Bank, airline part ways
BNZ says the decision to part ways with Air New Zealand’s airpoints scheme is part of its strategy to give customers more flexible reward options.
The companies announced on Thursday they would not renew their agreement, a relationship which had spanned almost two decades.
From May 1, Westpac will step in as the new partner, offering a range of reward cards, an airpoints-earning mortgage, and other products to come.
Westpac has already signalled a major campaign to try and poach tens of thousands of BNZ customers.
But BNZ’s retail and marketing director, Craig Herbison, said the decision would benefit the bank.
‘‘This program was started in the 90s – it’s no longer the 90s,’’ he said. ‘‘[Customers] want more flexibility and choice, they want to be able to earn rewards differently, and they want to be able to spend them differently as well.’’
The bank’s replacement is a cashback rewards scheme offering the same value as airpoints, which Herbison said would become more generous over time.
Cash was popular with customers as it was tangible and much more flexible than being tied to one specific carrier, he said.
Herbison would not expand on details but hinted that ‘‘flying and travel alternatives’’ would play a part in the new scheme.
He also said customers would be rewarded on the basis of their entire relationship with the bank, not just credit card spending.
The number of affected customers with GlobalPlus cards was commercially sensitive, Herbison said.
Westpac chief executive David McLean said the 10-year contract the bank had signed was a coup.
He estimated as many as 100,000 BNZ customers could be looking for a new credit card provider where they could keep earning airpoints.
‘‘It’s a multibillion-dollar category. They are very, very loyal, and they will switch to keep their airpoints [earning capacity].’’
Westpac has already dangled several juicy lures to try and entice customers, including triple airpoints in the three months to July 31, waiving fees for a limited time on most of the new cards, and an interest-free balance transfer offer.
Air New Zealand said its decision was triggered by a review into the value offered by BNZ.
‘‘Following the review, it was clear that Westpac were able to offer a wider range of airpoints earning products at better earn rates for our customers,’’ the airline said.