Gifts galore as bank looks to entice new customers
COMPETITION in the current account market has been ramped up as First Direct launches a range of welcome gifts for new customers to choose from, including self-development courses and gadgets.
The online and telephone bank, which regularly tops customer satisfaction surveys, had previously offered up to £125 to customers who switched.
Now, instead of cash, First Direct is tempting new customers with a range of gifts which it says could have a more lasting positive impact, enabling people to try doing something new.
They can now choose from 300 online self-development courses which have been chosen to appeal to the lifestyle profile of First Direct’s typical customers.
These include courses which could help customers with their own business ventures, such as a course in “ultimate graphic design”.
Or customers could kickstart a new hobby with a course on travel photography or a bartending and drink mixologist masterclass.
First Direct said the new gifts have prices equal to or greater than £100. Some may be worth a significant amount more than this.
Other incentives new customers could choose from include a £150 Expedia e-voucher or gadgets including Bose on-ear wireless headphones or an Amazon Echo Spot.
New customers will receive an activation code to get their gift, which they will receive after completing the current account switching process and paying in £1,000.
While First Direct has now ditched its offer of cash for people to switch to it, it has kept its offer to pay customers £100 if they decide to switch away from it after six months – provided they have paid at least £1,000 a month into their account for six months and have not banked with First Direct before, as well as having switched to it initially using the current account switch service.
First Direct, a brand of HSBC, said research into its typical customers shows they put a far higher premium on new experiences than they do on cash.
It said travel and the opportunity to try new experiences both resonate much more with this group.
Joe Gordon, head of First Direct, said: “Typically, First Direct’s customers are digitally savvy and entrepreneurially minded.”
He continued: “From them we know cash into your account when you join is great, but it can get lost on day-to-day spending.
“These new incentives will start our relationship off on a more personal level, offering something that can be enjoyed over a longer period of time.”
Among the other perks to woo current account switchers, M&S Bank offers a £125 gift card for customers switching to it while Halifax is offering £75 to switch.