Almost 10 million people consider taking out supermarket bank product this year(1)
Sainsbury’s Bank research(1) indicates that 55% of Brits are considering taking out a new banking or insurance product over the next 12 months, or switching to another provider. Of those, 38% – or about 9.8 million people – are considering taking out a new banking or insurance product from supermarket banks.
The research(1) also shows that 58% of people 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 reveals that 69% of people considering taking out a product from a supermarket bank say it is because they are competitively priced; 61% due to the attractive offers they provide, and 47% 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).”
Of those looking for a new personal loan in the coming 12 months, 46% would consider a supermarket bank, followed by 43% of those considering taking out a new pet insurance policy, and 40% of those looking at having a new credit card.
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 recently concluded its acquisition of the 50% stake in Sainsbury’s Bank held by Lloyds Banking group.
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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)|
(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
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Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Bank provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times. Our products consistently top best buy tables and regularly win awards for quality, price and service.
Sainsbury’s Bank has its own banking licence, is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514), except for Credit Cards and Loans where it is licensed by the Office of Fair Trading (OFT) license no. 421897. The Bank has an independent membership to the Financial Services Compensation Scheme.