Are bank switching incentives unethical?

RG2015

As above, I have created a specific thread to discuss this issue.

RG2015

gsmh said:

OK. Which banks have been recommended here where there isn't some sort of bribe for switching or where there isn't a reward involved? I wasn't referring to the majority of threads on this forum. Read what I actually said. You're completely right about people only seeing what they want to see.

Here is an earlier thread to start things off.

https://forums.moneysavingexpert.com/discussion/comment/76843614#Comment_76843614

kinger101

I'm surprised you dignified their post with its own thread.  

RG2015

kinger101 said:

I'm surprised you dignified their post with its own thread.  

Perhaps, but there is no excuse now for off-topic posts on any other threads.

In any case, it is a valid debate worthy of discussion. I am particularly uncomfortable with the main MSE site unapologetically referring to these as bank bribes.

https://www.moneysavingexpert.com/news/2018/01/how-to-play-the-bank-bribe-bonanza-game-and-earn-1000/

https://www.moneysavingexpert.com/search/#stq=bribes&stp=1

colsten

I wish there was a way to hide entire threads from display. 

NottinghamKnight

Where's the poll?

gsmh

No, they're not at all unethical. The incentive is a great way of gaining new customers. I remember the incentives available to students back in the 70s. The banks hope to lure new customers who will use the new account as their main day-to-day current account. It's a good marketing ploy and I have taken advantage of a few over the years.

born_again

It's a bribe pure and simple.

Catplan

It’s all about the numbers though isn’t it. Bank A has lots of people switching out as Bank B is offering £100 for those switching, this looks bad for Bank A but the figures look good for Bank B who have gained many new customers. 

Bank A could respond with offering a rate beating best / highest paying interest account to temp new customers into it or they too can offer an incentive for people to switch to them, often the banks decide to offer incentives rather than improve or offer the best product. The objective is to get new customers how they do it is often secondary concern.

gsmh

born_again said:

It's a bribe pure and simple.

In the way that a BOGOF, or buy one get one half price, or loss-leaders are bribes, I suppose so. Any offer to persuade a customer to move to another brand could be construed as a bribe but the word bribe has darker connotations so I would question its use. There is nothing wrong with an offer, a reward, cashback or anything like that. Far preferable than a communist economy where nobody can be bothered to compete or offer exceptional service. The CBA attitude of a GUM worker in Moscow was legendary. We are a capitalist economy so incentives to switch brands are perfectly normal and acceptable.

RG2015

You may wish to correct your typo before the wags pile on in.