UK: Nationwide extends its ‘recommend a friend’ scheme

Nationwide is looking to build on its existing recommendations scheme, by incentivizing not only its existing current account customers, but also its mortgage and savings customers to recommend the building society to their ‘friends’ as a main current account provider. This comes after efforts to increase competition are raised and Nationwide is looking for new opportunities. So far, more than 300,000 of Nationwide current account customers have recommended it to their friends to switch their main current account and allowing both existing and new customers to each cash in on a £100 cash reward. 

To qualify for the switch, the ‘friend’ needs to switch their existing current account held with another provider, i.e. close it down and move all existing payments to the new account, transfer everything within 90 days of the recommendation. They will have the choice of switching to a Nationwide FlexAccount, FlexPlus or FlexDirect current account and need to transfer two Direct Debits as part of the switch. 

Current account switching is very  low in the market with less than half of all UK retail banking consumers switching  their current account and only 22% of all current account customers likely to switch this account in the next 12 months of which 13% would consider their new provider first based on the  cashback/reward on offer. 

According to RFi Group’s data, current account switching is very  low in the market with less than half of all UK retail banking consumers switching  their current account and only 22% of all current account customers likely to switch this account in the next 12 months (providing a score of 6 or more on an 11-point scale) of which 13% would consider their new provider first based on the  cashback/reward on offer. 

Hence, Nationwide plays well into consumers’ needs on this aspect; however, the building society has a hard cap on the incentive allowing one customer to earn up to £500 per tax year on the recommendation reward.


Source: RFi Group, UK Priority & Retail Banking Council H1 2017

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