FNB eBucks deal to expand rewards programme

2013-09-12 08:00
FNB has expanded its reward programme in a partnership with Shoprite Checkers. (FNB)

FNB has expanded its reward programme in a partnership with Shoprite Checkers. (FNB)

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Johannesburg - The First National Bank and Shoprite Holdings reward programme partnership is intended to expand loyalty programmes to a wider audience, the bank said.

FNB announced a commercial partnership with retailer Shoprite Checkers on Wednesday that would see eBucks customers being able to earn and spend points in Shoprite Checkers stores.

But the loyalty programme is not only meant for big spenders.

"In the reward space, the perception often exists that rewards programmes are really just there for the elite customers - those high spenders in the market - and I think this is one value proposition that proves the opposite," eBucks CEO Jolandé Duvenage told News24.

FNB said it chose the retailer because of its reach in SA of around 940 stores, across a varied economic demographic.

Digital technology

The model will see Shoprite and Checkers customers earn up to 15% of their spend back in eBucks rewards as well as being able to pay for goods in cash and eBucks.

The deal though, does not negatively affect FNB customers who do not shop at the partner retailer, the bank insisted.

"This is a real sweetener. Nothing changes from normal life - you can shop where you want to go," said Jacques Celliers, head of FNB Business Banking and soon to replace Michael Jordaan as CEO.

Digital technology has been a central feature of Jordaan's tenure as CEO of FNB and he said that e-commerce platforms had the capacity to change consumer behaviour.

"It also entices them to not use manual channels like cash and cheques but to go onto electronic channels internet banking and the app," Jordaan told News24.

Since October 2000, FNB has paid out R3bn in eBucks rewards and the deal with Shoprite Checkers is estimated to be worth millions to customers.


"I think most exciting for customers is the sheer amount of eBucks that we pay out within a year. Last year, it was over R700m, and that in itself was an increase of 30% on the prior year, and that in itself was an increase of 50% on the year before that.

"The quantum that we think this will bring is at least R120m a year to customers," Jordaan said.

FNB said that this deal was tailored for Shoprite Checkers and it is unlikely that further retailer deals would materialise.

"So the way this proposition has been created is that no, we won't be bringing on a Pick n Pay, Spar, Woolies or those guys into this proposition.

"This proposition in terms of our retail grocer is very much a partnership with Shoprite Checkers," said Duvenage.

While e-commerce platforms are on a growth trend the deal was not an easy one to put together and Jordaan credited his team for doing the hard work.

"It took nearly two years. There were times when this deal was dead and then it kind of revived itself, and right at the end, I was called in to go and have one or drinks with the CEO [Whitey Basson]. My only contribution to this deal was putting my liver on the line; it was a really tough evening," he said to laughter from reporters.

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Read more on:    fnb  |  shoprite holdings  |  e-commerce

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