Source: Sainsbury's Bank
Sainsbury's Bank commissioned research(1) with over 4,000 people, and 55% are considering taking out a 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.
Of those looking for a new personal loan in the coming 12 months, 46% would consider 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(1).
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)."
The findings reveal that it's great offers and loyalty schemes that are attracting consumers to products from supermarket banks. Some 69% say it is because they are competitively priced; 61% because they provide attractive offers, and 47% say it's because they offer a loyalty or reward scheme(1)
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 household banking products available. For example, its current personal loan rate of 4.6% APR ReprePR Representative (for loans between £7,500 and £15,000 taken over three years) is one of the most competitive rates available, and 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(3) on all Sainsbury's shopping(4).
On the insurance side, its Premier Cover Car Insurance(5) 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(6). Sainsbury's Premier Cover Home Insurance is among just 9% of policies in the market to offer unlimited buildings cover(6), and its Pet Insurance provides up to £13,000 of cover per condition for veterinary fees, which only2% of maximum benefit policies offer(6).
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.
However, growth will be achieved by remaining focused on responsible lending, ensuring that its products remain good quality and competitive, offering good value to the Sainsbury's customer while further enhancing its already strong and unique Nectar reward proposition.