Asda has rebranded its personal finance
division as
Asda Money and launched an unlimited cash-back credit card.
The new Asda Money Credit Card will offer 1% unlimited cash-back
on Asda shopping, 1% cash-back on Asda fuel and 0.5% unlimited
cash-back on all shopping outside Asda.
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The Asda Money Card has no annual fee.
The creation of Asda Money – targeting the retailer’s 18m customers
across 542 stores – comes as bank satisfaction from consumers has
dipped off the back of the RBS-NatWest IT problems and the Barclays
Libor scandal.
Asda has offered financial services for 10
years under the Asda Finance brand, with insurance products, travel
money and a credit card part of its portfolio. The launch of Asda
Money has revamped its previous array of products, including the
introduction of a new credit card.
In June,
high street retailer Marks & Spencer announced plans to open
M&S Bank and offer current accounts, alongside its online
operation M&S Money.
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By GlobalDataAsda Money has announced no plans to offer current accounts yet.
However, the supermarket has reportedly been developing a series of
financial products in preparation for the official launch of Asda
Money over the last six months.
Kirsty Ward, head of Asda Money, said:
“Quite a lot of cash-back schemes have great
cash-back rates, but they also have quite a lot of conditions
and/or high APR. Times have changed and shoppers don’t want
complicated points schemes or rewards that don’t translate into
real every day savings.’
Rival retailers Tesco and Sainsbury’s stepped
into the personal finance sector more than a decade ago and have
targeted more of the market.
In June 2011, Tesco Bank CEO Benny Higgins told RBI
about the lender’s plans of penetrating the UK retail
banking market further with the launch of its current accounts
in 2012 but the lender has
delayed plans of launching its current accounts until 2013.
Tesco Bank plans to offer mortgages in the near future. Tesco Bank
already has over 6.5m customers.
Sainsbury’s Finance – a joint venture with
Lloyds Banking Group – has over 1.4m active customer
accounts.
