Why don't banks reward existing customers?

callum9999

colsten said:

callum9999 said:

colsten said:

Why do people explain why banks don't offer rewards to existing customers, when in the very thread there is a list of the rewards banks do offer to existing customers?

Because the list you produced is full of trivial rewards in comparison to the new customer switching bonuses? 

I know they're virtually useless to me... I have accounts with almost all of them but hardly use any of the things you mention.

I don‘t, for example, consider £60 per year per account trivial. Nor do I consider 2% interest as trivial. But each to their own. The fewer people chase those rewards, the longer they will probably exist.

Does the 2% refer to Virgin? Capped at £1k, making it £20 per year - which you think is in the same league as a £150 sign up bonus!?

colsten

callum9999 said:

colsten said:

callum9999 said:

colsten said:

Why do people explain why banks don't offer rewards to existing customers, when in the very thread there is a list of the rewards banks do offer to existing customers?

Because the list you produced is full of trivial rewards in comparison to the new customer switching bonuses? 

I know they're virtually useless to me... I have accounts with almost all of them but hardly use any of the things you mention.

I don‘t, for example, consider £60 per year per account trivial. Nor do I consider 2% interest as trivial. But each to their own. The fewer people chase those rewards, the longer they will probably exist.

Does the 2% refer to Virgin? Capped at £1k, making it £20 per year - which you think is in the same league as a £150 sign up bonus!?

Thanks for reminding me, though, I am very aware that the interest for VM current accounts is capped at a £1k balance per account. 'nuff said.

hoc

There are more blatant price discrimination practices in UK which should regulated long before one off bank incentives. For a start look at mobile phone contract prices available only to new customers.

callum9999

hoc said:

There are more blatant price discrimination practices in UK which should regulated long before one off bank incentives. For a start look at mobile phone contract prices available only to new customers.

Which contracts are you talking about - I'm not sure if I've ever seen a single one that does that?

callum9999

colsten said:

callum9999 said:

colsten said:

callum9999 said:

colsten said:

Why do people explain why banks don't offer rewards to existing customers, when in the very thread there is a list of the rewards banks do offer to existing customers?

Because the list you produced is full of trivial rewards in comparison to the new customer switching bonuses? 

I know they're virtually useless to me... I have accounts with almost all of them but hardly use any of the things you mention.

I don‘t, for example, consider £60 per year per account trivial. Nor do I consider 2% interest as trivial. But each to their own. The fewer people chase those rewards, the longer they will probably exist.

Does the 2% refer to Virgin? Capped at £1k, making it £20 per year - which you think is in the same league as a £150 sign up bonus!?

Thanks for reminding me, though, I am very aware that the interest for VM current accounts is capped at a £1k balance per account. 'nuff said.

Huh? So you're claiming that a £20 yearly interest payment which can end any time (and surely will once Virgin are happy with the number of accounts opened), is just as good as a £150 up front joining bonus? Weird.

Ballard

williewonder said:

Banks have switch offers, wine offers for new customers, etc. Why don't banks have rewards for existing banking customers?

How much money do you think that a bank earns from having a customer with an average £2,000 balance?
Most high street banks offer a debit card where the account holder can withdraw funds from many ATMs for free, a chequebook, use of internet/phone/app banking and often postal statements and advices. Don't get me wrong, this isn't a cry for sympathy for banks (they don't deserve it) but just one for a reality check.

colsten

callum9999 said:

colsten said:

callum9999 said:

colsten said:

callum9999 said:

colsten said:

Why do people explain why banks don't offer rewards to existing customers, when in the very thread there is a list of the rewards banks do offer to existing customers?

Because the list you produced is full of trivial rewards in comparison to the new customer switching bonuses? 

I know they're virtually useless to me... I have accounts with almost all of them but hardly use any of the things you mention.

I don‘t, for example, consider £60 per year per account trivial. Nor do I consider 2% interest as trivial. But each to their own. The fewer people chase those rewards, the longer they will probably exist.

Does the 2% refer to Virgin? Capped at £1k, making it £20 per year - which you think is in the same league as a £150 sign up bonus!?

Thanks for reminding me, though, I am very aware that the interest for VM current accounts is capped at a £1k balance per account. 'nuff said.

Huh? So you're claiming that a £20 yearly interest payment which can end any time (and surely will once Virgin are happy with the number of accounts opened), is just as good as a £150 up front joining bonus? Weird.

Please stop putting words into my mouth.

jbrassy

Ballard said:

How much money do you think that a bank earns from having a customer with an average £2,000 balance?
Most high street banks offer a debit card where the account holder can withdraw funds from many ATMs for free, a chequebook, use of internet/phone/app banking and often postal statements and advices. Don't get me wrong, this isn't a cry for sympathy for banks (they don't deserve it) but just one for a reality check.

They do earn interchange fees every time someone uses their debit card to make a purchase, which is the main source of financing for a lot of these newer app-based banks, such as Starling and Monzo.

However, a lot of people think about current accounts in the wrong way. Banks don't operate current accounts to earn revenue or make significant profits. They use current accounts as a cheap source of financing. The majority of current accounts pay zero interest on balances. Therefore, they can use current account balances as a cheap source of finance to earn revenue from other activities such as loans and mortgages from which they make a healthy margin. Effectively, current accounts cross-subsidise other products that banks offer.

callum9999

colsten said:

callum9999 said:

colsten said:

callum9999 said:

colsten said:

callum9999 said:

colsten said:

Why do people explain why banks don't offer rewards to existing customers, when in the very thread there is a list of the rewards banks do offer to existing customers?

Because the list you produced is full of trivial rewards in comparison to the new customer switching bonuses? 

I know they're virtually useless to me... I have accounts with almost all of them but hardly use any of the things you mention.

I don‘t, for example, consider £60 per year per account trivial. Nor do I consider 2% interest as trivial. But each to their own. The fewer people chase those rewards, the longer they will probably exist.

Does the 2% refer to Virgin? Capped at £1k, making it £20 per year - which you think is in the same league as a £150 sign up bonus!?

Thanks for reminding me, though, I am very aware that the interest for VM current accounts is capped at a £1k balance per account. 'nuff said.

Huh? So you're claiming that a £20 yearly interest payment which can end any time (and surely will once Virgin are happy with the number of accounts opened), is just as good as a £150 up front joining bonus? Weird.

Please stop putting words into my mouth.

How about you use your own words then instead of just saying "nuff said" and leaving me to figure it out!

I said that most of the things you described were trivial in comparison to the £150 switching bonuses, and you replied saying 2% interest (which you say you knew was capped at £20/year and can be withdrawn at any time) wasn't. I really don't know how else I'm meant to interpret that?

(Perhaps your £60 was a better example and you misspoke when bringing up the 2%? I ignored that bit as I don't know what the £60 refers to!)

[Deleted User]

[Deleted User] said:

colsten said:

[Deleted User] said:

I do think it's sad that there has been a break down between customer and bank on a personal level. Now you have to be rich to speak to someone local on a regular basis. You notice a lot of these digital banks trying to make you feel special or part of something. You are of little interest to banks unless they can make money from you. And that is peanuts for most people, in the mind of the bank.

If speaking to a person is important to you, you could use First Direct, as they are still providing telephone support.

Though I am intrigued - what do you want to speak to someone in a bank about on a regular basis? Why do you think banks ever had anything other than making profits in mind?

Just the small things, when you used to visit a branch before internet banking and the like, you got to know the people on the counter, small talk etc.

Of course banks want to make money from you, but the people on the counter never used to be tied to targets or be as forceful in pushing products at one time, long ago. In terms of applications, they used to have more leeway in making decisions, taking in personal circumstances.

It's funny, hundreds of thousands of people have, apparently vivid, memories of staff pushing PPI on them even though they "didn't want or need it". Obviously that's a lie based on CMC scripts but it did still happen. Even in the good old days with rose tinted specs, some bank staff were pushed to make sales of stuff like that