member of the British Polling Council and abides by its rules. Further information at www.icmresearch.com

(2) Nectar points available on selected products.
(3) U K Insurance Limited is the underwriter of Sainsbury’s Bank car insurance and Sainsbury’s Bank home insurance and is part of the Direct Line Group plc. Direct Line Group plc (Direct Line Group) is headquartered in Bromley; it has operations in the UK, Germany and Italy.

(4)  According to independent analysis of the UK life insurance and general insurance markets conducted by Defaqto in January 2014, commissioned by Sainsbury’s Bank

(5) According to independent analysis conducted by Moneycomms of the UK credit card, savings, loan and travel money markets in January 2014, commissioned by Sainsbury’s Bank

(6) Purchase must be made using Sainsbury’s Bank credit card and Nectar card must be used at the same time