North Shore Bank of Peabody, MA, is set to offer a new incentive to their customers, namely to offer people who hold a checking account a reward scheme that will offer them incentives in exchange for obeying various monthly rules.
This is our first foray into a rewards loyalty program. The only thing we’d really done before was a quarterly debit card promotion,
said Jim Muse, North Shore’s senior banking officer, according to American Banker.
In the current difficult financial situation, a large number of local banks have found it difficult to think up new ways to increase revenue.
We are flush with cash as a lot of banks are right now – lending is down. So we want to focus more on accounts,
said Muse to American Banker.
In exchange for increasing the usage if their debit cards and automating their accounts, North Shore Bank will start to pay its customers as a reward. The reason why they are offering this incentive is partly due to a forthcoming change to the banking regulations which will prohibit fees for using a credit card. They hope this scheme will increase revenue and also catch the attention of younger savers.
As well as paying their customers $3 for certain transactions, balance targets and other criteria, some savers will also receive a $25 rebate from such things as fee’s for using other banks ATM’s. North Shore Bank hopes that this will help them retain existing customers as well as attracting new ones.
The criteria for the rewards scheme are, for the customer to have a balance of no less than a $1000 on average every day. This will help them to avoid a $12 penalty fee. Also they will have to have their account set up to receive money via direct deposit, and to receive their account statements via email and to use their debit card for purchases at least ten times per month and to pay three bills via the web site of the bank.