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Added Value Accounts – the benefits

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I took a look at bank accounts in my native UK recently and it dawned on me that the proposition offered by banks in the UK is by far much more generous than where I currently reside in the UAE, or so it seems. 

Take my own UK bank for example, they offer a variety of accounts with a variety of benefits (see below).

So when I look at accounts in the UAE and greater Middle East landscape it seems we get ‘charged’ but there are not many benefits associated with the accounts… a debit card and a cheque book!  As written in previous blog posts, the dynamic between banks and customers needs to change since the global financial crisis and the feeling of being charged doesn’t sit well with customers. However, where UK banks do well in my opinion is that they position their accounts as value loaded products that customers can ‘buy’ vs being ‘charged for’ as they receive so many benefits in the bundle they decide upon. 

Psychology plays a huge part in the process of selling and Added Value accounts are in my opinion, a fantastic way to generate incremental revenue; change the dynamic between bank and customer and give the customer a product that has a perceived value of several hundred $’s/£/AED/SAR etc for a fraction of the cost.

The concept of loading credit cards with benefits is not a new concept in the Middle East and many issuers have suffered from bad debtors. However, applying benefits to products that carry little or no risk is also a sure way to generate significant revenue and at the core of the banks customer relationship. Added value accounts have proven to reduce attrition and drive customer relationships and research indicates that customers really do value the benefits offered to the core product.

If customers are engaged at the core of their relationship the right way, it will be the start of a loyal relationship and the potential to cross sell and up sell other products will be greater.

Silver Account: 

  • European Travel Insurance
  • Breakdown Cover
  • Mobile Phone Insurance
  • Card protection
  • £10 overdraft buffer
  • £9.95 per month

Gold Account:

  • Worldwide Travel Insurance (worth £281 per year)
  • Breakdown Cover (worth £59 per year)
  • Mobile Phone Insurance (worth £83 per year)
  • Card protection
  • Data storage
  • £100 interest free overdraft
  • £12.95 per month

Platinum Account

  • Worldwide Travel Insurance (worth £409 per year)
  • Breakdown Cover (worth £169 per year)
  • Mobile Phone Insurance (worth £83 per year)
  • Card protection
  • Data storage (worth £20 per year)
  • £250 interest free overdraft
  • £10 overdraft buffer
  • Preferential rates
  • £17 per month
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