Incentives for sound cash control
Nedbank’s Greenbacks money management programme is a behaviour-change tool that is made up of different packages, groups of easy-to-do money choices geared towards a better financial future for the client through encouragement, incentives, nudges and rewards.
Greenbacks members who stay on track with the changed behaviour of each of the packages they opt into will qualify to move up to the next level in the programme where they will have access to more rewards.
Dharmesh Bhana, Nedbank’s executive for loyalty and rewards, said the the bank is trying to move away from just another rewards programme.
“It’s a money management programme that happens to reward you, so the rewards element is really a secondary piece.
“We really want people to find the utility or the reward element in being able to manage their money better, and that's what our grand purpose stands for, which is money expertise,” said Bhana.
“As people get better with managing their money, we will give rewards, because the South African consumer is used to getting rewards in the form of points or discounts. The third strong element that we've incorporated into the programme is around doing good. Nedbank is focusing on digitisation and moving to become more of a digital bank,” said Bhana.
He said that through the Nedbank Affinities programme clients can choose to support the development of the arts, the preservation and conservation of the environment, sports development or help orphaned and vulnerable children.
Bhana said that in terms of the money management aspect the bank is under no illusions that this will take time to play out in the market and that people are not going to be better with their money overnight because of joining the programme.
He said the bank does this by using behavioural economics where tests are done on what gets people to change their behaviour.
“Now one of the ways in which we do that is to make it easier for customers. We don't necessarily prescribe all the behaviours that customers need to do, we communicate where they are on their financial journey through our app and through our mobile digital channels around what they should be doing and how they can do it and then how we make it easier for them by using the app. So that is the ethos of the programme,” said Bhana.
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 four core financial needs: transacting, saving, borrowing and insuring.
According to the 2018 FinScope SA Fact Sheet, as the cost of living rises South Africans are spending less on savings, insurance and the servicing of debt. This further highlights that more South Africans are relying on loyalty and rewards programmes to help them make ends meet, with 75 percent of consumers using loyalty programmes.
Anton de Wet, Nedbank retail and business chief client officer, said many people find it difficult to manage money. “Few have a clear idea of the future impact on their lives of money choices made today. We believe that our new Greenbacks Money Management programme will make it easier for people to make better money choices,” he said.
He said Nedbank’s digital first strategy recognises that consumers are fast adopting mobile and digital technology as a means to improve their lives.