Nedbank’s revamped Greenbacks money management scheme could pay off mortgages or fund holidays for a small number of customers.
Speaking to Reuters, Nedbank’s head of loyalty and rewards Dharmesh Bhana said that the scheme will act as a behavioural change tool that will incentivise and reward good money choices.
“It’s in our interest to make sure customers manage their money well,” Bhana said, adding the bank wanted to differentiate its programme from the standard, points-based models already widely available.
As well as standard offerings such as deals and vouchers, a small number of customers will receive rewards linked to the specific behaviour encouraged, for instance, a refund on a mortgage or other loan which the customer regularly pays on time.
He added that around 600,000 people are using Greenbacks and that the numbers are growing rapidly.
Announced in October, Nedbank said that the new and enhanced Greenbacks is a money management programme designed to assist and motivate clients to make better money choices that resolve the core financial challenges that individual consumers face.
Greenbacks members who stay on track with the changed behaviour of each of the packages they opt in to will qualify to move up to the next level in the programme where they will gain access to further rewards, the bank said.
The new money management programme is built on behavioural science that has been used to design around key client behavioural outcomes.
“Using the key client behavioural outcomes as the core driver for the design of the programme has led to the development of Greenbacks packages that are geared towards meeting 4 core financial needs – transacting, saving, borrowing and insuring,” Nedbank said.
As the cost of living rises, South Africans are spending less on savings, insurance and the servicing of debt, the lender said, citing the 2018 FinScope SA Fact Sheet, which found that as many as 75% of consumers rely on loyalty and rewards programmes to help them make ends meet.