Thursday, February 2

Caixabank follows in the footsteps of BBVA and Openbank and rewards its customers with money

Caixabank has taken another step to achieve a greater connection between customers and the bank and promotion just released MyHome, which includes all products linked to the home. That is, mortgages, financing for reforms, credits for efficient domestic equipment, home insurance and alarm security systems. And it will be valid all year round.

through her, the client will be able to obtain 50 euros in cash with each contracted product of this package (mortgages, personal loans, insurance etc) with a maximum of 500 euros. In order to access the promotion, it is necessary to contract at least two products.

“It is very striking, and it is even cheap for banks, since the margins of products such as contracting insurance are very high and have an important link,” explains Antonio Gallardo, an expert at Banqmi, the financial comparator of iAhorro.

The products promoted by Caixabank

Among the promoted products, the fixed-rate mortgage Casaf├ícil. Finance 80 percent of the appraisal price with a maximum of 30 years. The interest rate will depend on the client’s profile and their relationship, but at 20 years the interest rate applied would be 3.913 percent APR.

Despite the cash prize claim, it is not the best offer on the market, and Future mortgage holders can find mortgages with an APR of 1.50 percent over 20 years, such as the one marketed by Ibercaja.

Another product that would give access to this cash check would be the MyHome Loan. It offers financing to carry out housing reforms and to buy state-of-the-art equipment to make housing more sustainable.

The bank makes the commercial catalog of its subsidiary Wivai available to customers, such as maximum efficiency appliances and solar panels. The loan charges an interest rate of 7.1 percent APR from 10,000 euros. And, although this product is exempt from opening and cancellation fees, it is also not one of the most competitive because there are offers below 7 percent.

The promotion is also completed with the possibility of taking out health insurance through SegurCaixa Adeslas or an alarm via Securitas Direct.

BBVA and Openbank rewarded for bringing customers

Caixabank’s initiative is not new and some entities such as BBVA and Openbank already rewarded their customers for attracting friends and family with a minimum of 50 euros and a maximum of between 500 and 1,000 euros depending on the contracted product.

BBVA launched in February 2021 the Invite a Friend Plan, in the payroll and cards area. The bank gave 50 euros per friend or family member who came to the bank and direct deposited a salary of at least 800 euros (for the first promotion) or contracted a card for the second, with a maximum of 10 friends and 500 euros.

Both initiatives, which are now inactive, made it possible to attract 5,000 new clients thanks to 9,000 sponsors.

For its part, Openbank, after the action on mortgages, has an active promotion in which the client of the ‘online’ entity can earn up to 500 euros if they manage to get friends and family to invest at least 3,000 euros in their roboadvisor.

What are these promotions looking for?

Cash prizes are used by entities as a hook to attract customers or increase bonding with the entity.

In relation to the first case, with rates at zero percent, it is difficult to attract clients and liabilities via deposits and high remunerations. To this we must add that the cost of capturing new customers for entities is very high, so it means cost savings if this capture is done through customers of the entity who can act as “ambassadors” of the bank offering opinions very positive in relation to the customer experience.

In the case of active promotion by Caixabank, It is related to the increase in commissions by banks to customers, forcing them to subscribe to a high bond to avoid them. This caused many clients to be interested in changing to other entities that did not apply them.

Caixabank is interested in offering money in exchange for bonding, since a linked customer is a much more open customer to contract other products with the entity, without forgetting that the products that give access to this money in cash imply income for the entity via interest or commissions, experts say.

“But it is still a limited form of fundraising, it is not the main one. But we do see that it is increasing precisely because of its advantages and more entities are going to do it,” Gallardo insists.